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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: Michaelth1 who wrote (8493)	10/16/2000 2:41:12 PM
From: Investartist	Read Replies (1) \| Respond to of 10852

LOR vs. GMH in earnings. For every $1000 invested in Loral TODAY, the company will gross about $1098 this year. For every $1000 invested in GMH TODAY the company will gross about $134 this year. For every $1000 invested in Loral today, the company earned $34 of positive EBIDTA last quarter. For every $1000 invested today in GMH, the company earned $4 of positive EBIDTA last quarter. I ask you, which company is more likely to be worth 10 times more in share value from today in the next few years? (Notwithstanding the buyout) Here's my math. Correct me if any numbers appear to be incorrect: Loral is very oversold at this time relative to Hughes (GMH). BOTH COMPANIES ARE EBIDTA POSITIVE! Based on the June 2000 EBIDTA and the 12/99 full year revenues consider the following EBIDTA per share for 6/00 Quarter: Loral= $0.15 for June Quarter GMH= $0.127 for June Quarter Gross Revenues per share based on last 12 months as per MSNMoneyCentral Loral= $4.78 of gross revenue per share GMH= $4.17 of gross revenue per share Price per share as of today Loral= $4.38 per share GMH= $31.15 per share THEREFORE the market is currently paying the following for revenue: Loral= $4.38 per share for $4.78 gross revenue per share = 0.91 times revenue GMH =$31.15 per share for $4.17 gross revenue per share = 7.47 times revenue ________________________________________________ Loral EBIDTA =$4.38 per share for a positive $0.15 EBIDTA revenue last quarter= 29.2 times last quarter's EBIDTA GMH EBIDTA =$31.15 per share for a positive $0.127 EBIDTA revenue last quarter = 245 times last quarter's EBIDTA HENCE, Loral is highly undervalued relative to GMH. The market is paying over 8 times as much for GMH as Loral for each dollar of gross revenue and each dollar of EBIDTA. I repeat, Loral is highly undervalued and is a very good investment in my opinion at this time. Investartist

To: Michaelth1 who wrote (8493)	10/16/2000 5:23:41 PM
From: Rocket Scientist	Read Replies (1) \| Respond to of 10852

From the Q2 Earnings cc, breakdown of capex: 2000 2001 Telstar 10 (APStar) 180 Telstar 8 120 100 Telstar 13 (Echostar) 25 68 Brazil 40 100 Broad band 50 50 Non Sat Capex 90 50 I agree the 250M$ is Satmex' not Loral's, directly. Still, money (and transponder capacity) is fungible, to some extent. I assume the Sol 1 failure will result in an immediate jump in Cap utilization on the rest of the Loral fleet as well as enable Satmex to place an order for 1-2 new satellites from SS/L.