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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: Due Diligence who wrote (19270)	4/30/2001 12:24:52 PM
From: American Spirit	Respond to of 37746

LOR looking good. Unterberg $9 target, insiders buying, $12 in assets stock at $2.40. Even minus large debt worth $8-9. 800 million cash/credit. Short squeeze will continue. Liking it back to $5 at least here. Also an aliamnce/takeover candidate. The concensus coming out of today's report was it's safe to go back in the water with LOR again. Globalstar is history. Written off now. Not even mentioned. They tok their billion dollar hit last quarter. A one-time charge never to be repeated. No more losses out of G.

To: Due Diligence who wrote (19270)	4/30/2001 2:53:00 PM
From: Sportfish	Respond to of 37746

DD: CBQI heating up (.40 x .47). My guess is you've been watching now & then. LOL. Regards............ Sportfish

To: Due Diligence who wrote (19270)	5/1/2001 8:47:17 PM
From: American Spirit	Respond to of 37746

From WSJ on LOR - CEO slipped and said "liquidation value". His point being I think that liquidation value is 4x this stock price. Their satellites being worth about 3.5 billion and market cap being 700 million. Loral Narrowed Its First-Quarter Loss, But Satellite-Making Unit Remains Weak By ANDY PASZTOR Staff Reporter of THE WALL STREET JOURNAL Loral Space & Communications Ltd. narrowed its net loss to $59 million in the first quarter. Loral's net loss of 25 cents a share was generally in line with Wall Street analysts, and its cash flow showed some improvement from the previous quarter. But the latest results highlight the strategy shifts -- from playing down manufacturing to stretching out payments to some vendors -- the struggling New York company is making to cope with business reversals. In the year-earlier period, Loral had a loss of $123 million, or 49 cents a share. Globalstar Loral's manufacturing increasingly is taking a back seat to the company's services side. Despite projections that bookings for satellite-services will fall in 2001, Loral is betting heavily that in later years it will find customers for the planned expansion of its in-orbit capacity to provide broadcast and Internet services. Meanwhile, Chairman Bernard Schwartz made his most forceful statement yet to distance himself and Loral from the faltering Globalstar satellite-telephone venture. After writing off all but $34 million of the more than $1.3 billion Loral has invested in the project, Mr. Schwartz told analysts Loral won't "sink any more money into" it, and won't spend any significant "executive efforts and energy" to revive it. In the latest quarter, Loral said revenue fell 18% to $261.1 million from $318.1 million. Loral's services operations, whose revenue and operating cash flow rose significantly in the quarter, "increasingly will become the growth engine," for the company Mr. Schwartz said. Satellite-making revenue fell by 19%, and the company reported only one order for a new satellite in the period. Nevertheless, Loral expects five or six additional orders and flat manufacturing-sector revenue through the end of the year. Those once-thriving operations have been hurt by greater competition, performance problems affecting some Loral-built satellites already in service, and a possible financial hit because the U.S. government so far has refused to give permission for Loral to deliver a completed satellite to Chinese customers. The manufacturing sector's revenue was 30% lower than some analysts had predicted, though profit margins remained relatively firm. In a filing with the Securities and Exchange Commission a month ago, Loral said it was "uncertain" about its ability to secure financing to cover future cash requirements. Monday Mr. Schwartz painted a more positive picture by forecasting that earnings before interest, taxes and other charges would climb to $260 million for all of 2001, about 10% higher than some Wall Street projections. But to achieve the year-end target of more than $200 million in cash reserves, Loral is assuming about $200 million in asset sales or dispositions that haven't yet been announced. Mr. Schwartz said Loral would stick with its capital-expenditure plans of about $240 million for the year. At one point during the conference call with analysts, Loral's chairman referred to Loral's "liquidation value" but then quickly corrected himself. Many industry officials and Wall Street analysts maintain that eventually Loral is likely to be acquired or find a strategic partner, in order to raise its lagging share price and compete more effectively in a rapidly consolidating industry. "The value of these segments would be best realized split up," according to Marc Nabi, an analyst at Merrill Lynch.