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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Carl Worth who wrote (9907)	7/24/2002 12:17:16 PM
From: Dave Gore	Read Replies (1) \| Respond to of 16631

I don't know. That sure wasn't a concern when the stock was near $8 not long ago. Now, with earnings and the future looking very solid, I think it is worth a risk here. I wouldn't buy a boatload, but for a LT hold, I have bought some today for diversification sake.

To: Carl Worth who wrote (9907)	7/24/2002 1:22:19 PM
From: Dave Gore	Read Replies (1) \| Respond to of 16631

Carl, found some positives on the ORB credit situation. This has to be why the stock is down, but they are still rated B+ and things are expected to get much better. I haven't a clue here near term, but LT I feel a lot better. It could go lower if the Big Boys want it lower or quickly recover once people understand the future is very bright. Excepts from recent Fitch Credit Info PR: "Other than these near-term concerns, Fitch believes ORB's overall situation is solidifying due to ORB's strong position in missile defense applications, improving satellite manufacturing performance, significant debt reduction, and solid backlog. ORB has potentially valuable assets and technology, and credit quality could substantially improve if the company executes its operating plan and gets past the challenges it faces in the near term." ORB's position in various missile defense projects is one of the key factors in the company's improving performance. ORB plays several roles in missile defense. First, it provides targets for missile defense elements such as Ground-based Midcourse Defense (GMD), Navy Sea-based Midcourse, PAC-3, and THAAD. Second, ORB recently received a contract from Boeing, the GMD prime contractor, to provide boosters for GMD interceptors. The contract will have two phases: a $400 million development and test phase from 2002 to 2006, and a production phase that could be worth more than $500 million if ORB wins the production contract. ORB will compete with Lockheed Martin for the production phase of the contract, although Department Of Defense officials have indicated that both boosters could be funded. The boost vehicle will be based on ORB's Pegasus and Taurus vehicles, and a total of 70 boost vehicles could be delivered over the life of the contract. The contract should provide approximately $325 million in revenues i n the next three years, giving a well-needed boost to ORB's credit quality".