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Technology Stocks : CDRD (CD Radio) -- Ignore unavailable to you. Want to Upgrade?

To: Snake who wrote (406)	11/25/1997 12:59:00 PM
From: Snake	Respond to of 904

The Lehman report should give good rationale for both those that are long on CDRD and those shorting the stock. Since the table for EPS is hard to read: 1997 ($5.00) 1998 ($1.90) 1999 ($4.53) 2000 ($5.19) 2001 ($1.47) 2002 $1.96 2003 $7.28 2004 $9.85 2005 $12.92 FWIW, I am a Loral shareholder who only follows CDRD since Loral has an investment in it. The report does not disclose the financing to get the system running. It seems if you are long on CDRD, you have some time before you invest. The stock reminds me of ONSI which Loral is in the process of buying. Will have big debt to finance or find an equity partner. I could see if this is truly a good idea, that CDRD will be a takeover candidate in 1999-2000, possibly by Loral. But still a few years before all the risks are known.

To: Snake who wrote (406)	11/25/1997 1:12:00 PM
From: Candle stick	Read Replies (1) \| Respond to of 904

In my opinion this review makes abetter case for being SHORT not long: The numbers :(As of 11/24): $19 Revenue (1997): $0 Return On Equity (97): N/A Proj. 5yr EPS Grth: N/A Shares Outstanding: 15.8 Dividend Yield: - - Mkt Capitalization: $300 Mil. P/E - -; - - : N/A; N/A Current Book Value: N/A Convertible: - -Debt-to-Capital: N/M Disclosure(s): A,C In short CDRD has NOTHING in the way of numbers...... The future: I like this statement: "It is scheduled* to be available by Christmas 1999."* ....in other words, nothing to produce any revenue until the year 2000 IF it goes on schedule....... "Strong consumer demand is forecast by several independent market research firms with penetration levels of more than 16% by 2005.".......alot can happen between now and the next 8 years. It seems to me that this is a story stock MAYBE for 3 years from now if AT ALL....... "Our 12 month price target is $39 based on a discounted cash flow".....this statement is a mystery to me!? In one year the company will still have NO revenue, No earnings and more existing stock, ie. dilution......how does this guy figure the stock can more than double??????? "High Yield bonds priced at 15%."....that is a back breaking interest rate, in my opinion...... " Shares Outstanding: 15.8 million".....he doesnt mention that the shares outstanding will INCREASE to approximately 30 million in 2 years..... "CD Radio has produced prototype equipment".....this company is STILL in the prototype phase. Not even a finished product yet! For all you know, it may not work.......... In short, this is an incredibly speculative company with nothing proven, alot of assumptions, no products or revenues for a MINIMUM of 2 more years, and a constant BURN for cash.......way to early to be buying this one , in my humble opinion.....best of luck....;^)