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Technology Stocks : Orbital science (ORB) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (729)	1/18/1998 5:50:00 PM
From: Angelo J Cici	Read Replies (1) \| Respond to of 2394

The bonds were issued to reduce debt! YES! But... Even though the bonds are not callable for a few years, bond holders have the right to exercise at any time before the notes are due. In this case, because the stock price is over the bond EXERCISE price, it is appealing for bond holders to convert at any time... Once the companies earnings are stronger, and the backlog starts coming out into actual revenue, this will not be a problem at all... The high valuation factors in the good things to come and not what is already in place currently. Therefore, many investors, especially the newer ones, will be very insecure and will take their profits before those who believe in Orbital's future as I do. Mohan, also note that on a yearly basis, the company has continued to dilute the stock for what ever reason. It seems that every year, the company has a few million more shares that the previous year. Some of it is due to aquisitions of smaller companies, some from employee exercised stock options, some to raise money for internal reasons, etc... Most of the reason for the dilution is good, but until some solid revenue starts actually pouring in to offset this, the stock may show some volatility. Someday when the satellite services are in place, Orbital will not only make rockets, GPS, and satellites, but they will become more like a utility company collecting SOLID REVENUE on a monthly basis from various subscribers to their systems in place. This does not exist today, not really, YET!!