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

To: Angelo J Cici who wrote (1830)	2/1/1998 2:32:00 PM
From: Valueman	Read Replies (1) \| Respond to of 10852

Right on Angelo!!! I mistakenly purchased Loral thinking it had the biggest backlog--I am a fool!!! That is the sole reason to look at Loral, by the way. The sat manufacturing business is a high marging, cash generating gem. Unfortunately, they had to get into those other low margin satellite communication businesses. You are right on another point too--obviously, more people want to side with ORBI(whatever that means) since the company is almost debt free(I guess long term debt as a % of capital of 17% is almost). And look at that ROE for ORBI---it is 6%(WOW). That must be some high margin work they do. I am in Angelo!!!! To hell with Loral!!!!!

To: Angelo J Cici who wrote (1830)	2/1/1998 10:52:00 PM
From: Digitom	Respond to of 10852

Angelo, after liquidating my shares in GMH, I researched ORBI, being attracted by their more modest PE. However, a couple of things trouble me about the co. First, it looks as though the US Govt. accounts for 45% of their revenues, hardly a high growth customer. Secondly, it looks to have been growing at about a 20% rate, and is projected to continue at that rate. At 33/share, that is 39 times estimated '98 earnings. Where do the prospects for share price appreciation lie? Most holders of LOR would not hold those shares if mere 20% growth were expected. Thirdly, it looks as though 2 more years of bleeding are expected at ORBCOMM and ORBIMAGE with losses widening through 1999. Also with a backlog of 3.0 billion, don't you think they are placing too much emphasis on low margain construction businesses? And in a not so recent post, did you really cite SPACE BURIALS as one of ORBI's growth business? I'll bet other satellite companies are just dying to enter that market! Looking forward to more witty banter. Probably a psychological release of some kind, eh?