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Technology Stocks : ORFR-ORBIT/FR -- Ignore unavailable to you. Want to Upgrade?

To: Louis Cornell who wrote (289)	2/7/1998 5:07:00 PM
From: Mike Winn	Read Replies (1) \| Respond to of 475

Louis, I agree with you about the possibility of an acquisition of Orbit. But regarding microwave testing equipment, the following news gives more importance to those type of equipment. The FCC is now auctioning a portion of the microwave frequencies for wireless communication. ============================================ Going Once...Wireless Auction Makes Spy Game Of Phone Bids By Brian Steinberg NEW YORK (Dow Jones)--Recently, the FCC issued a list of potential new-technology phone companies. Somewhere in this jumble of letters and acronyms is the name of some company that could win big, and in turn, cause problems for established players. Consisting of bidders for what are essentially chunks of valuable airwaves, the list may hold the name of a new phone-service giant. Investors are curious to learn how such a company, if it is formed, will affect the wireless phone-service market. The Federal Communications Commission is auctioning off licenses that allow for the transmission of phone calls through microwaves. Should a single player garner enough of the stakes, companies already building a reputation in the burgeoning local wireless phone service market - namely WinStar Communications Inc. (WCII) and Teligent Inc. (TGNT) - could face new and unwanted rivals. Because of the fierce competition in the wireless phone industry, companies are trying to keep their identities hidden during the bidding so not to tip off their strategy to the other players. Your mission, should you choose to accept it: Find out who wants what. "Everyone is using a nom de guerre to bid," said Simon Rose, a partner at the New York brokerage firm Prime Charter Ltd., "and there certainly are a tremendous amount of bidders." What's up for bid are licenses in the 28GHz microwave spectrum in 493 markets. A company can bid for as many licenses as it wants. Teligent's holdings are chiefly in the 24GHz band, while WinStar's are in the 38GHz band. Rose believes the auction could fetch as much as $4 billion when the dust clears. "It will be fun to see who's behind all the bidding," said Richard Mastain, who manages a $20 million hedge fund for Twenty-First Century Advisors in Park City, Utah. "It's like beachfront property. There's only so much of this." Mastain said his fund holds shares in Associated Group Inc. (AGRPA, AGRPB), which owns a $516 million stake in Teligent. Bidders had to put money down Monday, which industry observers view as the only true sign of interest. Before Monday, the total number of bidders came to 210, with 145 applications accepted for filing, 10 rejected and 55 marked as incomplete. Those who are part of the last category could act to fix their filings and join the ranks of approved bidders. "If someone gets in all top 50 (markets), it's less than good news for Teligent and WinStar, because they're going to have a new competitor," observed W. Jack Reagan, an analyst with Legg Mason Wood Walker who bucked a recent Wall Street trend of predicting sky-high numbers for WinStar stock. Until the results of the auction are known several weeks from now, he said, the company's position remains uncertain. Still, should the auction create a "Balkanization" of licenses, or a hodgepodge of owners, "it would be very good for Teligent and WinStar," Reagan added. "Many different parties would be splitting up all the claims."

To: Louis Cornell who wrote (289)	2/8/1998 11:08:00 AM
From: Louis Cornell	Respond to of 475

According to the company's S-1... "The Company's primary competitors in the microwave test and measurement market are Scientific Atlanta, Nearfield Systems, Aeroflex, System Planning Corporation and Rantec/ESCO."

To: Louis Cornell who wrote (289)	2/8/1998 11:34:00 AM
From: Mike Winn	Read Replies (1) \| Respond to of 475

Louis, You misunderstood my reply. I didn't say that Orbit and IFR directly compete with each other, nor did I say that Orbit has lower growth rate than IFR. I just wanted to point out to you that IFR has some important business coming in the microwave testing area since the approval of the FCC to auction some microwave frequencies for wireless communication. I didn't study IFR carefully but my quick glance at the IFR/Marconi acquisition news indicates to me that both companies are very strong in the RF and microwave testing areas. IFR also specializes in fiber optic test instrument, another fast growing business. Stockwise, I like Orbit better because if its size and so I had money in ORFR. Regards, Mike.