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

To: Geoff who wrote (1904)	2/11/1998 3:45:00 PM
From: Geoff	Read Replies (1) \| Respond to of 10852

Readware on the recent volatility, looks like it does have to do with some short sellers--- =================== Subject: Recent Stock Price Volatility Date: Wed, Feb 11, 1998 14:56 EST From: Readware Message-id: <19980211195600.OAA01013@ladder02.news.aol.com> I am told by a Wall St. trading desk that "the election of short-seller induced sell-stop orders has caused Loral to drop the way it has" (a direct quote) in the past number of days. "Sell-stop" orders are small orders entered below the market to sell a stock when it has hit that price, and when triggered, these orders have a tendency to depress a stock for a short period of time. Apparently the dealer on the floor of the exchange handling the daily trading has to accept those orders unless forbidden by the Exchange management. As for the email on my $71 year end price target of G: we use a pricing model that tries to be as accurate as possible. I don't think it looks "foolish", to use your words, that the stock is now $60/share. I would rather be low in price targets than high. I doubt very much that the price target of $71/share will change, whatever the price reaches this year. I am not aware that there is a 4 million share short position in the stock of G, and I do not know what would happen if the short positions have to be covered. If there are, as you say, 4 million shares of this stock borrowed and the float is only 33 million shares, I would be interested in seeing myself what happens to the price of G* if those short sellers have the stock called, if they have to cover. As for Valuer's comments on Orion: he seems indeed to be correct in his assessment on Orion's surprizing increase in business activity. The thinness of my numbers for Orion will have to be revisited, but it does appear that Orion's business activity is moving at a pace some $35-40 million higher than I had forecast for this year. I make that inference from the nature of their two recent contract announcements, especially for the asymmetric market. That business deal came a lot more quickly than I had anticipated it would-- I did not expect any Worldcast developments till July. The details of the contracts have not been made public by Orion, so my comments would be only inferential in nature. On the issue of Skynet's growth: it is right now very difficult to identify the percentage growth/transponder in Skynet, because of the different times of the leasing involved, as well as the fact that Telstar 5 came on in full operation in July. It does appear that Skynet's revenue growth is a bit higher than the company's forecast in November, but I cannot be accurate on that till the company makes announcements to all shareholders. I hope everyone read General Lord's comments made at the Space Conference yesterday at Vandenberg about launch capabilities. He is from AirForce Space Command, and I quote him: "The time is fast approaching when space launches will be as reliable and comminplace as air travel". He is right.