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

To: Valueman who wrote (2020)	2/20/1998 11:30:00 AM
From: Geoff	Respond to of 10852

Readware on E.... ======================= Subject: EuropeStar Date: Fri, Feb 20, 1998 11:03 EST From: Readware Message-id: <19980220160300.LAA13704@ladder03.news.aol.com> A preliminay glance at the Alcatel-Loral collaboration announced yesterday indicates that (1) SSL should have $450 million in revenues over the next two years (it is building the bus for the 3 Ku band satellites), (2) a material increase in Skynet service revenues beginning in 1999, (3) access to Europe for Loral and a substantially higher access for Orion (and thus an upgrade to Orion revenues beginning in late 1999 over and above revenues forecasts already expressed). EuropeStar is a material move for Loral, and I am of the opinion it is going to outflank Celestri's intentions in Europe. At the conference in March the company will probably give firmer quantifications of their expectations for this market. It is very difficult right now to put numbers on the expectations since the customer base has not been dentified, altho the market demand for Star is significant. Although Loral shareholders are probably quite aware of that. We are familiar with Alcatel only from the satellite side of their business-- Alcatel is an enormous company which makes high speed rail trains, ethernet systems, as well as satellites. I have no opinion whatsoever on the company as a whole. As for Orbital Sciences, a fine company but not as richly diversified, it seems to me, as LOR, nor with the growth potential that Loral has. However, I certainly am indisposed towards commenting on the the attractiveness of companies based on their share price. Price follows business, and you need to compare the business of ORBI with LOR and make a decision that way as to which business has a more compelling value for you. I cannot make an opinion as to whether ORBI is a buy at this price level. As for the question on VSAT-- it has that superior DAMA technology, and that looks to put it in good stead for future developments.