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

To: Thomas who wrote (2412)	4/2/1998 9:52:00 AM
From: Valueman	Read Replies (1) \| Respond to of 10852

A couple news bits: --G* is calling for redemption of the CPEOs. That adds about 10.36 million total GSTRF shares in if all are converted. It also will add $300 million to the kitty. --Also, the TEMPO sat is in the news again. What will happen???? PrimeStar Partners began its first day as a nationally-focused company by positioning itself for a limited high-power launch and possible spectrum sale. PrimeStar President Dan O'Brien announced that a limited 120-channel, high-power service will debut in two markets - Dallas and Charlotte - on April 17. The "test" product will use a satellite and spectrum at 119 degrees and the sales support of RadioShack. Use of the 119-degree slot could change, however. O'Brien said the company has held discussions with two entities regarding the purchase of DBS assets at the coveted orbital location. O'Brien wouldn't offer names, but he said PrimeStar hasn't spoken with EchoStar Communications, another DBS provider which shares the 119-degree slot. Adding to speculation is the fact that Loral, manufacturer of the satellite at 119 degrees, hasn't formally released the bird to PrimeStar due to technical glitches discovered soon after launch last year. Loral hasn't been named a potential buyer at 119 degrees. Divestiture of 119-degree assets could allow PrimeStar to use a bigger orbital slot at 110 degrees, a move that may become necessary if the company wants to escape increased scrutiny from federal regulators. The Federal Communications Commission and the Department of Justice are investigating the transfer of DBS spectrum to PrimeStar from News Corp. and MCI, which own the 110-degree slot, and TCI Satellite, a PrimeStar partner and holder of the 119-degree license. The two federal agencies could have their separate inquiries wrapped up in May or June, nearly a year after PrimeStar announced restructuring plans. While those efforts continue, O'Brien said PrimeStar won't aggressively push the 119-degree high-power service, which will be aimed at suburban customers outside of the company's typical rural base. Meanwhile, O'Brien said the company's move to Denver is nearly complete. The full transition into a nationally-focused company should be completed in the next 90 days. PrimeStar will have 3,800 employees, several regional offices outside of its Denver hub and three call centers. O'Brien added that PrimeStar will look for high-yield financing between $500 million and $750 million within the next two weeks.

To: Thomas who wrote (2412)	4/2/1998 12:08:00 PM
From: dougjn	Read Replies (2) \| Respond to of 10852

Although you have asked Readware, some thoughts. Although I know that Readware keeps saying there is no demand risk or issue, I think that is almost the only risk or issue. Always have. I think launch risk is really pretty minimal. It's a timing risk. The sats are all insured. They can be replaced. Almost certainly, at least a few won't function perfectly. And therefore it is probable that startup won't really happen until a few months, perhaps a quarter, after projected time. Which will hurt the stock a bit at the time, but its small potatoes. If the demand issue were clear to all, the stock of Gstrf would be at least double its current price right now. The demand question is entirely one of price. It is clear as day to me that if Globalstar could sell regional calls for $.10 a minute and long distance for an addition $.10 all over the world, demand who be astronomical. At Iridf projected rates I'm skeptical. Sure there will be some demand, but will there be enough?? I really don't know. At Gstrf's projected $1 to $1.50 (which really could easily go to $.75 of the local providers got a little less unjustifiably greedy, which I'm sure under the G* system they would if they had to to drum up sufficient demand), I'm pretty confident that there will be at least enough demand to generate a pretty nice share run up from current levels. And it could be huge. But demand is the whole issue. The NY Times article, misleading or not, clearly shows that demand is what people outside of these Readware think dominated threads are worrying about. Not sat launches. It's clear we can do those, with perhaps a mishap or two. So what? Which by the way has been my principal critique of Readware all along. And my repeated subject of inquiry to him. Doug