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

To: Valueman who wrote (2422)	4/2/1998 1:58:00 PM
From: dougjn	Read Replies (1) \| Respond to of 10852

A few points as well. <<A close read of Loral's 10-K reassures me that the majority of G's revenues are destined to come from local/regional calling.>> Yep. I was really addressing the part of the market which I is addressing. The business traveler, making the calls back to the home office. Even for that chunk I* is questionable, I think. Doug

To: Valueman who wrote (2422)	4/2/1998 3:20:00 PM
From: JMD	Read Replies (1) \| Respond to of 10852

for all who wish to chime in: my tech portfolio is heavily influenced by what I'll call a telecom theme, my way of saying that if the last 5-15 year period was the age of the computer, then the next 5-15 year period will be the age of communications (which means among other things that the CONNECTION of those computers will be more significant than the computers themselves). Okay, so that leads me to want to own companies who are into solving the bandwidth problem, the networkers, and of course the satellite folks. Thinking I am terribly clever, I have avoided actually owning the phone companies (the carriers) because George Gilder has convinced me that the price of a phone call is dropping towards damn near zero, and sooner rather than later so ma bell, among others, is facing a revenue curve that doesn't look so hot. But why am I such a genius to own the companies who sell their stuff to the carriers? If your customer is having a rough time of it, what happens to you the supplier can't be too pretty either. All of this relates directly of course to the pricing discussion regarding G* and I. I absolutely agree with Doug that launch risk, while real, is very manageable. Mr. Schwartz is gonna get the birds up in the air come hell or highwater. (I will admit to some white knuckles around launch time, but in the long run, this constellation will be put in place and it will work. If I understand it correctly, G has pre-sold minutes to carriers at around $.45/min who will then tack on their charges such that the end user faces a price of $.45 + X. I cannot bring myself to believe that people of whatever stripe are price insensitive. I think the biz exec fat cat indifferent to $5.00/min call charges theory is ludicrous (and that's when I'm in a cordial mood). So count me in with those who wish to focus on price per minute, cause I think it's probably the most critical issue on the horizon. And I know I'm preaching to the choir here, but that is also why I think an I* constellation at a $2 1/2 billion upcharge to G* makes the choice of investing in one of the two a no brainer. Comments welcomed. Mike Doyle

To: Valueman who wrote (2422)	4/2/1998 8:11:00 PM
From: Dragonfly	Respond to of 10852

"A few points--you say,"Maybe the result will be that I* will pay off the balking locals in some way." They are--they are offering options on the stock. That is very expensive payment and dilutive as well." How is that a "payoff" when G* is doing the same thing. The local service providers are getting a portion of the limited partnership as part of their deal. Since I* doesn't need local service providers, giving the gov't options on airtime and stock to be used for emergency services is a good idea. Dragonfly