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

To: Diogeron who wrote (2972)	5/17/1998 11:07:00 AM
From: Valueman	Read Replies (1) \| Respond to of 10852

Not to stray off the political topic, which, by the way, is a waste of space, but I wanted to take a look at "The Zenit Hedge." For Loral shareholders, it appears that one could hedge the effects of G* by buying one G* put per 600 Loral shares held. For additional insurance, and to factor in the Soros deal as well as dilution from the secondary(which, by the way, is held up in some kind of SEC audit), it is probably best to figure one G* put per 500 Loral shares. That would, in effect, protect your Loral holdings from any complications, be it a catastrophe or delay, of a G* Zenit-2 launch. A SEP60 put would cost you $700, a SEP55, $475. Going a bit further out, a DEC60 put would cost $925, a DEC55 $625. That may be a small price to pay to give piece of mind to those with huge gains in their Loral shares already. To put it in perspective, using the SEP60's as an example, you can ask yourself---"Self, am I willing to spend $1.40 per Loral share to protect myself from a Zenit-2 launch problem???" That question can only be answered by each individual based on his tolerance of risk and his desire for reward.

To: Diogeron who wrote (2972)	5/17/1998 12:22:00 PM
From: Sawtooth	Read Replies (1) \| Respond to of 10852

Diogeron: I know I'm not "usual" but I am psychologically prepared for a 25% market pullback; no complaints if a lesser one would occur. OT: I agree with your assessment of Year 2000 and the likely smelly detritus that would attach to any presidential candidate taking a meaningful stand on it. I'm still in the optimists camp and hope, pray and trust that things will work out OK. I may have a negative cast due to being involved in a major Y2k project and seeing what's going on at a low level and all of the critical interrelationships that, for the most part, no single entitiy has much control over as a whole. Still, the almost "if we don't talk about it, it will go away" approach of our "leaders" is a little disconcerting. <<Anyone want to make any bets on whether or not it is one of the top stories on Meet The Press this morning? I say yes ...>> I say we'll also see some significant press on it now. Regards. ...Tim