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

To: Sonki who wrote (3256)	5/21/1998 2:53:00 AM
From: dougjn	Read Replies (3) \| Respond to of 10852

Well Sonki, the Moneyline coverage was BY FAR the most favorable to Loral. Caught that on its second go around this evening. Lor/Gstrf are great long term holds in my opinion. The current issue is how to best time this political storm. In my opinion it will get worse before better. It now has real legs. The basic reason why is that the charge against Clinton that has the most high minded juice is his pushing of the campaign contribution laws. (Of course that hardly seperates him, but good gov't types are convinced that this needs cleaning up. I actually tend to agree.) Loral has been caught in all this for two reasons. Its Chairman has been a lifelong Democratic supporter and a big money contributor for some time. Last year he was one of the largest individual contributors to the Dems. He also has an impeccable background building some of America's best Desert Storm smart weapons prior to selling all that out to Lockhead so as to build global satellite communications instead. Second, Loral committed a minor snafu in 1996 when a low level employee released to the Chinese, before clearing with the US government, a review by Loral of the Chinese own investigation of why their rocket carrying a Loral satellite blew up that year. Loral's insurers required the report. (Results of the Chinese investigation, judged probably accurate by Loral: bad soldering in some of the rocket's wiring caused it to go haywire.) Loral immediately told State it had goofed (despite no exlicit regs prohibited copying the Chinese), State told DoD, which got upset, which got DoD to investigate. Which they've been doing ever since, on a slow back burner. (My best guess: the military and Justice beauracrats decided that having super duper Loral expertise reviewing Chinese missile accident causes COULD result in a real transfer to the Chinese in the future, and you can never be too careful, so we should maybe punish them, even though nothing much happened this time, and even though the rules back then didn't exactly say they couldn't hand over the report, cause, hey, it should have been Obvious. And we're talking about potentially a big deal here. Despite a small deal in the actual event.) Mix the two together in the current climate, and you have Clinton allegedly allowing the transfer of missile guidance secrets to the Chinese for political contributions. Secrets which even now may be allowing their rockets to reign down on LA and NY, where before they would have plunked harmlessly somewhere around Midway Island. I say wait at least a few days. Maybe a few weeks. But be looking to get in. Hey, its all naked greed from here. Both Lor or Gstrf are primo buys right now. It's only a question of how much better you can do. Look for more downs from Lor than Gstrf from here. My view. Doug (talk to me re: Tbr over there if you are still interested.<g>)