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

To: dougjn who wrote (3843)	6/23/1998 8:30:00 PM
From: Dragonfly	Respond to of 10852

Something I found interesting from the LOR FAQ. On 5/7/97 Readware said: Because of the revenue growth indicated, and Loral's trading at currently at less than two times revenues, once Globalstar is launched in October, we believe LOR will receive a revenue/share multiple nearly double its current, or a stock price of $27/share by the end of 1997. That is a conservative revenue/share multiple estimate, and with earnings and revenues becoming more "visible" in 1998, we expect LOR to command a price of $43 by the end of 1998 Dragonfly

To: dougjn who wrote (3843)	6/23/1998 8:31:00 PM
From: Dragonfly	Respond to of 10852

I am not at all unhappy about their current richness. <gg> What, don't you want to buy more? Thanks for enlightening me about the premiums. Dragonfly

To: dougjn who wrote (3843)	6/23/1998 11:04:00 PM
From: ccryder	Read Replies (1) \| Respond to of 10852

<<That's because one can sell them with say six months to run and still retain much of the time premium.>> Well, lets hope there will be little or no time premium in the 2001 LEAPS 6 months prior to expiration. The reason will be that they <hopefully> will be deep in the money at that time. The last time I did my calculations, the 2001 25s were still a good buy. Whether to sell 6 months early will be a source of some agony, for me at least. They will have become long term and the issue will be one of timing, just like short term calls, but with volatility more like the stock.