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

To: Thomas who wrote (4281)	8/17/1998 9:12:00 AM
From: Valueman	Read Replies (1) \| Respond to of 10852

Thomas: For G's effect on Loral's price, here are the numbers. Loral owns the equivalent of 98,760,868 shares. From Loral's latest earnings, they have 265,800,000 shares.ÿ Dividing gives youÿ .37 G per Loral share(a $1 move in GSTRF adds $.37 to Loral's stock value). Now, what may eventually be more appropriate is to use theÿ TRUE fully diluted Loral share number of 325,385, 262.ÿ That drops it down to .30 G* per Loral share.ÿ That is a more exact number, and I think more appropriate when looking at the significance of G* to Loral's value in the future. I am not sure who underperformed last quarter. My sense is that Orion may have grown revenues, but probably threw in a bunch of expenses related to their acquisition(added to the $12 million they took in Q1) and the ramping up of marketing in new areas like Latin America and Asia. I also think SS/L was short due to the cancellation of the 3 sats earlier and delays in the launch of PAS 7&8, MCI 1, and TEMPO. When these sats launch, which they are scheduled to do in 98, in orbit delivery payments will flow to SS/L and make things much rosier in the second half. I also expect several wins for SS/L to build new sats--Optus, Nahuelsat, Intelsat are all possible. SatMex will also improve. Skynet has only taken over the management of SatMex last week after they finally got a union contract signed. That will lead to $10-20 million in savings there.