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

To: djane who wrote (4392)	8/28/1998 8:20:00 PM
From: djane	Read Replies (2) \| Respond to of 10852

Letter sent to James Cramer [Comments welcome] Hi James, After carefully reading your comments in the Thursday AOL chat (as I read all of your excellent writings), I have one comment and wonder what you think. You continue to pound the table for AOL and YHOO due to the rise of the Internet as a new media form. No problem with that premise even though I think your ties to both AOL and YHOO and success of thestreet.com as running parallel to the success of these 2 companies may add to your bias. I'm also a big bull on AOL and YHOO for the long-term. But, when you say GSTRF/LOR are bull market stocks and need that optimism to do well, I really don't understand the difference between them and AOL/YHOO. AOL/YHOO are the ultimate stocks which depend on bull market optimism that the Web media/eyeballs model will eventually prove profitable. GSTRF/LOR are building the infrastructure for worldwide communications/Internet via satellite on which AOL/YHOO/TSC will depend in the next century. GSTRF has already raised the $3B required for the buildout and, thus to my mind, doesn't depend on the vagaries of the bull market. In an interesting irony, I would argue that the global economic difficulties and cancellations/slowed funding of competitive projects has increased the chances of success for GSTRF and LOR. I just don't understand how GSTRF relies on optimism more than any other speculative long-term stock (e.g., AOL/YHOO). I would enjoy a more detailed explanation on this interesting theory which I believe you haven't expanded on in any columns. djane

To: djane who wrote (4392)	8/28/1998 9:33:00 PM
From: Bernard Levy	Respond to of 10852

Hi djane: Cramer's comments are not unique to LOR/GSTRF. A few weeks ago, he was also calling CLECs bull market stocks because of their need to access capital markets. He had invested in ICGX and MFNX, got burnt by ICGX, but proclaimed MFNX a much better investment because it had profits (I would need to check this fact). If he held MFNX during the last few days, he got burnt big time. Cramer is primarily a trader. So he jumps into stocks without fully understanding both the risks and fundamentals. Then, when he gets burnt he is one of the worst cry babies on the block. I think that his assessment of LOR/GSTRF is based on his recent CLEC experience. Best regards, Bernard Levy