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

To: Jeff Vayda who wrote (4587)	9/17/1998 8:12:00 AM
From: Jeff Vayda	Read Replies (2) \| Respond to of 10852

LORAL AND SCHWARTZ REMAIN STRONG DESPITE MANY SETBACKS, ANALYSTS SAY More than any other U.S. space company, Loral Space and Communications [LOR] has been hammered in the last few months. Even so, Wall Street remains high on the company and its CEO, Bernard Schwartz, according to several analysts. Most of the blows rendered Loral have been tied to a congressional investigation of an alleged transfer of technology to the Chinese by Loral as well as Hughes Space and Communications [GMH] and Lockheed Martin [LMT] (SBN, Sept. 2, page 3). Some members of Congress believe the transfer took place after Loral and Hughes participated in a review of the failure of a Chinese Long March rocket that was carrying a Loral-built satellite. In addition, Schwartz has been accused by Congress of attempting to obtain an export license for launches in China by contributing to President Bill Clinton's re-election campaign. Schwartz has denied the charge. Amid the accusations, Loral's stock-market shares have plunged from an all-time high of about $30 a share earlier this year to below $15 a share. As if this were not all enough, the Loral-led Globalstar L.P. [GSTRF] venture took a major hit Thursday (Sept. 10) when a Ukrainian Zenit rocket blew up, destroying all 12 Globalstar satellites on board. Through these tough times, Schwartz does not appear to have panicked, which has given Wall Street even more faith in him, according to analysts. Schwartz always has been a darling of Wall Street, primarily because he has such a firm grasp on the nuances of the aerospace industry and knows when to acquire and when to divest (SBN, Oct. 15, 1997, pages 6-7). In this crisis, Schwartz has decided to stand pat and weather the storm, and the approach appears to be working, according to analysts. Globalstar At A Glance Founded by Loral Space and Communications [LOR], Air Touch [AII] and Qualcomm [QCOM] to provide satellite-based voice, data and fax service. Still intends to begin commercial launch service before the end of 1999 despite the Zenit explosion that destroyed 12 satellites Sept. 10. Has launched eight satellites, with plans to launch another 24, with spares. Source: SBN Files (Space Business News) defensedaily.com