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

To: Jeff Vayda who wrote (4619)	9/21/1998 12:58:00 PM
From: JMD	Read Replies (2) \| Respond to of 10852

Jeff, Valueman. About one year ago, a number of folks began to see that the privatization of CQ [as in selling off to a pure 'for profit' operator] was likely. Note for those of you who aren't privy to CQ: it is a very complex animal--kinda government regulated, kinda private, kinda for profit, kinda return restricted. Very much a hybrid, and very much a neither fish nor fowl. Been through a series of CEO's and Board Chairmen who were typically ex-government guys and gals who landed a plum assignment following their retirement from government service. Hopelessly simplistic summary, but I think it fairly captures the gist. Also, BTW, CQ never failed to disappoint on the bottom line. Still, they've got some neat space assets so yours truly got engaged in a prolonged discussion with Readware re: Mr. Schwartz swooping in and picking off the prime filet and leaving the bureaucratic carcass behind. FWIW, Readware's opinion was--and remained, though I haven't talked to him recently--no chance in hell. He agreed that CQ had some terrific celestial real estate hither and yon, but that the political morass made the game not worth the candle and that nobody knew this better than Mr. Schwartz. I argued that BS with his political expertise would be just the guy to untangle the Gordian knot, but Readware was steadfast: life's too short and it would take years and the final outcome was simply too unpredictable to tempt BS on any plausible risk/reward ratio. A conference in the DC area 9 months ago or so caused the rumor mill to stir up again: LOR was presenting at a satellite industry confab and a number of folks figured an announcement was imminent--obviously never happened. I post this as historical background only. It occurs to me that LMT always felt that BS got the better of them on the Loral purchase, so maybe this is their way of getting back in the biz, but it sure seems like a very sticky wicket and the market apparently is not in a mood to wait for Congress to sort through a multi-year deal. Valueman, Jeff--do you see it differently? Kind regards, Mike Doyle