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Technology Stocks : Primestar/TCI Satellite (TSATA) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Bramhall who wrote (80)	9/24/1998 10:22:00 AM
From: JDCFA	Read Replies (1) \| Respond to of 442

Steve, I agree, TSATA stock action doesn't constitute a buy on technical grounds. There is a large seller in the stock. Unloaded several hundred thousand shares in recent days. When this gets cleaned up, hopefully soon, action should improve. Cash flow problems and New pricing structure. TSATA investors must realize that this company operates with one leased satellite from GE. That's it. Dish has a very expensive constellation and debt to prove it. No cash flow problems at TSAT. $575mm worth of debt relates to the TEMPO assets which are current NON REVENUE PRODUCING ASSETS consisting of two satellites and 11 transponders at 119d all together worth in excess of $575mm. I can no stress enough how important this is and how it is not mentioned in any analyst report. The medium power business using the GE satellite can offer the LOWEST COST of anyone in the business. If big mouth Charlie Ergen tries to match on cost he will go broke long before Primestar. In other words the Primestar balance sheet is currently bloated with $575mm of debt without receiving the benefit of revenue. CONCLUSION: We are at the trough. We own high powered assets, but we don't receive high power revenue. Once DOJ issue is settled, Primestar probably sells TEMPO uses $$ to finance 100d assets. Acquires C-Band assets which are wildly cash flow positive. Medium power assets are cash flow positive. This cash flow + customer base of approx. 3.4mm subscribers will finance the move into high power backed by Rupert. WHY DO YOU THINK CHARLIE SPENDS MORE TIME IN DC THAN DENVER. HE'S SCARED SH__LESS of this combination. If times get tough and prices go down, he'll be the first to get blown out. PS Canal + story surfaced again this morning. Rumor has it deal soon.