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Technology Stocks : Satellite Stocks - USSB, CQ, SPOT, QCOM, etc. -- Ignore unavailable to you. Want to Upgrade?

To: MOGLI who wrote (216)	9/24/1998 10:31:00 AM
From: Noel	Read Replies (1) \| Respond to of 222

Panamsat has some concerns, now that it is generally accepted that the latest generation of Hughes satellites has a design flaw (see galaxy IV, DBS 1, Galaxy 7, etc). Adding to SPOT's problems is the recent launch failure that has left them in the short term without adequate capacity in the CONUS region and no real backup plan, since they've already used their in-orbit spare. Iridium is, in my opinion, a disaster as a stock pick. Even if the technology was working (they still aren't quite ready), they have to overcome a huge startup expense. My guess is that it will be many years before they are cash flow positive. A deal like theirs looks much better to the debt markets where their cash flow is a plus) than it does to equity markets. My guess is that hype created a value bubble that has already sprung a leak. IMO, look for it to be trading around $25 within 12 months... Regards, NOEL