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

To: JMD who wrote (4851)	11/8/1998 3:26:00 PM
From: Valueman	Read Replies (1) \| Respond to of 10852

Please forgive me JMD! This is the first sign that Loral is doing something about the miserable situation at Orion. It was very promising, and I believe they do provide excellent service, but Orion 1 is somewhere around 50% utilization. That is down from a much higher level. Something is awry there. They are generating virtually no EBITDA(although this quarter was at least above zero), and are draining Loral with interest payments of $20 million+ per quarter. That can't continue. They should have EBITDA margins of at least 50%. Recent info would suggest that some new business has arrived, and when coupled with this Loral release, may indicate a turnaround at Orion.That would be a welcome surprise. With Skynet now accelerating, the FSS side may finally be a significant contributor. Things look excellent now in this part of Loral. Globalstar? Well, that's another story....