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

To: Valueman who wrote (4865)	11/16/1998 9:12:00 AM
From: Jeff Vayda	Read Replies (1) \| Respond to of 10852

Vman; Just as an aside, how about a time frame for the window of opportunity re Loral buyout. As for my personal assessment: I am not convinced there is a serious buyer out there. I dont know the ways of the world as far as buyouts/take-overs, but it seems to me, had anyone been looking at Loral, they would have jumped in with both feet in August. I know the overall market was depressed but the hit Loral took was huge. A concern could have come in and offered a 3x return on current stock price (which IMO many 'people' would have taken) and still only paid the market price of spring '98. Poison pill this and anti-takeover clauses that, I think a suitor could have pushed through a 'make you whole again' offer to shareholders. Now the price is up substantially. Two years ago, I was looking to the end of 1998 as the start of serious revenue growth. The green light schedule did not materialize and now the date is more like end of 1999. You are right as to the high capital costs of going forward in Loral's business plan, but we agree the rewards are even higher. The street is currently in the 'show me the money' state of mind. Soon (?) the view will turn back to the more historical 'expectations' game and the promise of what a company can become will drive the stock's price. When that happens, Loral will loom even larger. Bottom line is that while it is nice to dream about a buy out getting the stock price up, I dont think things have the capability to move fast enough to get the deal done (whether friendly or hostile) before it gets out of the realm of possibility. The time is past for a Loral buyout. Now if you want to talk merger, that is completely different. Jeff Vayda