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

To: Valueman who wrote (5282)	2/5/1999 5:27:00 PM
From: jopawa	Respond to of 10852

CDRD,talking about a delayed reaction to known news. New York-based CD Radio (CDRD) said the launch of three of its satellites and the development of its chips sets have been postponed. Shares of the company slid 7 1/8 to 25. The company, in a filing with the Securities and Exchange Commission Wednesday, said Loral Space & Communications (LOR) has pushed back construction of the satellites. Launch dates have been changed from November 1999, December 1999 and January 2000 to January, March and May 2000. CD Radio cited the shortage of Proton launch vehicles, used to put the satellites in orbit, as the reason for the delay. Now CD Radio expects its subscription-based satellite radio services to be available in the fourth quarter of 2000, missing previous target of April 2000. Another disappointment for the company came when Lucent Technologies (LU) delayed the delivery of integrated circuits, or chip sets. CD Radio uses the chip sets in its consumer electronic devices, which receive the company's broadcasts. Delivery is now expected by June 2000 instead of December 1999. As a result, CD Radio said development costs are expected to jump to $18 million over the previously anticipated $9 million. In addition, C.E. Unterberg, Towbin said in a research note that the chip-set delay could "necessitate a soft rollout in the fourth quarter 2000." Unterberg said it appears it will take another four to six months for the chips will be fully integrated into CD Radio's receiver and said the company's "early entrant advantage" over competitor XM Satellite Radio is "potentially eroded." Yet Unterberg said it believes the two companies will share the market about evenly. CD Radio was cut to "long-term buy" from "strong buy" by Unterberg's J. Armand Musey and William B.F. Kidd. Furthermore, Dow Jones reported that Friedman Billings Ramsey analyst Riyad Said noted that CD Radio will be making payments to Loral for the satellites before providing service to its customers. "The delay in the launch and the associated costs [put] pressure on the stock in the short term, but I don't see this as having any fundamental impact in the company's service," he added. Lehman Brothers, meanwhile, lowered its 12-month target price for shares of the company to $55 from $76. But it reiterated its "buy" rating on the stock. CD Radio is involved in the development of subscription-based satellite radio systems. These systems are used in broadcasts on 30 channels. Shares of Loral Space & Communications fell 1/4 to 20 3/4, while Lucent's stock slipped 3 to 99 7/8. Janet Haney is an online reporter for CBS MarketWatch.

To: Valueman who wrote (5282)	2/5/1999 5:28:00 PM
From: jopawa	Respond to of 10852

Reuter's take: Friday February 5, 4:46 pm Eastern Time CD Radio stock falls on broadcast delay NEW YORK, Feb 5 (Reuters) - CD Radio Inc. shares tumbled sharply Friday after it said its radio network, the first expected to deliver music and other shows coast-to-coast, would not start broadcasting until the fourth quarter of 2000, six months behind schedule. The stock fell nearly 20 percent, or 6-1/4, to 25-7/8 in heavy trading. It was one of the day's top losers on Nasdaq. The revelation, contained in a filing with the Securities and Exchange Commission, prompted Lehman Brothers to cut its price target on CD Radio shares to $55 from $76, although it reiterated its ''buy'' rating on the stock. CD Radio has a system of 100 stations of commercial-free music and other programming that it plans to beam to U.S. motorists from four satellites. It will charge $9.95 a month. Because of glitches in computer chips as well as satellite launches, CD Radio said it would kick off the system in the fourth quarter of 1999, instead of the second quarter as originally planned. Costs associated with the posponement jumped by $175 million to $1.140 billion, the company said in its SEC filing. One reason behind the delay is that Loral Space & Communications Ltd. (NYSE:LOR - news) does not have enough satellite launchers, called ''proton launch vehicles,'' CD Radio said. That set back the time all four satellites could be airborne and working until March 2000. On top of that delay, CD Radio said that it would not be able to get enough chipsets from Lucent Technologies Inc. (NYSE:LU - news). The chipsets, which are installed in the cars to pick up the broadcast, require more development than the companies originally had expected.

To: Valueman who wrote (5282)	2/5/1999 6:05:00 PM
From: mmeggs	Respond to of 10852

I also spoke with IR today who would onyl commit to "We hope to launch in mid-February." Explicitly stated that any launch dates have not come from them and they will provide notice via press release. Can't say I walked away from the conversation feeling happy. FWIW, mmeggs

To: Valueman who wrote (5282)	2/5/1999 8:05:00 PM
From: Joe Brown	Respond to of 10852

Regarding Globalstar launch...<we will know>. That's beautiful - IR at Loral/Globalstar is so tight-lipped (or tight-something), it's just grand having the entire Web available for doing end-runs around them. Thanks, Valueman!