Technology Stocks | Loral Space & Communications


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To: Valueman who wrote (4946)12/2/1998 9:57:00 AM
From: Valueman   of 10851
 
Hughes' in-orbit failures may make the headlines, but Lockheed gets the award for worst in-orbit and on-ground performance. They made the two Echostar sats that are wounded in orbit. They have also significantly delayed the Nimiq satellite for DBS in Canada, and now the Ikonos sat:


Space Imaging Announces Delay of IKONOS 1 Satellite Launch
THORNTON, Colo.--(BUSINESS WIRE)--Dec. 2, 1998--Space Imaging announced today that the launch of the world's first commercial one-meter resolution satellite, IKONOS 1, will occur by June 1999. The launch was previously scheduled for 1998. The delay is a result of a technical problem discovered during the satellite's final verification testing. The problem lies in a satellite sub-system and is being corrected.

''The sophistication of a satellite such as IKONOS 1 demands that every sub-system be tested and operate at 100% capability,'' said John Copple, Space Imaging's chief executive officer. ''Lockheed Martin has an extensive test program to ensure any potential problems are corrected prior to launch. Space Imaging will continue to rely on the judgment and proven expertise of Lockheed Martin to ensure mission success.''

IKONOS 1 is being built by Lockheed Martin Missiles & Space in Sunnyvale, California. It will be launched from Vandenberg Air Force Base, California, aboard an Athena II rocket.

Space Imaging is a leading supplier of space imagery, aerial photography, mapping services, and derivative geographic information products and services. The company supplies these products and services to commercial, government and consumer users worldwide. Space Imaging collects and distributes Earth imagery from the Indian Remote Sensing satellites, the U.S. Landsat, Canada's RADARSAT and the European Space Agency's ERS satellites. In addition, Space Imaging distributes imagery from the Japanese JERS imaging system archive. The company also delivers a broad array of aerial-derived information products through its Mapping Alliance Program.

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To: Valueman who wrote (4946)12/2/1998 9:59:00 AM
From: Jeff Vayda   of 10851
 
Vman:

Unfortunately for me as a 'long', Loral and G* entered the world of politics over the summer. For Shorts and Day Traders this is a great thing. Maybe I'll start playing it short as well.

In politics things are always late to the board and things are played behind the scenes. G* will go down as the parties play with each other - The Democrats against the Republicans in the State, Justice and Commerce Departments, each wanting the other to swing in the wind a little. Now with this wonderful international launch world, the Russians add another order of magnitude in players. The Mob, Russians, Ukrainians and God knows who else is in the mix. The result a great trading play with G*. Add in the Momentum and Day Traders and things are really screwy. Remember the old investment advice: Research, buy and hold, and most of all, dont look at the stock price everyday!
This one will drive you crazy.

Long term, Loral and G* will do fine. Just have to hang on in the mean time.


Jeff Vayda

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To: Valueman who wrote (4947)12/2/1998 10:07:00 AM
From: Jeff Vayda   of 10851
 
Vman:

Lets not forget the I* birds and the next generation GPS. (GPS next gen is now 2 yrs behind schedule and counting. Good thing the current birds [Rockwell] are doing so well. Rumor here is that they may cancel GPS next gen as a result - hear anything along that line?)

Lockeheed has had several birds with solar panel problems and the poor old space station has just received solar arrays from LMC: flatoday.com 


Jeff Vayda

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To: Jeff Vayda who wrote (4948)12/2/1998 10:15:00 AM
From: Valueman   of 10851
 
Jeff:

When one takes care of other people's money, you must pay attention to another bit of investment insight--"Everyone is a long term investor as long as they are getting short term returns."

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To: Jeff Vayda who wrote (4949)12/2/1998 10:18:00 AM
From: Valueman   of 10851
 
Jeff:

I don't know a thing about the next gen GPS.

Were there any Lockheed solar panel problems that were due to the panels themselves? I only know about Echostar IV and the deployment failure. I hope they do not have manufacturing quality problems with the ISS panels--there is a lot of square footage there, and human life at stake!

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To: Valueman who wrote (4951)12/2/1998 11:44:00 AM
From: Valueman   of 10851
 
The September 12 failure of the Russian-Ukrainian Zenit 2 booster with the
loss of 12 Globalstar satellites caused R3 billion of damage in the Russian
Khakassia and Altay republics.


So, that comes out to $155 million. Will it fall upon Loral/G* to pay this
damage? Isn't it a coincidence that it comes out to just about the same
amount as the insurance proceeds?  Nothing like a string of negative surprises to make one paranoid!

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To: Valueman who wrote (4952)12/2/1998 1:04:00 PM
From: Sawtooth   of 10851
 
In a "usual" business, liability costs would also be insured. Is this different in the sat business?

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To: Sawtooth who wrote (4953)12/2/1998 1:32:00 PM
From: Valueman   of 10851
 
That was a tongue-in-cheek comment about that news piece. I am sure this is not a problem, although NOTHING would surprise me about business in the good ole' ex-USSR. The rocket did them in--sue Zenit. This may all be a mis-translation of something out of Russia. It may just be referring to the damage caused to the satellites, which would be around the number quoted. Who knows. If there is something in the Siberian mountains worth $155 million(other than the G* carcasses), I would be quite surprised.

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To: Valueman who wrote (4954)12/2/1998 2:41:00 PM
From: Jeff Vayda   of 10851
 
Vman:

If you are really willing to pay $155 mill for the G* "carcasses", I can be on my way out next week!! Send me a down payment of $1 mill and I'll even call in updates on an I* phone! <ggg>

Jeff Vayda

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To: Valueman who wrote (4952)12/2/1998 2:52:00 PM
From: donss   of 10851
 
You would think in a normal situation that the liability for the damage would fall on the makers of the Zenit, since the Zenit was the cause of the crash. In addition I thought the 12 G* satellites fell on top of some remote mountain, thereby not damaging any buildings or similar. Maybe it cost $155 million to clean up the debris and conduct the crash investigation?

What a wonderful money maker for the Russians: If the launch is a success then charge for the launch, if unsuccessful, charge for the cleanup. You can't lose with this one, you got to hand it to them.

-don

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