Sold about 35% of my Loral position since I think it's going to take longer than I expected for the stock to go up. Because Hughes just sold off its non-satellite businesses, it is now a totally focused, direct competitor to Loral. The Telstar loss was a temporary setback although the Skynet purchase price will be consequently reduced.
Loral still has key strengths going for it, though. SS/L's reputation benefitted as China contracted Loral to build a satellite after their rocket with a Hughes one blew up. See biz.yahoo.com  Also, Loral's CEO expects 2 billion in revenue in 1997 and 2.5 billion in revenue in 1998. (Source: The Heard on the Street column, Jan. 22). Moreover, Loral's intellectual capital is a valuable asset.
Philip |
