Why Does Loral Continue to Shoot Up? 15 comments
-
Font Size:
-
Print
- TweetThis
In a time when it is hard to find any equity performing well, Space Systems Loral (LORL), absent any real news, has doubled their stock price in the last week. You read that correctly. The stock price has doubled.
Space Systems Loral bottomed on December 1, 2008 at $6.04 per share. Since that time, the price per share has risen to nearly $13. The last real financial news announced by the company was their quarterly report nearly 3 weeks ago. Loral has contracts with Sirius XM Radio (SIRI) for two satellites, and also provides a $100,000,000 credit facility to the satellite radio provider.
Some have questioned the stability of the satellite manufacturer, and even their ability to provide Sirius XM with funding. However, Loral themselves carry a revolving credit worth $100,000,000 with JP Morgan (JPM). Thus, if Sirius XM were to request dollars from their credit line, Loral would simply follow suit and knock on JP Morgan’s door.
So what has happened to cause the big stock turnaround in Loral? Is it a technical move, or is there some bit of news that is about to happen? Only time will tell, but in this current economy, it is good to see an equity make a nice run to the upside.
Disclosure: No Position Loral, Long Sirius XM
Related Articles
|
-
The Seeking Alpha 100
See allThe top 100 stock
market authors
selected for publication
Seeking Alpha 100 » -
Fastest Climbers
Authors with the largestSee all
increase in followers
in the last 7 days
Fastest Climbers » -
Top Commenters
Top commenters,See all
as ranked by their peers
Top Commenters » -
Top Instabloggers
The 100 most active
Instabloggers.-
1
David Fry
-
2
TraderMark
-
3
Don Dion
-
4
Cliff Wachtel
-
5
Mike Havrilla
Top Instabloggers » -
1
-
Top StockTalkers
TopSee all
StockTalkers.
Top StockTalkers »
This article has 15 comments:
The same thing happened to MCI ASkyB, whose birds were eventually purchased by DirecTV even before launch.
Recently however, the founder of SpaceDev, Jim Benson died and his family is selling the company to a private company. Absent this investment avenue Loral probably represents the more affordable publicly traded space company out there. I've seen Loral mentioned on several SPDV message boards.
Speaking as one who used to work at the company, my guess is the ever-persistent takeover rumor. I had assumed their plan was to sell out to someone after they came out of bankruptcy, but that never happened so I sold my position a while back.
That said, I haven't heard any rumors from my friends who still work there about any takeover, and I generally don't have an optimistic outlook for their business in our current downturn. Satellites cost a lot of money to build, launch, and insure. They pay nothing back until they are in orbit. Not a great business model in a time of tight credit. Then again, they don't have a lot of competition these days in the large commercial satellite manufacturing biz. I'll be watching for some news.
Loral input of .1B
Lets see
1.05B - .1B = .95B
Is the estimated savings still .425B
.95B - .425B = .425B
Gee that's almost a third of the original....
Maybe Loral/SiriusXM can give Space Flight Vacations for 50M a pop.
Send a bus of Twenty Celebs in Orbit (10 to cover cost), return .5B
.425B -.5B =.075B surplus
Sorry . . . couldn't resist!
Good idea on the celebs space bus.
First 20 on the bus:
Oprah
Tom Cruise
Matt Lauer
Al Roker
Katie Courek
Richard Shelby
Ty (the obnoxious guy from that home make-over show)
All those yentas from The View (5)
Paulson
Benanke
Rod Blagoyovich
Richard Simmons
Mylie Cyrus
Gerorge Bush
Michael Jackson
Paris Hilton (sorry Paris)
Craig Ferguson (and his accent)
They take off...then something goes horribly wrong, the bus loses it's power and veers off course, pastf the gravity belt and drifts into the nothingness of time and space for eternity. Effectively, these people will then instantly stop jamming the rest of us...
Oprah would count as two currently. . . Unless Richard Simmons gets a hold of her first.
According to Sirius XM’s 10Q:
“…The Loral Credit Agreement contains certain drawing conditions, including a requirement that SIRIUS have a market capitalization of at least $1 billion. Any loans made under the Loral Credit Agreement generally will bear interest at a variable rate equal to three-month LIBOR plus 4.75%….”
Good point. But because Miley counts as a half (or Paris if you count half-wit and that she's kind of emaciated), they offset Oprah's two banger (and then some!). I still need all these people on the accidental space bus to enternity lol...
great idea...
Do you really think SIRI would be getting a loan from Loral? I never have nor ever will....
SHOW THEM YOU DON'T NEED THE MONEY!
I purchased a house earlier this year as a rental property. I had to prove that my income alone was adequate for the loan payments. Then they came back and asked for "incidential" information as to comparable rental fees for the comunity. It got to the point where I was almost not interested in the investment anymore and told the lender as such. It was only at that point (two months), that the attorneys started to shuffle the paperwork between all the parties involved. I believe that the re-financing for Sirius is going to be a very similar event.
To Get Money In today's market you have to meet most of the following criteria:
1) You don't need the money (Other investment opportunities are
available)
2) You can meet loan payments with your Free Cash Flow
3) Your Co-Signer does not need the money
4) You have a Illinois Govenor in your pocket
5) You are part of the financial community (Then no questions asked)
6) Your Assets have to be four times your loan amount
agreed but you forgot #7...
7. Have a printing press of either dollars or shares! lol
She'll be sitting on his punk-ass lap! Quite right. Trash. Scary isn't it?
Hope your trades were good this week. Let's see what Mel and co. have to say. Next week he gets up in front of god and everybody and explains himself. I wish I could be there! This has been a bleeping tragedy on all counts..He's made it twice as tough by showing little concern for his shareholders. Hey, we're tough and can hande it, but a little nod here or there would have been appreciated. Instead, he keeps making bs comments like he just did saying subscribers shouldn't care about losing their fav channels, rather suck it up so he and his board can still have a company to run (so subs can keep enjoying the music that's now been taken away from them, apparently!). WTF is that sh%t?!
Well, no surprise from my man Mel. Have a good weekend!