In a time when it is hard to find any equity performing well, Space Systems Loral (NASDAQ: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 (NASDAQ: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 (NYSE: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