IRID - Iridium World Communications IPO Announced! Message Board

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Technology Stocks : IRID - Iridium World Communications IPO Announced!

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To: Dennis R. Duke who wrote (1372)	2/23/1999 10:27:00 PM
From: Joe Brown	of 2693

Merrill has an investment banking relationship with Iridium, so their research must be viewed in light of that conflict. So do a number of other firms, though not Morgan Stanley (since Steve Franck is neutral on the stock, they won't give him the time of day, even if his 110 page report on the company/industry is one of the more comprehensive treatments I've seen). It's best, in light of this complexity of these relationships to keep your own counsel. I'm going to go out on a limb here with a prediction (Lord help me): The pressure on Iridium to slash end-user cost will be successful in dropping the handset price to a level competitive with Globalstar, and the per-minute usage cost will also drop. Philosophically, this will be viewed as capitulation, but Wall Street loves it when companies bow to market reality; the result will be a re-assessment of Iridium's business plan and valuation model. The alternative is extinction - "not bloody likely". Then we'll have a real horse-race, Maurice... And everyone will win! Rah, rah...satcom stocks!

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