Globalstar Telecommunications Limited GSAT Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 73.75

+4.9%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: JMD who wrote (5219)	6/17/1999 2:56:00 PM
From: Goodboy	Read Replies (4) of 29987

I had many issues that provided the ammunition to start shorting Iridium over a year ago. They fell into two areas. The first was technology and the second was market demand versus cost (both of the service/phone and the constellation operation). The differences between the technology of Iridium and Globalstar have been fully debated at length here and I am sure that needs no further commentary. Where the big debate seems to center is on the ability for Globalstar to effectively market and distribute their phones and service. Secondarily, if a large enough market exists to support the service. My research and conversations with the company have led me to believe that their marketing plan, distribution, market segments and pricing will create demand and allow for a successful service. The flexibility in pricing, the capacity, the alliances and several of their market segment strategies make me confident they will succeed. The issue of financing will stay on the table with Iridiums problems and the ICO, Ellipso, Teledesic fundings still hanging over the market. With the "broadband in the sky" race just beggining, Loral can't afford to put all their cash into Globalstar. On the other hand, Loral could always partner up to attack the promising satellite segments such as wholesale broadband delivery. Globalstar has none of the fatal flaws that I identified in Iridium. I believe a large market exists and that they will effectivley market to it along with aggressive pricing or package strategies with their partners. Everyone in the process has the same incentives, something that Iridium had the opposite of (conflicts of interest). All that said, I think the stock is headed lower and I will buy it within months of the long term move to significantly higher prices. I like to avoid dead money, but I guess if you are a long termer, it doesn't matter.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next