Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 73.01

-0.9%

Dec 12 9:30 AM EST

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To: djane who wrote (5728)	7/14/1999 6:41:00 PM
From: djane	Read Replies (2) of 29987

briefing.com. 15:45 ET ****** Iridium World Communications Ltd. (IRID) 6 7/8 -1 5/16: Although IRID shares have shed 16% on the session, given the circumstances, investors seem to be remaining extremely calm. According to Motorola Inc. (MOT 94 9/16 -1 15/16), the provider of wireless telecommunications services faces one of three options: Chapter 11 bankruptcy protection, an out-of-court restructuring or liquidation. Motorola, which is a major stakeholder in IRID and guarantor of a substantial portion of the company's loans, also warns that it does not plan to provide any further support to Iridium World beyond existing contractual commitments unless there is substantial participation in an Iridium restructuring by the company's other backers. In response to Motorola's dire prognosis, CS First Boston downgraded the stock from "hold" to "buy." Why only one downgrade? Because most of the remaining analysts already rate IRID a "hold." One firm even rates the shares a "strong sell." One certainly can't blame Motorola for wanting to cut its losses. In the latest qtr alone, Motorola took a $126 mln charge to write-down the value of IRID's plummeting bonds. In addition, the company is already on the hook for more than $1.5 bln in guarantees... But as investors have learned over the recent past, IRID is not an easy short. After hitting a 52-week low of $4.97 per share on June 14, IRID shares spiked more than 200%, as investors betting on company's demise got caught in an old-fashioned short-squeeze. The current Short/Interest ratio on IRID is 4.7 days. -DS

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