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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 62.88-0.5%Nov 14 9:30 AM EST
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To: djane who wrote (6090)7/26/1999 9:15:00 AM
From: djane  Read Replies (1) of 29987
 
7/22 Motley Fool on I* "Midyear Losers"

<SPECIAL FEATURE>
July 22, 1999

Midyear Losers
by Rick Munarriz (TMFEdible), David Marino-Nachison
(TMFBraden), and Paul Larson (TMFParlay)

Global satellite phone company Iridium
World Communications (Nasdaq: IRID) has
fallen from orbit in 1999. While offering phone
and paging service anywhere on the planet is a
technological feat, Iridium's marketing has been
a disaster. The satellite phones the company
uses have been in short supply, and the lofty
prices of its service have made Iridium
cost-prohibitive to all but a handful of users.
The company has since lowered its prices in an
attempt to drum up subscribers, but the total
demand still remains far below what was
originally envisioned. Adding insult to injury,
the trouble brought on by Iridium's poor
operating results has been exacerbated by
relatively high levels of debt. With total
liabilities at Iridium's parent company eclipsing $3.5 billion and total first
quarter revenues totaling a scant $1.5 million, it doesn't take a rocket
scientist to see that Iridium is in a steep financial nosedive. The company
has had to renegotiate the terms of its outstanding debt to avoid default,
and there is no guarantee that the company can keep its creditors on hold
for much longer. Unless the company can dramatically change its course
in short order, Iridium may continue to spiral downward.
Loss: 73% through 6/30

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