SI
SI
discoversearch

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 57.590.0%1:14 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: SKIP PAUL who wrote (6157)7/27/1999 2:33:00 PM
From: Rajala  Read Replies (3) of 29987
 
>That still puts the enterprise value at $6.6 billion
>and 4.7x sales assuming they reach 1 million customers
>using 4 billion minutes after the first year of operation.
>This stock is not cheap! especially considering that sales
>targets appear optimistic. ¨

Quite right, Skip. These figures are very difficult to believe in. The predicted 1M subs is 66 times Iridium's gains so far. Quite an improvement on the performance of the good old I* I would say.

Also the predicted daily usage appears to be somewhat garbage.

As the 1 M subs are probably joining in gradually – as versus everybody signing in the first day – it means that the actual average projected daily usage is 22 min.

In reality, during a vast majority of the days the average usage will be a big fat zero. Only when needed, i.e. visiting the granma in Boise, Idaho for the Thanksgiving the 20 min average daily is going to be reached.

As for the public phones in the most desolate of the Chinese villages, forget it. If you have seen one of these places you quickly realize that these guys are not going to blow their monthly pay on a single phone call lasting 90 secs.

- rajala
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext