Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 62.88

-0.5%

3:59 PM EST

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To: SKIP PAUL who wrote (6172)	7/27/1999 3:43:00 PM
From: Rocket Scientist	Read Replies (1) of 29987

<That is $2.70 revenue per share not profit.> Technically, you're correct, of course, but the nature of G*'s business is the incremental cost of each new subscriber is virtually zero. The 2.70$ was my estimate for delta EPS per M subs over and above breakeven, so the fixed costs of debt burden, depreciation and operations (which I believe will amount to about 800M$) are already covered. Depreciation expense, IMHO, will be less than your estimate, BTW. The space segment asset basis cost is closer to 3B than 4B, and the constellation life is 7.5 years, min, so depreciation should be closer to 300M than 600M/yr. <why are you using 40 cents per minute when the wholesale rate is 35 cents.> I don't know where you got 35 cents. Various SEC filings have indicated MOUs are wholesaled at rates varying from (I believe) .35-.53$/minute. I used 40 cents average to keep the math simple, though I seem to remember the actual forecasted average is closer to .47/minute.

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