Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 62.37

+6.4%

3:59 PM EST

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To: Rocket Scientist who wrote (8144)	11/2/1999 8:22:00 AM
From: Jeff Vayda	Read Replies (2) of 29987

G* has commented that they stepped up to the plate and ordered 300K phones. This was done early on to entice manufacturers to produce a phone. Okay, so why the small current volume? The economies of scale would seem to dictate more than a measly 10k phones a month. If the producers really felt the market was not there, I would think they would pump out the ordered phones as fast as possible and be done with it. Ship them to G* and say "See Ya." Qualcomm is shopping the terrestrial handset division. They are keeping the G* production. Are margins that high to keep the G* phones in the mix with the ASICs and royalty payments? My take on the affair is that the handset producers are confident in the market. They see a good bit of profit ahead and are positioning themselves to support the roll out. In the grand scheme of things, is a quarter lag to ramp up phone production that big a price to pay? They dont seem to think so, and neither do I. Jeff Vayda

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