Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 62.25

+6.2%

Dec 19 9:30 AM EST

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To: Jeff Vayda who wrote (8147)	11/2/1999 11:43:00 AM
From: Rocket Scientist	Read Replies (2) of 29987

A couple of thoughts on phone production rates: G* bears (and even some of our favorite bulls like MQ) believe that slow ramp up in production signifies some lack of confidence in someone (not clear exactly who: G, the SPs, the manufacturers?) that there is a market for G. I suppose that's possible, but even if there were absolute confidence by everybody in G* market, the phone production rate wouldn't/shouldn't be much faster/earlier, imo. Why? Because we live in a just in time world. If G* phones were fully productized commodities, and all we needed to make a sale was arrival of a delivery truck, a modern mnfctr would time his production to be very close to the truck's scheduled arrival. Now suppose any number of random events could delay the truck schedule by months...wouldn't a prudent mnfctr wait until most/all of those random risks were retired and he could be reasonably certain of the truck's arrival time? Substitute "G* space segment" for "truck" and you have the situation faced by G* et. al. until very recently. Now consider that the phones are not (yet) fully productized commodities...they're complex little devices with several new interfaces to users and spacecraft that won't be fully debugged without extensive beta testing. Would it be wise to stockpile a huge number of these things, not knowing the extent of rework/scrap you might encounter as a result of the beta testing? If people are upset because they feel BLS implied or promised a faster ramp up than we're actually seeing, I guess that's understandable. But to jump to the conclusion that the slowness is a result of lack of confidence in the market, is wrong, IMHO.

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