Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 62.37

+6.4%

Dec 19 3:59 PM EST

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To: Rocket Scientist who wrote (8150)	11/2/1999 3:59:00 PM
From: Maurice Winn	Read Replies (1) of 29987

RS, you are certainly right that stockpiles of electronic devices when technology changes in weeks rather than months would be a bad move. But the just-in-time low inventory idea is more important in low margin business when warehouse costs and capital sitting doing nothing are significant. With Globalstar handsets, the cost is a few 10s of dollars [the marginal production cost] and the rest is all profit. So it is far more important to ensure all the customers who want one can get one than to save a bit of storage cost. The main issue is probably the technology factor. Rushing to stockpile handsets with glitches or slightly old software would be a shambles. That's the just-in-time factor which matters in handsets. [Maybe I'm being a bit pedantic here - as I agree, no stock is good stock and the handsets should be sold direct from the end of the production line to the highest bidder]. Okay, enough rant from me! Maurice

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