I didn't hear the apparently negative CNBC analyst's comment about Globalstar ... comparing its business model with that of Iridium. However, an important poster on Yahoo's NSATF msg board provided the following, in response:
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Well there was a guy on CNBC slamming Globalstars business model he said it was only good for the specific industries that Norsat is designing Globalstar products for.
The potential customer base for Norsat's terminals includes the banking, petroleum, mining, forestry, fisheries, agriculture, transportation and retail industries; and gas, electric and water utilities. The Globalstar USA voice service is scheduled to be launched in the first quarter of 2000, with Norsat's data services expected to be available in the second half of the year.
biz.yahoo.com
So who knows why some sold Norsat too.
I personally think Globalstar is going to be the sucess IRidium wasn't.>>
Posted by _Panamsat_ at
messages.yahoo.com
I added my opinion after seeing the above:
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Some good reading on Iridium's failures:
newsalert.com
More succinctly:
Norsat: excellent marketing, sales, and technical management.
Iridium: very poor management, generally.
Norsat: very strong R&D track record in diverse technological applications.
Iridium: a global telephone.
Norsat: makes money from its products, services, and (very big) its product development.
Iridium: $5 billion in debt financing out the gate.
Norsat: has had products in the channel over 10 years.
Iridium: never got its product in the channel.
Business model?
Norsat: is a successful R&D, manufacturing, and service company who earned its money "the old fashion way".
Iridium: never earned money and is Chapter 11 and de-listed from NAS.
I see no similarities between the two businesses or their models.
>> Post by me at: messages.yahoo.com
Of course, the negative comment was about Globalstar's business model, not Norsat's. Nonetheless, Globalstar is a partner whose stock price dropped simultaneous with the CNBC comment.
Norsat has a very strong business model.
JMO |
