Lucky888, GSTRF will NEVER sell a single minute. Until you understand that, you are likely to lose money on this investment.
That's a little puzzle to figure out! I know the immediate reaction you might have is 'what the hell does that mean?'. The posts in the past 3 days cover it - quite a few posts. You have to read.
I'm not being a smart aleck. It really is important to their financial position that people get to grips with that point.
On another aspect, you should think of revenue and profit as close to the same thing when 10bn minutes are being sold. The operating cost is very low [as a proportion of the potential revenue]. So don't think of price:sales ratios and then compare Globalstar with utilities. That's wrong too.
On India, while I disagree with the 'priceless' business about family contact, because it is NOT priceless. People will pay substantial chunks of money to maintain contact, but it is not priceless. Nevertheless, I have watched people queuing at STD phone boxes in India where the charges are more than Globalstar for a call within the same region, never mind international. The phones are flat out!
There are a billion Indians*, a billion Chinese*, lots of other expatriates and they want contact. We have friends from India who were working for Alcatel, earning big money in Belgium. It would be no trouble for them to pay for the occasional call from home via Globalstar.
Living an expatriate life can be excruciatingly sad. While separated, people die. If a father dies in India, or course the family will phone the son in San Diego to tell him of his grief. The world is a global village in one way, but in another, leaving the 3D village to live in distant countries with weird cultures is a wrench and links are valuable [not priceless]. $20 for a few minutes is not as important as receiving the call.
Part of the calculus of that separation is that the large financial compensation enables some phone calls, the odd flight home and is worth the cost of separation from family - even the risk of being remote at times of joy or grief. I've done it.
Maurice
PS * = more or less |
