Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 57.61

+14.0%

3:59 PM EST

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To: Ok2Launch who wrote (9975)	2/8/2000 12:31:00 PM
From: Jim Parkinson	Read Replies (2) of 29987

It is apparent that the analysts were not pleased with yesterday's conf call. Morgan Stanley's Marc Nabi issued a new report this morning stating that Loral reported lower than expected 4Q99 results from his estimates. He also has lowered his 2000 revenue forecast for G* by almost 1/2 from $200 million to $105 million due to handset manufacturing delays. BS and crew still are forecasting $250 - $300 million. (I hope they are right and Marc is very wrong.) He has not yet lowered his rating on either G* or Lor but that could happen if things don't start to accelerate with G. As he points out, Loral and G are certainly joined at the hip for the moment. The next news that will have a significant impact will be MOU's. Unfortunetely, I don't see them being very stellar in the next month or two. It is apparent that the sp's up to now have been concentrating on testing and fine tuning rather than marketing. I still maintain that only 1% or so of the market even knows about the service so how can you have sales in a market that no one knows about and you obviously can't have MOU's until the handsets are sold. We finally saw a WSJ ad today so maybe things are starting in the marketing arena at least here in No. America. BS mentioned in the conf call that handsets will be in the hands of retailers within a few weeks i.e. the Airtouch mall kiosks and similar retail outlets. Meaningful handset sales won't occur until then. The MOU's will follow so we are looking at summer at the earliest for meaningful numbers. At least that is how I see it in No. America. Hopefully things will accelerate quicker in other markets. Maybe we will be pleasantly surprised with subscriber growth in Latin America and Europe. Maybe even China will wake up. I am still optimistic and hopeful but I am realizing that the progress in the next few weeks will be crucial. I am afraid the street maybe close to losing patience. If and when they toss in the towell, things will be real ugly making today look like a walk in the park. It is definetely the final minutes of the 4th quarter. Time for a sustained drive.

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