Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 60.49

+2.3%

3:59 PM EST

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To: biffpincus who wrote (10080)	2/12/2000 9:47:00 AM
From: Rocket Scientist	Read Replies (2) of 29987

biffpincus, the .05/minute cost basis should be taken with some caution. Globalstar's CASH costs for operating, interest and preferred dividends has been said by the company to be 500M$/year. The company has also said that the system will have a capacity on the order of 10B call minutes per year. 500M/10B is of course .05. But this figure, first of all, neglects depreciation, likely to run 300M$+ per year. And it will take about 7M users, probably, to consume 10B call minutes/year. So we're a long way from the day when the per minute theoretical cost for a fully loaded system is really relevent. More interesting is how many users (or call minutes) does it take to get to positive (operating) cash flow. The company has said that number is around 550K, I believe.

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