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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Uncle Frank who wrote ()4/18/2000 4:21:00 PM
From: Investartist  Read Replies (2) of 54805
 
Globalstar/Future Gorilla

I think Globalstar is a future potential gorilla with a virtual monopoly on satellite telephony. George Gilder ranks it as one of his top two picks.

Right now, the analyst community is incorrectly making comparisons between Globalstar and the now defunct Iridium. This has temporarily depressed the stock price even though only positive developments have occurred for Globalstar. I know of no negative news. Unlike Iridium Globalstar has the following features among others:

1. Superior Qualcomm CDMA technology. The voice quality is comparable to ground cell phones whereas Iridium had a distinct echo delay.

2. Globalstar is being marketed by many service providers throughout the world including Vodofone, Elsacom, China Telecom.

3. Globalstar's phones are a fraction the size of Iridium's brick sized phones and the second generation phones have already been seen to be about 5 inches long.

4. Globalstar, unlike Iridium, can handle data transmission like e-mails and Internet connections.

5. Globalstar can handle remote telemetry needs. For example I heard from another poster that Chevron may be exploring the use of Globalstar/Qualcomm telemetry to monitor oil well production.

6. Globalstar was founded by Qualcomm(A gorilla) and Loral. Additional founders include Vodafone, Daimler Chrysler and China Telecom. All these companies benefit by the success of Globalstar.

7. In the Us for example, Vodafone Airtouch now called Verison is the sole service provider of Globalstar in this country. Only they can offer their customers totally seamless wireless coverage.

8. The Globalstar phone is designed to seamlessly work with your ground cell service until you go out of cell range, then it hands your connection off to the satellites.

9. Globalstar tracks you with multiple satellites at once virtually eliminating interference with ground objects.

10. It has been suggested that in the future all cell phones may be satellite enabled to allow you no area you are not covered unless in a tunnel. Then even some ground cells will cover you in the tunnels.

11. Globalstar's satellites are designed to last twice as long as Iridium's were making maintenance much lower.

12. Globalstar's constellation of 48 satellites can be upgraded on the ground at the ground stations unlike Iridium.

13. Globalstar's system could generate net profits of $1.5 billion with about 10 million users.

14. Globalstar is the only satellite telephony company to have George Gilder's highest recommendations

Etc.

Happy Investing

Investartist
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