SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 48.26-5.6%3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: tero kuittinen who wrote (12219)5/10/2000 2:46:00 PM
From: Lu_Xun  Read Replies (1) of 29986
 
Tero:

I'm sorry. I just don't buy the notion that the partners will walk away from G* as casually as MOT walked away from Iridium. The most basic difference is this: Iridium's service just basically didn't work very well. MOT knew this, IMO, and so they realized that additional financing would never solve the basic problem that nobody really wanted a satellite phone service that just didn't work.

But from a technical point of view, GlobalStar's service works VERY well, as almost everyone now is forced to admit -- even the hard core critics. A service that works this well clearly has value -- the only real question is how to get the capital structure into a posture that will allow the company to operate profitably. There are lots of ways to do this. I can only infer from this that the partners will NOT shut the service down and deorbit the satellites, as MOT is doing with Iridium presently.

So the satellite system will undoubtedly survive and operate. Equity dilution or (shudder) cancellation of the existing shareholders' equity, however, cannot be ruled out as a possibility.

For the record: I'm long 3000 shares of LOR and 2000 GSTRF.

Lu Xun
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News