DownSouth: While you are thinking and in the cold light of day - re: Globalstar's bankruptcy [sic.]as a drain on Qualcomm.
To: Jim Parkinson who wrote (13563)
From: Investartist Thursday, Jun 15, 2000 8:51 PM ET
Reply # of 13583
Dear Jim Parkinson,
Thank you for the very reasoned and intelligent post. I agree with everything you said. In the last week, I have had a dealer say sales were increasing 30% week over week. Another told me that this bankruptcy talk is poppycock, etc. Opening up Carribean will be a big boost. We heard GMPCS say that they could easily sell 5000 phones there for boats.
As to minute prices I too have previously stated that I think that the 30% price reductions currently in effect in US until July 15th will become permanent. This was the opinion of one of the sales managers I talked to last week. I don't know that they will become lower because we want to keep a healthy profit margin and Globalstar is a special service that no one else can provide. They will need to determine the proper price for the market I don't know if it is lower but there is a proper equilibrium.
I see tremendous potental when data service becomes active. In a conversation I had with George Gilder this year he said that he felt that the really big potential would be realized with data. He feels that the backers of Globalstar realize this and will not be satisfied until all the many potential uses are demonstrated and marketed. This is why in his opinion they will give it any support needed to realize this enormous potential.
Sincerely,
Investartist
P.S. Just today George Gilder posted, reaffirming his belief that Globalstar will succeed and be a "ten bagger or greater".
To: Maurice Winn who started this subject
From: lramzi Friday, Jun 16, 2000 10:16 AM ET
Reply # of 13586
From G. Gilder Telcosm Lounge:
re: G* Media Coverage
posted to: Tetherless Telecosm
poster: Nerve
posted: 6/8/00
Coverage of G* in the financial press has generally been neutral at best for several months. Some writers damn with faint praise while making comparisons to Iridium, and others make more direct negative comparisons to Iridium. There are several possible explanations for this; one, in addition to simple herd mentality, is that it is the easiest course for a financial writer. It is very safe and easy to deride Iridium after it has failed, and it takes less effort to lump G* in with Iridium than to actually do some research.
In some cases, could media management set the tone? Consider the coverage from Bloomberg: every article I have seen about G* contains the phrase, like a mantra, "...the only satellite-telephone company that hasn't filed for bankruptcy or shut down". Mr. Bloomberg has, to my knowledge, never filed for bankruptcy (but he may shut down at times).
I'm sure that another factor is that many of these writers live in and around New York, maintaining a world view that is, shall we say, longitudinally limited. "If I don't need it, and my friends don't need it, then who needs it?"
The media and analysts have determined that there is a high probability that G* will fail, and the stock is priced accordingly. Actually, the probability of failure is low. When it becomes clear - perhaps within nine months - to the most ardent detractors that it will not fail, the stock will soar.
Louis |
