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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 56.92-10.6%Dec 17 3:59 PM EST
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To: Rocket Scientist who wrote (15193)7/31/2000 9:49:15 PM
From: Rono  Read Replies (2) of 29987
 
RS,

When comparing Nextel to G* one must consider Nextel's ability to successfully develop and execute a business plan to G*'s rather dismal attempt at marketing and distribution. Globalstar's business plan almost seems like an afterthought and a make it up as you go nuisance. They may have built and launched an engineering marvel, but without a clear vision on how to market or distribute their product, financial success is in serious peril. Quite the opposite of Nextel who will be profitable in 2001 and generate about $10 billion in revenue by 2002.

While it's to early to sign G*'s death certificate, the mortician is lurking. If they don't realize a significant increase in subs and MOU within the next quarter or two, bankruptcy is inevitable, IMO. Additional financing will only prolong the agony of G* who either has a flawed marketing plan or no market. That would be tantamount to acquiring more dollars only to bet on the same 300 pound jockey in a horse race.

BTW, in researching Nextel did you discover that in the first three months of sales, their worldwide phone, with coverage in 70 countries, sold 20,000 units at an ARPU of $160?

I think consumers are voting that worldwide terrestrial coverage is adequate for most needs.

Ron
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