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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 64.51+2.1%12:55 PM EST

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To: Jeff Vayda who wrote (15581)8/11/2000 1:31:45 PM
From: literaryfx  Read Replies (5) of 29987
 
>> The SP's will provide financing. Sure they will. Just like they have set up roaming agreements ahead of the
>> gateway roll outs. I will believe it when I see it.

The SPs will provide financing because G* is a cost effective alternative to cellular build out in non-urban areas.

>> If G* needs to change the deal [loan terms], it will be because they are in a position of weakness and
>> concessions will be made. Those concessions will hurt shareholder. Why? Simply because we will not have
>> a voice at the discussions.

(1) Financial negotiations are handled by management, not shareholder approval.
(2) It's the ability, if necessary, to change the loan terms that is important (i.e. remove the hurdle).

>>G* needs users and they need them yesterday. All this talk about things that will happen is missing the point.

Yesterday is history and tomorrow is where G*'s future lies. What we know is that one customer, IFN, has stated
they alone can max the system. To me that says two things: (1) only lower the price per minute as a last desperate
act (which clearly is not the case here) and (2) get the second constellation on the drawing board immediately.

Ken
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