Very powerfully argued, by an impeccable source; very much appreciated by me and all longs, I'm sure.
But allow me to ask you to attack two of the stronger bearish arguments that you overlooked.
1. Management has lost credibility due to its failure to execute stated business plan milestones. Worse, it's explanations of the failures lack credibility and internal consistency. For example slow ramp up has been blamed, variously, on handset production delays and regulatory delays in opening gateways, but, damningly, the latest 10Q says (for the first time): "(i)
Globalstar has recently commenced commercial service and subscriber demand to
date has been lower than expected" (emphasis added)
2. G* Gateway operators are in many cases artificial constructs, and just middlemen themselves, without their own subscriber base and local marketing clout as might be imagined by your list of G* strategic partners. In N. America, G*USA is a division of Vodafone....it's connection with the new Verizon appear tenuous to non-existent. G* Canada's local partner is not a wireless operator; ditto G* Mexico and G* Brazil. TESAM, a construct of France Telecom and Alcatel, is getting little apparent marketing benefit from its FT parentage. Only in Australia and (maybe) China is the Gateway operator a significant wireless provider.
Again, thanks for your comments which count a lot more for many of us than the likes of George Gilder. |
