Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 57.64

-8.3%

10:20 AM EST

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To: Gregg Powers who wrote (16018)	8/21/2000 3:47:13 PM
From: not925	Read Replies (2) of 29987

Look down, before looking up ... Gregg: Thank you for your feedback. What if I said: Okay, I accept your upside outlook (i.e. 3x better in MOU, and therefore upside equity valuation of $40 billion possible). Looking at the upside was never my problem for this project/investment. I know the tech is good, it works, and the market will widen as Moore's Law march forward. I also know management and its partners have an outstanding track record (it's been a long road getting here!). It's the short-term downside that holds me back. A timing issue really. As value investors should do, what if we looked down before we looked up? I wonder what do you see? Can you provide some insight here? I am surprised to see PCM, a risk-averse value manager, in this investment at this point in time. Given that the market cap of the equity is $2.5 billion and break-even cash flow seems so far away. As expressed above, this project will remain in orbit in the long-run for sure. But (for me) the issue is when will this business reach reasonable cash flow? And, more importantly, what will happen to existing equity holders between now and then? There is no doubt the project will need a significant amount of additional cash by 4/2001 (just seven months away). So what will existing shareholders have to give up to obtain the additional cash to keep the project moving forward? Looking down first, quantitatively, how do you think about GSTRF?

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