Welcome aboard DaYooper...
a couple of quick notes to get you started:
GSTRF's market cap of <1B$ is for an ownership of 40% of Globalstar LP, which is the entity that has the 10B MoU per year capacity. The rest is owned by founding partners Loral and Qualcomm and various service providers and strategic partners (France Telecom, Vodafone, Alcatel, China Telecom, Hyundai....)
GLP's Net interest + pref'd divd's is running about 85M$ per quarter. Operating expenses x-depreciation is about 50M$ and depreciation is 80M$ per Q.
So....we need about 850M$ annual revenue to reach EPS b/e, which is why some people like to say G* could breakeven charging less than 10 cents a minute. But that's if we sell each and every one of the 10B supposedly available per year. In the first half of our first year of operation, only about 1.5M were sold, so we're a long way from breakeven.
Also, as you probably already know, G* sells minutes wholesale to various service providers at contract rates around 35-50 cents per minute. So most of the advertised retail rates of $1.00-$1.50, say, goes to the SPs, retailers, various taxes, and what have you. |
