TMann, here you go, here's what Mr. Powers thinks.
<To: BobRealEstate who wrote (17344)
From: Gregg Powers Monday, Sep 25, 2000 2:06 PM ET
Reply # of 17720
Boy...talk about turning a silver lining into a sow's ear.
Last I checked, $56mm-$68mm still constituted real money.
Last I checked, public companies like Alcatel, Vodafone, Qualcomm and Loral were still governed by Boards of Directors that would most likely take a dim view of a 'cosmetic' investment. Do the pundits on this thread really believe that Vodafone management said, “let's throw Bernard a bone...give him a few million dollars...so he'll stop calling?” If so, I suspect that there are several psychotropic drugs available to treat your condition...
...Vodaphone, Elsacom, TE.SA.M and China Telecom are key partners NOT for their equity contribution, but because these companies represent a significant component of marketing complement that is selling the service worldwide. Were there no demand, were the business plan as flawed as the pundits suggest, I can envision no reason why these service providers did not cut and run right now. This is not nuclear physics....
While the financial commitment is material, I believe that Globalstar management perceives the requirement to be largely prophylactic at this juncture. I recognize this to be a balancing act; too much capital equates to unnecessary dilution while too little will be perceived as a statement of limited confidence.
I think the correct conclusion is pretty simple. The partner's came through with a meaningful incremental financing...before it was necessary and in advance of the business demonstrating trends that would necessarily support the investment. This is good. For investors looking to this financing as a stake to drive through the heart of the shorts, the deal most likely is not going to be enough. For investors looking to management to undertake a prudent financing, mitigating financial risk while sustaining an acceptable level of dilution, the deal is a statement of profound confidence. I cannot understand why people view the financing in such a binary fashion; one should logically presume either management believes the current transaction sufficient to allow for proof of concept or that the partners will sign up for another round as necessary.
For what it is worth, we believe Bernard delivered a businessman’s financing rather than a heroic gesture. We are delighted.>
Pretty clear. |
