Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 59.96

-4.6%

Dec 29 3:59 PM EST

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To: pcstel who wrote (17812)	10/9/2000 3:53:57 AM
From: Dave Bregman	Read Replies (1) of 29987

GSTRF stock price can jump up very rapidly due to several conditions. First institutional sponsorship has been steady at about 30% with 145 institutions holding the stock without change for the past 6 months. Second, the insider holdings of the company are at about 33% and haven't changed for the past 6 months. Lastly the trading float of the stock is approximately 60 Million shares or 2/3 of the float. The current short interest is huge, at approximately 35 Million shares, 50% of the float or about 20 trading days (3 weeks). Negative sentiment is high and expectations are low. It is only a matter of time before the multiple revenue streams including the subscriber phone business and newer business models such as the in-flight internet and data service and the car navigational systems begin to produce cash. Moreover it is important to note that Qualcomm (QCOM) owns a stake in Globalstar and has invested into the company approximately 600 Million dollars thus far and QCOM has agreed to allow GSTRF to be the sole satellite system licensee of its' latest generation CDMA technology. This in effect will render any kind of competition from any other satellite systems to be meaningless, since the system capacity will be inadequate or too expensive to build out. CDMA currently is the dominant wireless technology and most cellular networks have or are in the process of licensing it, except with respect to the global satellite arena, where GSTRF will be the only licensee. George Gilder is a good source for background information on CDMA and its' importance to wireless communication. In summary, once the fuse is lit and the company begins announcing deals and subscribers, the shorts will try to run for cover, the institutions will add to their holdings and the momentum investors, day traders and public will try to buy shares that won't be available except at much higher prices. The day the snowball starts to roll may take some time, could be any day, but once it starts, this stock will be in for quite a ride.

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