CDMA, Globalstar versus Iridium, Inmarsat, etc. Message Board

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Technology Stocks : CDMA, Globalstar versus Iridium, Inmarsat, etc.

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To: Maurice Winn who wrote (100)	5/28/1997 6:09:00 PM
From: Maurice Winn	of 381

Okay Maurice, I spotted the mistake. You said 15:1 P:E with $400m profit. That would give a GSTRF market capitalisation of $6bn, NOT the $2.5bn you said. You do get things wrong at times! With 30 million shares after the split today, that means $200 per share [or $400 BEFORE the split]. You also said for the $2.5bn, "Divvy that up among 30 million shares and you get $800 each. Or, in yesterday's pre-split terms, $1600". Sorry, wrong again. $2.5bn for 30 million shares is $80 each!! Talk about silly maths! At a current pre-split price of $54 today, you are obviously missing something quite important if the price will be $400 in 4 years. I wonder what it is? I suppose competition is the answer. There are a lot of people can launch satellites, but with lead times in the realm of years and market demand growing rapidly, it could be a decade before competition erodes margins significantly. By then the sky will be awash in Globalstar satellites and they will be cutting prices themselves VERY heavily. Maurice

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