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Technology Stocks : CDMA, Globalstar versus Iridium, Inmarsat, etc.
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To: Larry L who wrote (153)6/17/1997 2:39:00 PM
From: Larry L   of 381
 
I attended an investment fair in Chicago over the weekend and listened to a presentation by the editor of the CA Technology newsletter. He is very high on tech companies that are spending loads on R & D. However, he is very cautious about the satellite communications companies. He feels that with so many competitors entering that profits will be squeezed. Personally, I did'nt feel that he had checked it out very carefully. Iridium and Globalstar have it all to themselves for at least 2-3 years during which time they will gain a firm foothold. In addition, what they learn during those 2-3 years could keep them well ahead of other "voice communication" satellite owners for years to come. Demand is enough that should costs come down enough there will be more than enough room for several competing firms.
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