Blaine: I was a true believer, and always thought there were reasonable alternatives to your predicition of G*'s demise. I ,and most, were wrong, while you were quite close to the mark.
Globalstar was simple.. The key was they had to Vendor Finance the Gateways to many of the SP's to get them on the boat! WARNING SIGN!!! If they were not willing to put up the 10-15 million to build a Gateway.. They sure as he(( were not willing to put up the 10-15 million a quarter need to market the product properly.
Then, Globalstar started providing Co-Op advertising with the SP's.. BIG, BIG WARNING SIGN!! They lead the horse to water. But, it refused to drink!
As far as liquidity goes.. They have over 420 million in Cash and equivs/short term investments, etc. Another 600 million in VF amounts available. And hopefully we will see the conclusion of the Pegaso deal soon! (As rumored).
I am considering buying at these levels having been stopped out from various levels that I purchased earlier.. Like $14, $13, $10, .. Though I still have some I picked up at around $6.75, and some options! Lots of RISK here!! But, with a Market Cap of 150 million with all that cash laying around, and the margins they command.. I think they will make it!
Regards,
PCSTEL |
