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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 62.67-0.9%1:00 PM EST

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To: Valueman who wrote (274)1/18/1998 10:58:00 PM
From: Maurice Winn  Read Replies (1) of 29987
 
Valueman, as you can see, the Skynet satellite was okay, it was the second stage tumbling after deployment which was of concern apparently. I don't have the arcane ins and outs of somersaulting rocket stages, but it seemed to be a worry.

While Readware is widely admired and I certainly appreciate the information put out by Readware, Readware's comments are still subject to ignorance, ooops factor, mistakes, biases and dishonesty.

For example, ummm, let's see. Well, I can't put my finger on anything too bad just now, but there seemed to be undue confidence in their pricing model for example and the contractual situation they have no doubt got themselves into by now with their downstream gateway and service providers.

Readware asserts their studies show sufficient demand to make a bob based on their pricing models. Could be. What if Iridium suddenly comes out live and undercuts Globalstar by filling their system at $0.50 per minute, running flat out day and night, 7 days a week, 365 days a year? Iridium has better control over its costings as it is not so much gateway based, though to ingratiate itself with local ripoff merchants it has agreed to gateway based services in many countries.

Globalstar could have lost control now and might have no mechanism to offer the super low pricing in the first 3 years which I believe they should to maximize use, revenue and profits over the life of the satellites. Readware and others simply assert that they will sell heaps at $1 or $1.50 per minute and depend on Iridium maintaining a higher price. Depending on somebody else's stupidity is a dodgy strategy in my book. Better to simply crunch them into submission by doing it right.

Meanwhile, countdown continuing.

I haven't heard that the launch WILL be delayed, just that the tumbling was a worry and might have lead to a delay until sorted out. I guess tumbling might have happened pre-deployment and that would have been bad.

Maurice
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