Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 64.59

-4.4%

3:59 PM EST

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To: Joe Brown who wrote (3063)	2/22/1999 7:49:00 PM
From: Maurice Winn	Read Replies (2) of 29987

Jack, don't forget, the two sold were from one shop, not the whole of Akihabara which probably has several shops selling them. So many handsets would be needed as demonstration models it would take time to fill the channels. It is still early days. If Iridium has 1.5bn minutes to sell and they hack their price to 50c per minute and their handsets to $1000 they'll sell heaps. The handsets would be very profitable at $1000 and the minutes would sell quickly. After a year or two when demand is roaring, they could raise the price to a market level - maybe $1 or even $2 per minute. With operating costs low, that would give $2bn most of which would be profit. Say they just run the system for 6 years then ditch it, they would collect $10bn. The system cost about $5bn, so that leaves a few hundred million per year profit - say $700m. So a market capitalisation of around $7bn is reasonable. Have to go, but how does that sound? Maurice

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