Jack,
Just to make thing clear. Mr. S. said $850-$1100 phones are the whole sale price. Operators such as VOD and ATI may choose to sell it for $300 a phone and get more customers to sign on. They are equity holders of G*. That is an incentive. Does Sprint decide to sell I* phone with a discount yet?
Anyway,
Globalstar Reiterated 'Strong Buy' at CIBC Oppenheimer
Princeton, New Jersey, Feb. 26 (Bloomberg Data) -- Globalstar Telecommunication (GSTRF US) was reiterated ''strong buy'' by analyst Timothy K. Horan at CIBC Oppenheimer.
another story,
Globalstar Expects to Have Break-even First Year, WSJ Reports
New York, Feb. 26 (Bloomberg) -- Globalstar Telecommunications Ltd., 42-percent owned by Loral Space & Communications Ltd., expects to have a break-even first year of operation, though the satellite company expects to lose about $700 million in revenue because of the failed launch of 12 satellites in September, the Wall Street Journal said, citing spokesman John Cunningham. The company is slated to begin its satellite network by October, when it will have 40 to 42 of its 48 digital-communications satellites in orbit, and funding for the $3.26 billion in start-up costs has been completed, said field director Frank Guinard. To help pay for the first year of the satellite network's operation, Globalstar will sell $350 in preferred stock and Loral will seek to raise another $575 million, Guinard told the Journal.
Globalstar launched four satellites earlier this month as it tries to catch up with rival Iridium LLC and start a satellite based telephone system allowing users to make or receive calls anywhere in the world. (WSJ 2/26 B5B wsj.com)
Regards,
Brian H.
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