Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 61.03

+0.3%

Nov 26 3:59 PM EST

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To: Maurice Winn who wrote (3196)	2/27/1999 9:07:00 PM
From: djane	Read Replies (2) of 29987

More short argument on yahoo thread Top > Business and Finance > Stocks > Services > Communications Services > GSTRF (Globalstar Telecommun.) Help - Add to My Yahoo! - Sign Out Potential G* Buyer: Facts - Cash Flow Shortage Looms by: DoDoFeaster 4484 of 4486 Note the Anger & Desperation of G-longs. Read their messages and note than none have the facts to dispute my reasoning - These people are purely in love with the technology & concept (which are great), but do not understand the business model. One solid attempt was that of InternetBackbone (#4467) who brings up the correct point that the initial WHOLESALE cost is .47, but expected to drop "below .25/min". The precise figure in G* projections is WHOLESALE .21/min in year 3. Note that WHOLESALE is what they expect to charge their resellers. Their resellers have to mark-up this anywhere from 30-100% to be able to stay in business. Alternatives will offer customers RETAIL prices of .20-.25/minute in the year 2. Potential resellers will see that they can't make good money from G* unless G* drops its WHOLESALE prices to the .10-.15/minute range. G* will take these prices because it will have huge fixed costs and debt service obligations & almost 0 incremental cost so it will stay in business. The competition won't be in all markets - it is true that there are some that G* will have to itself. However, these will be insufficient to generate the projected cash flows. The cash flow shortages will not even allow it to fully service debt - equity holders will be wiped out. We will see G* phones in many places - but the species of birdbrain knows a as G*-longus will never be seen on the face of the Earth again....as extinct as the DoDo... Look at a chart, compare my posts & you will see - I have been 100% correct on the fall & the bounceback before they happened. (I challenge this board's birdbrains to find one post of mine predicting a price movement that didn't occur as I said - For you blind moronic idiots who missed my posts when I covered: you must be evolutionarily-challenged ). The analysts following this stock have been dead wrong. Analysts sell stock; they don't buy it. PM's buy stock and we our homework - the little guy is falling for the hype & I do mean FALLING as the chart will show. If you do decide to get in a bit anyway - remember $18-20 is top of the next range & the stock has been so hammered that it is due to test that again. (Crawling bug - I don't follow Loral so I can't give you an opinion. Sorry. Don't regret your loss - unless you sold two days ago just after I posted that the stock was due for a bounceback.) Posted: Feb 27 1999 6:51PM EST as a reply to: Msg 4483 by dayzed521 Replies: View Replies to this Message

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