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Technology Stocks : IRID - Iridium World Communications IPO Announced!
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To: S. Peterkin who wrote (1414)3/3/1999 12:16:00 PM
From: RetiredNow  Read Replies (1) of 2693
 
Well, you still need banks backing you if your cashflows are negative, as is the case with Iridium. Otherwise, you can't borrow any more to pay your employees. As to being the only game in town, who cares if you have a monopoly over an industry that is only $10 million in size if you've just spent $5 billion in creating the industry. The $10 million may be a wild exageration, but my point is that Iridium needs to find better sources of revenue than just your jet setters, because there aren't enough of them to build a business on. The only way to attract your mainstream customer is to get those prices down substantially and rework that brick of a phone into something smaller and more elegant.

I wouldn't say the future is bright. I'd say it's very cloudy. I want these guys to succeed, because I love great technology. But I still don't see the economics of this venture working. In fact, I think many institutions are thinking the same thing that I am, judging from the price of the stock.
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