Globalstar Telecommunications Limited GSAT Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 63.78

+6.5%

10:32 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Andmoreagain who wrote (4022)	4/21/1999 1:03:00 PM
From: mmeggs	Read Replies (1) of 29987

You are taking a leap of faith, because NO ONE knows for sure how much demand there is out there. There have been various studies of potential demand, with a reasonable consensus of about 30 million potential users, plus the market for fixed terminals. I can't remember the study specifically I am sorry, but it went on to say of the 3 billion people worlwide without access to dependable phone service, approximately 280 million of them could afford it if it was available. It is not specific as to potential market at various price points, but I will take my chances with the cheapest option out there. I think we are all making a mistake sometimes when we only look domestically to consider potential demand. This is a xenophobic view that I think is ignoring the thrust of G's biz plan. As Bernie stated in the recent conference call, the primary market is for what he called "regional roaming". He used an example of Mexico City -- in the city there is adequate cell coverage, but 10 miles outside the city there is nothing. It is anecdotal of course, but extrapolate that just a little and you start getting impressive numbers. One of I's many failings is a marketing plan that targets outdoor enthusiasts and international travelers. This emphasis has created a perception of Iridium as a luxury rather than as a utility. The price for phones and minutes serves to reinforce this view. I think the plan I have seen for G is comparatively much better, first and foremost because it is cellular providers doing the marketing rather than G* themselves. Take note of the fact that one of the largest shareholders is the combined ATI/VOD -- to the extent they have not wavered in tehri commitment to the system I believe there is a market. No one can definitively tell you how much demand there is out there. Broaden your horizons a little bit and think beyond "there are few holes in US cellular service." Do the math for a hypothetical situation where they even use HALF of the constellation capacity. .35 profit per minute x 6 billion minutes with 25% of that going to shareholders divided by 82 million shares. Give it a 20 or so multiple and you're STILL making 5x you money from here. I know, that's pretty rough, but it works. mmeggs

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next