ML, yes, I realize they'd need to replace failures, I just meant they won't replace the whole system. Yes, I was being a bit glib, saying cut all advertising etc. But they don't need the huge and misdirected campaigns they've done.
I've pretty much written Iridium off as a non-threatening, economic and technical failure. Sure, plenty of investors will get the frights over Globalstar too, since not many people understand the differences, so the GSTRF price will be depressed until the Globalstar system proves a commercial success. That will raise the cost of borrowed money, so I hope Globalstar raises the last few hundred million from shareholders. I can borrow at 7%, so that's a better deal for me than Globalstar paying 20% or 30% to a nervous lender. I'm happy to increase my stockholding via a rights issue.
The main issue now, apart from getting Globalstar operating, is that ICO read the writing on the wall and not throw good money after bad. They have got an extreme warning from Iridium. Their investors and lenders are giving them the message. If they are not going to cancel their system, they should at least put it on chill until they get a better idea of where things are going, by watching what happens to Globalstar. If Globalstar also has problems, then ICO surely won't want to be too quick to join the mess.
Maurice |
