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 62.25

+6.2%

Dec 19 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: djane who wrote (4615)	5/14/1999 11:20:00 PM
From: Andmoreagain	Read Replies (1) of 29987

djane: I can confirm that Iridium is cutting not only the per minute cost of using their system, but the monthly access fee as well. From a user standpoint, this is great news, since cost is definitely an impediment to "powering up" the phone. From an investment standpoint, Iridium is a moot point, as we all know... Here's a question likely to produce divergent replies: Given the $600 million financing need Globalstar has - to get to service initiation - and the added $600 million to get to cash flow breakeven, is Wall Street's preponderance of "buy" ratings for Globalstar somehow fee-motivated? I'd bet a couple bucks that it is... Take away the potential for syndicate business, and how many "buy" ratings would there be? Globalstar needs 1.3 million subscribers to generated positive EPS. Let's see how Iridium's lower prices increase their subscriber base, then let's see - if a substantial increase does not occur - how well Globalstar ramps up. Getting a remote Indian/Chinese/Brazilian village to adopt Globalstar might be easy if the local SP is willing to forego some profitability to subsidize the endeavor, but even assuming that...how much marketing expertise does a third world SP have? Enough to generate 1.3 million users? If shortfalls occur, they won't be made up by travelling business persons (as Iridium discovered). And if there are a million oil company personnel just itching to grab a satphone, I'll be amazed... OK...send the hate mail. I'm ready.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next