Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 66.72

+7.0%

Dec 22 3:59 PM EST

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To: RMiethe who wrote (4831)	5/23/1999 9:09:00 AM
From: mauser96	Read Replies (1) of 29987

This is a brand new product, and partners and telco companies are taking real risks no matter what they do. If they order too many handsets, they will wind up eating them. If they order too few, they won't be able to meet the demand. The Iridium debacle must have a psychological impact at the very minimum. They don't know whether it's because of flaws in Iridium, or whether maybe nobody wants satellite phones. Companies don't like risk, especially telecos accustomed to operating in an almost risk free world. Since they don't feel that they understand the risk level , they will be conservative and err on the side of ordering too few. From their standpoint it's probably better to be in the line to get more devices than taking write-offs for equipment that may be defective or has no market. The eventual size of a disruptive technology can't be predicted in advance. The usual polling methods don't work.

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