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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: Rajala who wrote (5185)	6/14/1999 11:12:00 AM
From: CMon	Read Replies (1) \| Respond to of 29987

To quote breakeven's and not outline your assumptions is meaningless. You mention, for example, a breakeven of $0.08 for GSTRF. Without an associated Minutes of Use assumption that number is useless.

To: Rajala who wrote (5185)	6/14/1999 10:04:00 PM
From: RMiethe	Read Replies (1) \| Respond to of 29987

Rajala: "break even" points mean nothing unless and until a business is pushed to that line because of supply/demand factors. That's Econ 101. The point on "break even" between Globalstar and Iridium is that, pushed to the wall, Globalstar could drop its wholesale price to a cut-throat $.14/minute, with Service Providers charging probably $.25/minute for calling anywhere within national boundaries. That's cheaper than cellular in half the world. You can think quite rationally that at $.14/minute Globalstar would not be able to handle its traffic (= sold out, equals breaks even at $.14/minute). Iridium, on the other hand-- nope. Can't cut it. Just doesn't have the capacity to break even at $.14/minute, $.40/minute, $.50/minute. Haven't seen any numbers close to where its price per minute could compete with Globalstar. It's all a question of system capacity. Globalstar seems to have, at the minimum, 4 times the carrying load than Iridium. You can correct me if I am wrong. By the way Rajala-- if you have any information for us on why Globalstar should be dumped, man I seriously wish you would just come out with it instead of all this roundabout knocking on the company's business plan and technology. I am looking to make money too. Just tell me something that you know why Globalstar is not going to succeed. Something that we can all take to the bank. I'm serious too: just let us all know. Cheers.