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

To: JMD who wrote (5219)	6/17/1999 2:56:00 PM
From: Goodboy	Read Replies (4) \| Respond to of 29987

I had many issues that provided the ammunition to start shorting Iridium over a year ago. They fell into two areas. The first was technology and the second was market demand versus cost (both of the service/phone and the constellation operation). The differences between the technology of Iridium and Globalstar have been fully debated at length here and I am sure that needs no further commentary. Where the big debate seems to center is on the ability for Globalstar to effectively market and distribute their phones and service. Secondarily, if a large enough market exists to support the service. My research and conversations with the company have led me to believe that their marketing plan, distribution, market segments and pricing will create demand and allow for a successful service. The flexibility in pricing, the capacity, the alliances and several of their market segment strategies make me confident they will succeed. The issue of financing will stay on the table with Iridiums problems and the ICO, Ellipso, Teledesic fundings still hanging over the market. With the "broadband in the sky" race just beggining, Loral can't afford to put all their cash into Globalstar. On the other hand, Loral could always partner up to attack the promising satellite segments such as wholesale broadband delivery. Globalstar has none of the fatal flaws that I identified in Iridium. I believe a large market exists and that they will effectivley market to it along with aggressive pricing or package strategies with their partners. Everyone in the process has the same incentives, something that Iridium had the opposite of (conflicts of interest). All that said, I think the stock is headed lower and I will buy it within months of the long term move to significantly higher prices. I like to avoid dead money, but I guess if you are a long termer, it doesn't matter.