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

To: JP who wrote (5248)	6/18/1999 5:43:00 PM
From: Art Bechhoefer	Respond to of 29987

JP - No, QCOM and LOR don't come right out and say they are backing the bonds. Look at the logic instead. If your company owned 34% of the outstanding shares of another company, would you want that company to go into receivership, causing you to lose $500 million? Or would you make sure the company had access to additional credit so that they wouldn't default on their bonds? In fact, both QCOM and LOR have said that they are willing to purchase convertible preferred stock from Globalstar, if Globalstar needs more cash before its service is in operation. (They probably WILL need more cash). The point is, with that kind of interest in making sure the company doesn't go broke, the so-called junk bonds are better than junk!