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

To: RMiethe who wrote (5301)	6/22/1999 8:36:00 PM
From: Goodboy	Respond to of 29987

I guess the Lehman guy doesn't know anything about Iridium's hopes to raise more money. Sucker in other players to pony up more cash because they have lowered their phone prices and rate plans. I guess it does not matter to Lehman if they actually can generate a viable business at these price points. One that can build enough subs with usage and margins that will pay off billions in debt and debt service in the coming years as the failure rate of the satellite array increases (needing to be replaced under the super expensive Motorola contract). The engineers were pulled from Teledesic to figure a way to extend the life of the birds (Globalstar's birds have a longer life). I have some bad news for those rocket boys, it ain't gonna happen. This is all a big joke. Iridium equity is worthless and nobody wants to face it because the ramifications are too ugly. 85 percent of the equity holders control gateways and are responsible for marketing the service and securing operational aspects. Wipe them out and try to run this service. Everybody is a loser here. The bond guys have already figured that out. The only players that are remotely covered are the banks with Motorola or asset guarantees in place. Even the bank paper that is backed by Iridium assets is being offered at a discount. But this brain from Lehman thinks the stock should be at $30. I guess his bonus will be based on any new finacial deals that Iridium is involved in that Lehman will be advisor on. The stupidity level is shocking. Nobody ever said that Motorola and the equity investors would let a $5 billion dollar bet go down the drain without a fight. Just that they should understand they are fighting a losing battle against time (sat average life), money (over 1 billion needed over the next 18 months), competitors (Globalstar is months away from a launch and premarketing), performance/technology issues (time will prove what those are) and a negative corporate image. Let them have thier fun with Iridium stock. Some people will make money trading the ups and downs. That's not my bag baby. Iridium will end down, but not without a fight. It is this fight along with other factors that might pressure Globalstar down futher. We shall see. By the way, not one of the bozo's had even downgraded the stock to neutral until almost April and most waited until May or June. They are all pretty much worthless, although I do know a couple that our good. Doubt their ratings reflect what they really think about the stocks or the companies they cover. So goes the reality of Wall Street!