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Technology Stocks : IRID - Iridium World Communications IPO Announced! -- Ignore unavailable to you. Want to Upgrade?

To: CMon who wrote (2026)	6/23/1999 6:16:00 PM
From: Goodboy	Respond to of 2693

This is all about buying time to salvage revenue from the system. If you were to restructure the company right now by wiping out the equity, you would have a little problem. The problem is that 85 percent of the equity holders are also strategic partners that are running gateways, marketing and selling the service. How motivated and happy will they be to work for the banks, bond holders and Motorola when their equity stake has been wiped out? Answer is they won't. That is why this is so ugly. Everybody has leverage in this game from an operational standpoint, even if they don't have it from an capital structure standpoint. For the moment, a large amount of dillution will occur for the equity holders. If they can be pacified knowing the system cannot keep going without new capital, then they will play ball to a degree. This is a balancing act. Keep them happy, milk the system by bringing on new subs at low prices and flat rates, work off razor thin margins, but pay interest on the debt, pay Motorola what they are owed and make an attempt to get bank debt covered. Equity will eventually be wiped out, but not just yet. I think it is amusing that an analyst would be so foolish to beleive that this company with their sats, average life, capital needs, tech/maintenance requirements and conflicts of interest is headed to $30. But, this all makes for fun trading and profits for the retail crowd and the institutional momentum traders. The ending has remained unchanged. Globalstar will be a great buy. I was hoping for the stock to get to $10 to $12 before loading up, but it doesn't seem to want to go down.