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

To: djane who wrote (5408)	6/28/1999 2:02:00 PM
From: djane	Read Replies (1) \| Respond to of 29987

10 Reasons IRID is going to 0 (via I* yahoo board) Top>Business and Finance>Stocks>Services>Communications Services>IRID (Iridium World Comm. Ltd.) 10 Reasons IRID is going to 0 by: NYinvesta 18002 of 18014 1) They had a $500 Mln loss on 1.5 mln in sales last quarter. 2) They have 1.2 bln in bank debt, 1.4 bln in Junk Bonds and very little cash, nobody wants to give them any more cash. 3) When they do "formally" file for bankruptcy (June 30th, July 15 or Aug 15), they will try to get equity for the gateway holders BUT - they may wipe out the current equity and issue new equity specific to the gateway holders AND- people are not counting on the additional dilution from the $1bln or so in new financing they will nedd going forward. 4) They have just given up on their largest market. 5) The Junk Bond holders will not be satisfied with 20cents on the dollar if the equity holders get a penny. 6) It is still not clear if the phone works. 7) A recent article i the WSJ pointed out that there is national landbased cellular service being rolled out in Bangledesh at $250 for a Nokia phone and 25 cents a minute for airtime, this sort of thing will blow out satellite pricing models, particularly as it gets even cheaper. 8) The system does not have the capacity to lower prices to the new levels and make any money. 9) The Banks may be better off cutting out the equity holders completely and just running the service regionally thru the US and Australia. Motorola is a bank debt holder and that way it will be easier to get rid of the Equity Holders AND the Junk Bond Holders. 10) Pricing for PCS and Cellular is about to collapse further (IE we will see 1cent a minute soon and they wiil have a huge incentive to get into more remote areas as their is more demand and the margins are wider. Just remember, IT IS ALL BAD NEWS now thru Aug 15th, enjoy the ride down. Posted: 06/28/1999 01:39 pm EDT as a reply to: Msg 17996 by ChinaScho_81