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

To: djane who wrote (5679)	7/12/1999 5:48:00 PM
From: Rocket Scientist	Read Replies (1) \| Respond to of 29987

djane, I don't know how sincere Mr. Stephenson is <1. Laments Reid Stephenson, vice president of marketing for Globalstar. 'We are very disappointed by Iridium's difficulties.'"> but as a G* s/h I'd be a lot happier if Iridium was doing better. In the best case, if Irid had rapidly penetrated the market at its previous prices, we wouldn't be worried about the right pricing point for G* any more, and our stock would probably be 50% or more higher than it is. In the second best case, if Iridium starts selling well at its new prices, at least G* SPs will have a firm and achievable target to beat when finalizing their pricing. In the (almost) worst case, Iridium goes Ch11, and/or renegotiates it's O&M and debt service obligations and can make money at prices low enough to put real stress on G's RoI. In the worst-worst case, Iridium goes out of business followed shortly by G because the skeptics were right all along: everyone that can afford a mobile phone service is perfectly satisfied by existing coverage and those that lack coverage can't afford MSS. so I agree w/ Mr. Stepenson (I am) "very disappointed by Iridium's difficulties," and unless/until Irid or G* start to ramp up some real customers, there's plenty to be nervous about.

To: djane who wrote (5679)	7/12/1999 6:07:00 PM
From: JMD	Read Replies (1) \| Respond to of 29987

djane, maybe the quoted G* offical was lamenting I*'s woes with a Cheshire cat grin, but if Bernie hadn't pulled off the financing I can almost guarantee his melancholy would be for real. I'm naive enough to think he was on the up and up anyway--unless 3,696 market studies are all dead wrong, there's demand aplenty. When you're trying to get a market launched, a fiasco of Iridium's dimensions casts a very broad stink bomb over the whole business of satellite telephony which means you lose Wall Street for. . .how long? Even the cynical side of me can't get too excited, at least not yet. Iridium's crash and burn erased our Zenit fiasco in one fell swoop-- an incredible bit of luck. But only if we sell the service like hell won't have it. This thing is teed up beautifully: I'm with Maurice on the pricing two thousand per cent. Don't care if we give handsets away for $50 and the first 1000 minutes free. The value of a network increases exponentially with the number of users on the net: get customers by the bushel load and our stock price will reflect that value. NO customers and we ain't going to Disneyland, CDMA, bent pipe or blah blah blah. Imperative to demonstrate market demand, period, end of report. We do that and all the analysts are going to forget Cox/Zenit faster than you can say cash flow. We don't, we're toast. Loral/Globalstar guys and gals: turn the marketing pros loose and don't stop till every transponder is maxed to the gills. With apologies for mixed metaphor. regards, mike doyle