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

To: Jeff Vayda who wrote (5705)	7/14/1999 10:43:00 AM
From: djane	Read Replies (3) \| Respond to of 29987

*Motorola hopes Iridium won't have to liquidate Wednesday July 14, 9:25 am Eastern Time CHICAGO, July 14 (Reuters) - Wireless communications and semiconductor maker Motorola Inc. (NYSE:MOT - news) said Wednesday it hopes that financially troubled Iridium LLC (Nasdaq:IRID - news) will restructure rather than liquidate. In a conference call with analysts and reporters, Schaumburg, Ill.-based Motorola said Iridium had three options -- out-of-court restructuring, Chapter 11 bankruptcy protection, or liquidation. ''It is Motorola's hope that this last scenario (liquidation) can be avoided,'' said Robert Growney, president and chief operating officer. Growney reiterated the company's stance that it would not increase support for Iridium unless the other backers also contributed. Iridium, the global satellite phone company that Motorola has bankrolled, has had trouble signing up subscribers to its pricey system, which allows customers to make phone calls from anywhere in the world. Iridium's lenders have extended its $800 million credit facility three times, and analysts have said the company is in danger of defaulting. Ed Gams, head of investor relations for Motorola, said Iridium and its backers would hold ''significant discussions'' in the third quarter, but said Motorola would not comment on those talks until some conclusion was reached. Growney said analysts' consensus third quarter earnings estimate of $0.51 a share, and sales projection of $7.8 billion were ''within reach,'' and said full-year profits of $2.00 a share and revenues of $31.6 billion were ''also reachable.'' Motorola said profit growth would likely be driven by strong sales of wireless phone handsets, and continued improvement in the semiconductor industry. Motorola estimated that the semiconductor industry as a whole would grow 15 to 19 percent in 2000, and repeated its earlier projection of 9 to 11 percent growth in 1999. ''While we are not ready to raise our 1999 estimate beyond the 9 to 11 percent range, our confidence is growing,'' Gams said. More Quotes and News: Iridium World Communications Ltd (Nasdaq:IRID - news) Motorola Inc (NYSE:MOT - news) Related News Categories: options, US Market News Help Copyright © 1999 Reuters Limited. All rights reserved.

To: Jeff Vayda who wrote (5705)	7/14/1999 10:44:00 AM
From: djane	Respond to of 29987

the street loves it and we all retire -- a very calming comment :-) djane

To: Jeff Vayda who wrote (5705)	7/14/1999 10:47:00 AM
From: djane	Respond to of 29987

a more sobering thought -- maybe we're just getting a boost from options expiration week activity?

To: Jeff Vayda who wrote (5705)	7/14/1999 12:06:00 PM
From: djane	Respond to of 29987

CNBC just did a a nice segment on I problems and G* positives. Here's the transcript. Phil LeBeau live from Chicago reports with more on I* problems. To give you an idea of how bad things are for Iridium, in MOT CC, they said they will not further support I* unless other investors help in restructuring I* debt. Stock plunged 10% to a little over $7. Shows 1-year chart from $70 to $7. Discusses I* good tech and delays. Iridium is behind user and revenue projections. 15,000 subscribers worldwide now when it needs 1 million to be profitable. I* has restructured its business plan and cut costs to entice more users. More importantly, Wall St. is concerned about I* plan to restructure its $3 billion (emphasized) in debt. Analysts says I* probably will ask debtholders to exchange their notes for debt to defer interest for a long time. But, it isn't true that Wall St. isn't sold on companies which provide satellite telephony. Let's look at what's happening to Iridium's chief competitor Globalstar. G* is trading today up to +1 to $28 15/26. Shows G* 1-year chart and nice breakout at the right. Analysts says G* is clearly profiting from I* problems because G* costs are 10% of Iridium's costs. Wall St. isn't concerned about the idea of whether satellite telephony companies will work, but whether I* has the business plan to work. Many say I* doesn't have such a plan. At this point, no one is saying I* is dead in the water. But, clearly this is the most serious talk about how bad things are for Iridium. We'll have more later today on Iridium and its problems. Shows MOT chart (down 2 to 94.5).

To: Jeff Vayda who wrote (5705)	7/14/1999 1:19:00 PM
From: djane	Read Replies (2) \| Respond to of 29987

If I remember correctly, Hyundai was going to handle G* in India but they withdrew. I thought there was a rumor than Singapore Telecom was going to takeover for Hyundai. Anyway, I think the G* business plan already calls for no India sales in the next couple years. If this info is wrong, anyone feel free to correct it. djane