Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: TMann who wrote (6005)	7/25/1999 10:03:00 PM
From: TMann	Respond to of 29987

Wall Street Transcript Summary of Satellite Communications Stocks: Date: 6/28/99. 3 analysts (Smith Barney, Merrill Lynch, and Georgica Advisors) were interviewed concerning satellite segments: DBS, fixed services, VSATs, mobile sat phones, and sat manufacturing. DBS: analysts see further growth due to local channel offerings, e-mail/internet services, and potential partnership with regional phone companies. Growth has been about 40%/yr and should continue. Echostar was the standout, with an estimated earnings of breakeven in '00, $2.50 in '01 and $6.00 in '02. Fixed services: Growth in this area is expected to be 15% for the next several years. The analysts disagreed that there may be overcapicity in N. America. LOR was mentioned positively. VSATs: Growth of 15-20%/yr expected. Very positive on Gilat Satellite. Prediction was made that VSATs will be first to benefit from broadband internet demand. Gilat already has a 2 way high speed service via Skyblaster product and is expected to do well. This stock was probably the most promoted due to historic growth rates, sound management, and proven track record. Mobile sat phones: Much discussion of why Irid fumbled. Concensus was that they started system too early, have limited capacity (therefore high prices), and botched marketing. Analysts DID NOT BELIEVE IRID FAILURE WAS AN INDICATION OF LACK OF MARKET. However, analysts also recommended staying on sidelines(G* & Irid) until market demand is proven. General tone was cautiously optimistic, but concerns exist that it will take twice as long to reach subscriber #s, thus lowering returns. There was no discussion of phone/network performance; it seems the street is satisfied its a viable technology. Sat manufacturing: LOR and GMH mentioned positively. Mature business should grow 10-15%. Other: CD Radio mentioned favorably as a very speculative play. Analysts expect lots of bumps during financing and startup. Could be a real gem if successful. Pasifik Satelit also speculative and could be a real winner if ACes is successful. Also, general discussion of broadband internet via satellite was very positive. There seems to be recognition that satellites will be a popular transmission medium to rural areas, overseas, and for cacheing. No one expressed doubts on Cyberstar, Teledesic, or Skybridge, but the timing is suspect. This market will probably develop in '01 or '02. Finally, it was mentioned that John Malone is interested in broadband satellite, and could be doing a deal with LOR. Well that's about it. Hope it is useful to all stary-eyed sat. investors.