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

To: djane who wrote (6451)	8/12/1999 7:05:00 PM
From: Jon Koplik	Respond to of 29987

Based on personal experience - I think you are exactly correct. I originally got my first "exposure" to wireless (Sprint PCS service on a Qualcomm QCP-2700 handset) mainly as a way to force myself to see "first hand" what is going on with service interruptions, customer service, ease of use, etc. (because I was (and still am) "in" Qualcomm. Then, just like everyone predicts, my wife and I became hopelessly "hooked" on having a cell phone. Now, we are seriously considering getting a Globalstar handset when they are available, for exactly the reasons you thought about. Jon.

To: djane who wrote (6451)	8/12/1999 7:10:00 PM
From: djane	Read Replies (1) \| Respond to of 29987

Reuters. Iridium shares hit new low Thursday August 12, 6:00 pm Eastern Time NEW YORK, Aug 12 (Reuters) - Shares of Iridium World Communications LLC plunged nearly 25 percent to a record low Thursday in the wake of news that the struggling operator of a $5 billion satellite telecommunications network had defaulted on more than $1.5 billion in loans. In intraday trading, shares of Iridium fell to 4-3/8 from an opening 5-13/32 before recovering to 4-17/32. The drop landed the company's stock at the top of the list of percentage losers on the Nasdaq. Late Wednesday Iridium said it had defaulted on a $800 million loan and another $750 million loan after it failed to meet customer and revenue growth targets required under the larger of the two loans. The default has the potential to lead Iridium to bankruptcy. Analysts have said they expect the banks to wait to see the outcome of a restructuring plan the company is discussing before they decide on a coarse of action. ``At this time, banks may feel that Iridium's future is significantly enhanced by a restructuring that includes a significant Motorola cash infusion,' C.E. Unterberg analyst William Kidd wrote in a research report. ``On the other hand, assuming Motorola is committed to a bailout, they may also be well positioned for a tough stance,' Kidd wrote. ``A tough stance could include the banks asking for a small cut of any Motorola infusion as a paydown, directly improving their ultimate recovery.' Kidd, who also warned that an Iridium bankruptcy ``may be awfully close,' repeated his sell rating for Iridium shares. Motorola Inc. (NYSE:MOT - news), Iridium's original backer and one of its loan guarantors, holds about an 18 percent stake in Iridium and has raised the possibility that Iridium may have to liquidate. Soundview Technology Group analyst Tim O'Neil said he believes Motorola will step in with a cash infusion and larger equity stake. ``They're going to demand their pound of flesh,' he said. That payback may be in the form of a greater representation on Iridium's board and managerial control. ``At the end of the day, Motorola has to step and give them one more chance to find a market,' O'Neil said. Meanwhile, Iridium faces another deadline Aug. 15, when it is scheduled to meet a $90 million interest payment on its $1.45 billion in bonds. The payment was originally due July 15, but Iridium exercised a 30-day grace period. Earlier in the week, analysts said the reorganization may call for Iridium's bondholders to swap half to two-thirds of their securities for new debt that is convertible into Iridium common stock.