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

To: The_Guru_00 who wrote (6834)	8/25/1999 5:11:00 PM
From: Rocket Scientist	Read Replies (1) \| Respond to of 29987

It would be interesting if ICO abandoned plans to deploy a system and just tried to sell off its assets piece meal. It must have several half paid for launch vehicles and satellites in process at Hughes, which should be worth something to somebody. The satellites are pretty much standard HS601s, I believe, so they should have a resale value as long as they're not deployed in some funny orbit. Current equity and debt holders ought to wonder whether the work in process isn't worth a lot more on the ground than it would be if they find the money to put it in space (especially as there's a big risk that they'll get only enough money to put up half the constellation or less) I never saw a plan for raising the other 1B$ they would need to get to start of operations, let alone additional money to get to break even cash flow.

To: The_Guru_00 who wrote (6834)	8/26/1999 12:55:00 AM
From: Maurice Winn	Read Replies (1) \| Respond to of 29987

<Logic dictates that ICO scrap its plans. Its partners would be much better off infusing the cash in Iridium and switching horses at this stage. Now that would be powerful. > That wouldn't be powerful, it would lose them money. Guru, the only people able to make money from Iridium now are Motorola and Kyocera. Everyone else loses. Oh, lawyers still can make heaps. If somebody else puts money in, it will be captured by Motorola and Kyocera who will take that money in the handset price. It's a handset business now, not a satellite business. That's the only place for money to be made. Motorola and Kyocera just need to bluff the other shareholders and the bond holders into accepting $0.001 in the dollar to get them to vote for a takeover by Motorola and Kyocera. Okay, maybe 1c in the dollar. That's better than nothing and all they'll get anyway. If Motorola and Kyocera are good at bluffing, they might also be able to con some USA taxpayer money out of the USA military to keep it running. For example, Iridium could switch the calls through the military gateway and make a small payment. Tell other gateway operators they are out of business [unless the other operators pay for having calls switched through their gateways]. Some greedy governments are going to miss out on their expected money = bad luck for them and good riddance. ICO shareholders would get zero benefit from putting money into keeping Iridium going. They would be better to put money into ICO than Iridium which at least has low per minute costs and would have a total coverage advantage over Globalstar [for maybe 5 years anyway]. Iridium's best action is to hand it over to Motorola and Kyocera who will at least make a little bit of money on handsets and provide coverage to existing and future subscribers. ICO's best action is to can their system since Iridium can provide the coverage for the few who need it and they won't be able to compete with Globalstar in the inevitable price war. Globalstar's best action is to have a unilateral price war so that the system fills fast and handset demand is huge. Maurice