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

To: Maurice Winn who wrote (7037)	8/31/1999 9:24:00 AM
From: Mark Fleming	Read Replies (2) \| Respond to of 29987

< So to justify that $1 coming off the bottom line, there had better be at least another $5 or maybe $20 for some businesses, coming in the top line. A 5 minute Globalstar call is going to ding the company $10 in call costs. They need to get at least $50 extra revenue from that call that they couldn't otherwise get to justify that call. > You can't quantify it that way. A globalstar phone could help close a $1 million dollar deal one day, but not close ten of them on other days. Business onwers, high-income salesmen, finance guys, and so on, don't get paid by the minute. If they need to make a call, they need to make it, no matter the cost. Of course, they would not use it every hour of the day for all their calls, however. As for me, I'll have one, even if it doesn't bring me a penny of business. I want it for emergencies, for when I'm not in a cell area. If my wife's car breaks down on a lonely freeway between cities, what's that worth?

To: Maurice Winn who wrote (7037)	8/31/1999 9:11:00 PM
From: Waitstill	Respond to of 29987

Maurice, whereas you make some valid points, there are three matters to which I would like to draw your attention. First, you seem to have great faith that companies act rationally, and have a firm grip on their bottom line and cost/benefits of doing business in the SHORT term. This has not been my experience (with a few notable exceptions, where the company was carefully controlled and managed.) Most companies will spend money based on some senior manager's projection of increased sales and will accept any technology that an able vendor convinces them (usually on a golf course) will bring them that increase. It then takes several years for them to catch up with whether this is or is not working. Paradoxically, such technology very often does bring increased sales. Maybe because the senior mgr pushes his people harder to justify his decision. Maybe because the customers are impressed with the company's technology. Either way, one has to hope that G* itself has an able sales staff (or at least, good golfers). Second, G* equipment will enable many of the international companies to expand into markets that they cannot reach today, with the same facility they have in the USA. Imagine all those Nikes they can sell to the Sherpers in Katmandu. Third, six million phones will not be sold overnight, and that allows time for a) the technology to change, and b) the price to drop. Not certain, but historically technology in other fields, similar to this, has changed every 18 months, at least. This should give G* time to solve some of its problems, assuming they have a management that is on top of things, and I more or less believe they do, or Bernie would be jumping on them. Just for the record, we got out of G* a short while back, but I have confidence (pretty much) that long term they will be a successful company and am prepared to jump back in when they have overcome what I feel is undoubtedly going to be a hump (or is it a dip). In the meantime, the money is better used elsewhere. At the moment I feel the best way to own G* is through LOR.