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

To: Mark Fleming who wrote (7042)	8/31/1999 9:49:00 AM
From: JGoren	Read Replies (1) \| Respond to of 29987

Mark, you pegged Valueman's number one ad idea: "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: Mark Fleming who wrote (7042)	8/31/1999 3:19:00 PM
From: Maurice Winn	Respond to of 29987

Mark, your point is the correct one for why a lot of handsets will be sold! Emergencies and the odd high value call. Globalstar can't identify those special minutes and charge a big price for them, so they are not helpful to Globalstar profits though they are great for Qualcomm/Ericy/Telital handset sales. Globalstar needs regular, non-bursty, every day, "How's your Mum?" and "I'll meet you in 10 minutes down at the crik", type calls to make profit. <A globalstar phone could help close a $1 million dollar deal one day, but not close ten of them on other days. Business owners, 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?> Globalstar won't make much money from those emergencies. In regard to the high-priced help, they actually do get paid by the minute whether they have a time sheet or not. They work a certain number of hours a year and if we divide how much they get paid by those hours, we arrive at their hourly rate. Divide it by another 60 and we get their minute rate. Sure, some minutes are really high action, high value minutes and Rocket Scientist is quite right, it's hard to put a value on those minutes, but that doesn't mean it is randomly high. Sometimes ignorance might mean something is undervalued and they decline to use a superficially expensive thing which would save them lots of money. The assumption that because the value of calls is often high, people will pay a high price isn't necessarily true and more usually, people stay with their old ways and only on buying something do they realize just how good it is. Globalstar has to get people over that hump and a clamouring success is the best way to do that. Scare the monkeys away and it'll be a brave one to be first back. The idea that high-priced help doesn't care about price per minute was the big blunder Iridium made. Among other big blunders. It's amazing to see Globalstar proponents using just that argument again, while Iridium is still twisting in the wind. Rich people and high-priced help don't get that way by being stupid and wasting money. They'll want to know that the cost per minute comes back at double the rate. A bit of flim-flam won't be persuasive. Iridium used the "no matter what the cost" argument. I'm not keen to. Maurice