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

To: djane who wrote (7571)	9/27/1999 1:17:00 AM
From: djane	Respond to of 29987

G* in single digits? (short argument via yahoo thread) Top>Business & Finance>Investments>Sectors>Services>Communications Services>GSTRF (Globalstar Telecommun.) Nuker, why G will be single digits by: SargeJhcky (38/M/West Point) 13625 of 13630 I'll tell you why. Because last year when the correction hit, it took Globalstar to 8 bucks a share. This year it's closer to operation. But, problem is, unlike last year, there are all kinds of new and terrible negatives for Globalstar now. What's different? Roll out goals being missed big time. Pushed out months for the hard roll out to who knows when for North America. Iridium has now demonstrated that the market for this service is very limited, as they went bankrupt with very few subscribers. ICO, no financing as backers realize no future on this. Globalstar financing is backed by Loral. Basically they're backing their promises by CEO of one company, promising the assets of his other company. Yikes what an incestuous and dangerous financing deal. Globalstar didn't realize cellular would drop to very low cost and very high coverage so quickly. Yet they aren't responding well. CEO says no need to lower the price or change anything. Oh yeah, lots of Ubangis and Amazon river natives will pony up 1200 bucks or more for a phone and another 2.00 a minute for service. Sure. Globalstar CEO now resorting to incredibly non credible projections. 1.2 million subscribers using 180 satellite minutes in Y2K. Right. Does anyone believe that he believes this? Overall market going into correct mode. Globalstar will get hot worst. Companies unproven with no earnings, and this much risk. They will get hurt badly before Y2K arrives. Microsoft VP warnings are just the beginning. It'll be several quarters before Globalstar even has a hope of building a true revenue producing business. Investors will bail long before then and wait until it's proven. Single digits. Maybe even lower than last year at this time. At the very best, low teens. Why would anyone sit tight and watch half their money disappear? Even a staunch long? No intelligent ones will. Too many other great opportunities created the past few weeks in other stocks with real potential. Bye longs, hope you have aren't margined or investing your retirement in this one. Posted: 9/26/1999 8:50 pm EDT as a reply to: Msg 13617 by NUCLEAR_MONSTER