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

To: Sawtooth who wrote (7746)	10/6/1999 11:16:00 AM
From: CMon	Read Replies (1) \| Respond to of 29987

Fine. But my question stands: When an analyst sets a price target, and the shares reach that target, are you surprised to see a downgrade? Isn't that what analysts should really be doing?

To: Sawtooth who wrote (7746)	10/6/1999 1:10:00 PM
From: John Stichnoth	Read Replies (1) \| Respond to of 29987

Tim and CMon--One of the good things that an analyst can do, but doesn't always, is remove buy recommendations when a stock reaches an appropriate price. A stock moving up in the absence of other information should be downgraded. The key factor for G* is the other information, imo. The stock has moved up, but the risk surrounding the stock seems to be going down. Bernie has bought more shares in the open market; positive press releases (orchestrated, of course for Geneva); a widening belief that the market does exist. All positive and factors that should rationally drive the price up. So, Unterberg probably is wrong in lowering the recommendation instead of raising price targets. (I think! :o)). Best, JS