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

To: Sawtooth who wrote (8085)	10/28/1999 9:48:00 AM
From: Stephen L	Read Replies (1) \| Respond to of 29987

Operating Leverage & Uncertainties of Demand Its Oct and PM's are easily spooked. And for a company that is still in the start up phase like G* perhaps they should be. Demand is unknown. The phones are not widely available. And calling costs are still high. Its the chicken and the egg scenario wrt Demand and Deployment. Yes this one could fail. But the operating leverage embedded in the G* business model is huge. Some speculate that at 500,000 customers at today's pricing ($1.25 to $1.5 per minute)G* breaks even. At greater subscription numbers EBITDA increases rapidly. If they are smart, at that point they would start cutting pricing to ramp up deployment. With the world economies showing signs of life, demand for teleco services outside the major metro areas should build rapidly. It would be nice if there was a serious intent to run IP/Data service over G* as some suggested yesterday. From my cursory reading of GBLX's earning reports and some articles on Asia, the rest of the world is dying for access to North America's E-economy (as well as for efficient was to communicate with each other). A first mover advantage in Voice and Data over LEO would be nice.