Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Rocket Scientist who wrote (8150)	11/2/1999 3:59:00 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 29987

RS, you are certainly right that stockpiles of electronic devices when technology changes in weeks rather than months would be a bad move. But the just-in-time low inventory idea is more important in low margin business when warehouse costs and capital sitting doing nothing are significant. With Globalstar handsets, the cost is a few 10s of dollars [the marginal production cost] and the rest is all profit. So it is far more important to ensure all the customers who want one can get one than to save a bit of storage cost. The main issue is probably the technology factor. Rushing to stockpile handsets with glitches or slightly old software would be a shambles. That's the just-in-time factor which matters in handsets. [Maybe I'm being a bit pedantic here - as I agree, no stock is good stock and the handsets should be sold direct from the end of the production line to the highest bidder]. Okay, enough rant from me! Maurice