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

To: Jon Koplik who wrote (8321)	11/13/1999 10:11:00 AM
From: Robert Scott	Read Replies (2) \| Respond to of 29987

Barron's is so often wrong - I hope they're NOT wrong on this one.

To: Jon Koplik who wrote (8321)	11/13/1999 11:02:00 AM
From: Rocket Scientist	Respond to of 29987

The Barron's article is a net positive, I guess, but it has a couple of pretty egregious errors that significantly understate G's prospects: "Globalstar is aiming for three million subscribers within three years, after which both operating earnings and bottom-line net income are expected to follow." The last guidance from management indicated breakeven EPS at 1M subs, I believe. At 3M subs, it should have pre tax earnings approaching 2B$ (assuming current G wholesale pricing). "estimates of potential users range all the way from 30 million to 40 million. That represents the total number of folks lacking direct access to worldwide phone connections." Most G* longs know that 30-40M is the company estimate of those who need and CAN AFFORD G* service. The number without access to phones presently is over 2B according to most estimates.

To: Jon Koplik who wrote (8321)	11/13/1999 1:29:00 PM
From: John Stichnoth	Respond to of 29987

Schwartz's confidence is reflected in heady financial projections: generation of meaningful revenues by early next year, okay, so far. break-even on an operating profit basis by the end of 2000, No, not quite right: Rocket has convinced me that somewhat just more than 600,000 subscribers is the outlook for end 2000, which would cover interest cost but not depreciation. and positive cash flow within a couple of years. No. If the numbers above are right, then phones will be coming out at 50,000 per month, which should allow depreciation coverage 6-8 months later, or in mid 2001. Globalstar is aiming for three million subscribers within three years, Okay. And, this number is in line with our estimates. after which both operating earnings and bottom-line net income are expected to follow. No. Profits begin as soon as depreciation is covered, with 1 million subs--in mid/second half of 2001, assuming no further developments are identified. Other than that, the paragraph is perfect. <g> Best, JS PS--This isn't easy, since the numbers keep changing. The article I thought was balanced and fairly complete considering how much it had to cover in so little space.