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

To: Jeff Vayda who wrote (8568)	12/6/1999 2:39:00 PM
From: Lance Bredvold	Respond to of 29987

Qualcomm's intent to sell their handset manufacturing capability I think works right into Globalstar's needs. I think one of the problems potential buyers of that division have is that they don't really want to have a high cost factory on top of a hill in an exclusive section of San Diego. Yet Jacobs, et al, want to keep the current employees as secure as possible. I suspect, as with the infrastructure sale, Q will keep the real estate, sell the business with some requirement for retaining some number of personnel, and then find a way to share the building production lines and costs. That will leave the Q with over capacity IMO. They were geared to produce 1mm phones per month from that facility, were being constrained by parts shortages and actually produced at 700,000 units per month over the last year or so. Incidentally, the QPE manufacturing building is not in the immediate area of the majority of Q buildings though it is not more than 5 or 10 minutes away and can probably be seen at the top of its hill from the top of the Q campus hill. Lance