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: Maurice Winn who wrote (8660)	12/12/1999 3:16:00 PM
From: tero kuittinen	Read Replies (2) \| Respond to of 29987

I smell smoke, alright... but not in the sense you mean. The thread has succeeded in identifying one Globalstar phone owner in the continent of North America by December 12. I'm not sure that "rubber meets the road" is the phrase I would use to describe this event. How about "a day late and a dollar short"? Here's the key question: if Globalstar didn't stick to their service roll-out plan, their phone price plan, their call rate plan, their gateway plan or their year 2000 subscriber projection... will they stick to their projection of 80-200 billable minutes per month? After every single earlier estimate about this company's business has been flushed down the toilet - will that last number stick? That's the Maginot Line, Maurice. Everything else can and has been forgiven by starry-eyed analysts, some of them employed by firms involved in financing Globalstar. But that's the one promise they can't break. Judging from Iridium's numbers, consumers don't buy satellite phones for chatting purposes - they buy them for emergency situations. 30 billable minutes per month seems a whole lot more reasonable than 130. Isn't that why Globlalstar is now offering calls with a 50% discount? They want to push off the moment of truth about the real consumer demand for 3 dollars-per-minute international calls for as long as they can. I'd do the same. People who are now projecting 160 minute monthly average are the same guys who projected 1 million subs by the end of year 2000. The same guys who talked about 700 dollar handsets with such confidence last summer. The same guys who anticipated call rates well below one dollar a minute. I expect them to continue their winning streak with their current estimates. Tero