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

To: Valueman who wrote (9378)	1/9/2000 10:34:00 PM
From: Rocket Scientist	Read Replies (1) \| Respond to of 29987

So how much more cash is G* likely to need? At y/e '99 it had 500M$ in cash and prearranged credit according to BLS' last conference call. It should get some positive cash flow on the handover of GWs and UTs, maybe 100M$, I'd guess. Against that, it has cash operating and interest expenses of 125M$ per Q, plus it has to pay off or refinance 250M$ due June 30, I believe. It also has "non-operating" expenses associated with spare satellite production, software upgrades, GW/Service Provider investments and God knows what else. My guess is it needs another 300-500M$ this year. Anybody with better arithmetic? As long as GSTRF stock stays well north of 30$ (the farther the better, of course) which in turn depends on the rollout progress, I'd say we don't have a problem. For one thing Loral's warrants, and ownership of GSTRF common make an interesting form of currency. As far as I know, BLS' rolodex is still pretty good. I don't doubt he knows investors that may like to take a substantial position in G* but not pay retail price, especially with GSTRFs tiny float. Loral's warrantss convert in the low 20's, I believe and the first tranche are convertible next month. Loral could make a deal analogous to the one with Soros in 1998. The buyer purchases g* common from Loral at a fixed discount to market; Loral uses (some of) proceeds to exercise warrants. G* gets cash, Loral records a c.g. and gets some cash for itself, buyer gets GSTRF at a discount: happy ending for all.