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 (9527)	1/13/2000 9:55:00 PM
From: Maurice Winn	Respond to of 29987

*GSTRF and LP shares* Globalstar LP 290 million shares Globalstar Telecommunications Limited 121 million shares which is 42%. That's when all the smoke has cleared and all those options and stuff have been put in [give or take a few]. When Globalstar LP gets $4bn profits to divvy up in about 4 or 5 years, we'll get our share of it based on those figures. So, 42% of $4bn is $1.6bn. That's about $13 per GSTRF share. Since that's not for a few years, we need to use one of those accounting discount factors to allow for the time value of our capital rotting away at an opportunity cost of 1bn minutes per month. That profit is worth something like $6 today [depending on risk and whatever factor you choose]. If we give that a conservative 20:1 P:E that would be about $120 today. If we get daring and make it a 40:1 that would be a value of $240 today. Yet people are selling stock at $35. So a LOT of people think there is a LOT of risk and sales will NOT go very well. I'm repeating it to try to make it stick in my head. Those figures [and adjustments] will need repeating constantly. So, to summarize, there will be 290m LP shares and 120m GSTRF shares. 42% of the total [not a third] Okay, I think I've got it. Maurice PS: Thank you Brian for sorting that out. RS too! 290/120/42%