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

To: Rocket Scientist who wrote (9983)	2/8/2000 3:21:00 PM
From: Maurice Winn	Read Replies (4) \| Respond to of 29987

The greedy and stupid service providers are the primary problem. They seem to want $1 a minute profit on Globalstar service but are happy with wayyyyyyyyyy less than that for terrestrial. Globalstar needs to play them off against each other to create competition within Globalstar. Globalstar has a lever - 'we will match the % you cut your price below $1.50 per minute'. So, if a service provider cuts the price by half to 75c, then Globalstar will cut the wholesale price by half to 20c or 25c. Then we'd get a bit of excitement. Stupid and greedy service providers who stayed at $1.50 and $1500 would miss out. They would not be able to buy handsets [which would be in BIG demand at the feral marketing service providers] and would not have many customers when the constellation is fully loaded and the BIG BIG BIG minute profits start rolling in as minute prices go up. Let's hope the service provider agreements allow for such price cutting and competition. Time to take off the kid gloves and make things happen. Bad luck for bureaucratic service providers who are used to government department ways of life. Personlly, I think a 75% price cut by Globalstar and the service providers would be about right to start. That would make it competitive with all sorts of terrestrial ripoffs and really generate some business. And I don't mean a pathetic first month only cut. I mean until the constellation starts filling past the 50% of capacity mark in any area or until handset prices get too high [say $2000]. Maurice PS: David [Wiggins] I think it's fine to sell new shares at 'what the market will bear'. Provided it is honest and material information is not concealed and that no fraud is involved. If prices subsequently fall, that's bad luck for the new shareholders. I don't believe there would be a bad taste if they just misjudged the value of the shares. I don't see why we existing shareholders should sell those shares any cheaper than we have to. $35 might still be a huge bargain. Not at today's prices, but presumably they bought the shares so they'd get the profits in 3 years. Rushing...