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

To: Jim Parkinson who wrote (10006)	2/9/2000 2:51:00 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 29987

<...As Airtouch told me, this is all new technology and there will be a few glitches but that everything is on track for a hard roll out by end of 1st qtr. > Oooops, another slip to the right? The hard launch is supposed to have happened [15 November and we STILL don't know whether Bernie Schwartz bought the dinner he owes - these are important matters]. Now you say Vodafone [AirTouch] told you that it won't be until 31 March or before then, but we know about those 'during 3Q' estimates = it means that service actually won't start during 3Q and probably not in 4Q. No wonder a chill has fallen over the stock. You do see the Iridium parallels surely. Handsets not working [Ericy]. Late, late, late for service. Bugs and glitches. Overpriced minutes. Slow sales. Targeting those who 'must have the service at any price' as well as the rich and stupid [there are actually very few rich, stupid people or if they are, they won't be for long - rich that is - other than the statistical Forrest Gumps who luck out]. People are ignoring [somewhat] the vital technical differences between Iridium and Globalstar. The biggest being the difference in production cost of minutes. The other big difference is using many service providers who do indeed know how to function [more or less, in a rough kind of way] in their respective markets. Meanwhile, it was nice to see another rocket full of Globalstar satellites successfully fly into space. Congratulations to all the engineers and launch people. I say cut the minute price and keep right on launching flat out [Constellation2 in 2002]. Issue more shares! Maurice PS: Incidentally RocketScientist, I think the lowest Globalstar price after the IPO was $11.75 [though I might be wrong there] with some volume sold at $12, which I found an attractive price [in 1995]. Not $11. I'd feel ripped off if I paid $1 over the odds! Split-adjusted is easier too - that's $3.

To: Jim Parkinson who wrote (10006)	2/9/2000 7:45:00 PM
From: Elllk	Respond to of 29987

Jim Thanks for coming up with the very apt "Iridiumizing" as a description for what is often happening in discussions of G*. It is, of course, reductionism of the worst kind, though it has allowed many of us to get in at a cheap price for what should be an exciting ride. Larry

To: Jim Parkinson who wrote (10006)	2/10/2000 4:49:00 AM
From: Thomas	Read Replies (1) \| Respond to of 29987

Hi Jim, Points well taken. I am not saying that I think that G* has chosen the wrong partners, only that it would be nice to know the terms of those super secret SP agreements. Those agreements allegedly provide for SPs exclusivity being conditioned on meeting performance targets. It sure as hell would be nice to know what those targets are. Obviously it would be unfair to blast SPs for not meeting targets when there are no phones (and I am damn sure that those contingencies are quite well fleshed out in the SP agreements), but I am discouraged by the high minute prices. I am a Winn-ing Auction Model subscriber, and agree with Maurice that the only way to blow the service out the door is by allowing the market to establish the equilibrium prices to sell all those space-rotting minutes, NOT by allowing gouging SPs (just look at unconscionable terrestrial roaming charges) to set the price to maximize their profits (or so they think) at the expense of G* subscribers and shareholders. Of course, it is possible that the performance targets for the SPs (once the system is really hard launched and there are phones available) are meaningful and would translate into a solid business if met (I sure hope so). If the SPs don't meet the targets, set up regional resellers to buy up minutes and sell prepaid cards (should be technically possible, Iridium was considering prepaid cards, but ran out of money before they could develop the capability). That way, G* would at least have some outlet for otherwise rotting minutes and would instill some level of market discipline on these otherwise unruly SPs. Why not set up minute futures and let resellers buy capacity in the future? G* itself has done this with the greedy SPs selling them capacity at discount to get the cash upfront, and allow SPs to further fatten their margins. I say let the auctions begin.