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

To: David Wiggins who wrote (10082)	2/13/2000 12:17:00 PM
From: Red Heeler	Respond to of 29987

Globalstar handsets now available in the Dallas area through Norsat. CC

To: David Wiggins who wrote (10082)	2/13/2000 6:28:00 PM
From: biffpincus	Respond to of 29987

"As I have learned (tongue somewhat, but not totally, in cheek) you cannot believe a word the company says when it comes to numbers" Well, I know what you mean, but nevertheless, under SEC regulations, any reporting company MUST provide the truth in all press and IR responses (if they choose to respond at all). Your point is well taken about "projections" though, there is nothing to stop an IR department from projecting confidence - there is no crime there. But occasionally crumbs of real information do find their way into investors' hands. In that hope, I include my follow-up post to GSTRF IR for some clarification on a few issues raised by our recent exchange. I will post any reply. Here's hoping their projections and our investment goes in the same direction - UP! Biff XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX In a message dated 02/11/2000 5:35:44 PM EST, Mac.Jeffery@hq.loral.com writes: << the factual information you have collected on our company is generally correct. >> Mr. Jeffrey, Just a follow-up question or two regarding your recent post to me (and a comment from a member of my group). You mentioned that I was generally correct in regard to the information I had collected. Specifically, will the actual per call cost basis to GSTRF be in the $.05 p/minute range? The profit margin generated by that figure is more than impressive, and I until I hear back from you, I don't want figure that into any potential revenue projections. I assume that particular figure may not be attainable until you've reached a certain level of subscribers and call minutes. If so, at what subscriber level would the $.05 cost to the company come into play? Also, I would be interested to hear more about your handset leasing program (I am concerned at the relatively high cost of the handset devices), and am interested in any possible cost reductions that Globalstar may be entertaining to encourage the growth of their subscription base. Specifically, it seems to me that Globarstar could take a page from the partnerships that the major PC companies have with the various internet portals and (because of your high profit margins) offer the same steep discounts and rebates (in terms of the handsets) in exchange for long term committments from your subscribers to the GSTRF service. I'm also including below two "devil's advocate" comments from a member of my investment group for your review. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Mac.Jeffery writes: << "But to your specific question about possible competition from globalISPs, bear in mind that Globalstar has all along stated that we have no intention of competing with cellular or any other terrestrial-based system." ...... "You correctly note that connectivity to both phone and data is becoming ever more available in hotels, airports and business centers, and Globalstar has no intention of competing there". >> Devil Advocate's response: "Why not? If the "extraterrestrial infrastructure" is in place to serve all areas does this mean that satellite cannot compete cost-wise?" Mac.Jeffrey writes: << But well over 80% of the world's land mass is still out of range of any wireless service, and it is here that Globalstar, in effect, has no competitor. To take just one example, only 5% of Australia's land mass has cellservice, putting over 1 million people outside the range of cell. Similar pictures emerge in Brazil, southern Africa and many other areas where build-out of land-based systems will take many years, and in areas where population density is too thin, there may -never- be a terrestrial wireless system.>> Devil Advocate's response: "But as build out of land based systems continues as it has and you've conceded this market to them, your potential market will continue to shrink. Having 80% (and shrinking) of the Earth's land mass monopolized when it holds only 5% (and shrinking) of the population (and the least likely portion of the world's population to utilize wireless services), the growth potential for your services seems finite." XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX (Back to me) Any response by you to same is gratefully appreciated. My associate suggests that the 5% population figure that is your target market is the least likely population to have the money to afford your system. Do your internal marketing projections dispute that claim? Perhaps you have a specific location on your site that already answers these particular questions. If so, please let me know, and I will be happy to continue my research there. As for the "heart" of your email to me. I have to tell you I was very impressed with the "clarity" of your vision of the company's mission. As you know, I am a new investor to Globalstar, and frankly had not been following your company too closely until just recently. I think I came into this company with the common Iridium based concerns about the entire sector. I had taken a tour of your web site before writing you in an attempt to learn about GSTRF. But I gained more of a favorable impression from the information which you provided me than what was currently displayed on your site. I would have had a much clearer picture of the market and opportunity that lays in front of your company if something more along the lines of what you wrote me was displayed on the web. Perhaps you can pass along my comments to your webmaster's "suggestion box". I am more excited than before of the possibilities that GSTRF represents to me as an investor, and I appreciate your taking the time to answer some of my questions. All my best, David M. Pincus