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: Jim Parkinson who wrote (10676)	3/9/2000 4:39:00 PM
From: Jack Hartmann	Read Replies (1) \| Respond to of 29986

Globalstar, Loral Down After CIBC Cuts Ratings Dow Jones Newswires 3/9/2000 NEW YORK -- Concerns over slower-than-expected customer sign-up rates prompted yet another downgrade for Globalstar Telecommunications Ltd. (GSTRF) and its majority shareholder Loral Space & Communications Ltd. (LOR), and continued to pressure share of both companies. CIBC World Markets Corp. analyst Jeffrey Wlodarczak cut the ratings of both stocks to hold from buy. He also widened the loss he is projecting for Globalstar in 2001 to $2.18 a share from $2.17 a share. Globalstar's 12-month price target was lowered to $15 from $32, while Loral's 12-month price target was dropped to $16 from $24. Globalstar shares were recently trading at 18 5/8, down 2 1/16, or 10%, on volume of 7 million, compared with average daily volume of 4.9 million. Meanwhile, Loral's shares lost 1 3/16, or 8.8%, to trade at 12 15/16 on volume of 2.5 million. Loral usually trades about 2.9 million shares daily. The downgrade was prompted by the uncertainty surrounding the viability of the global mobile satellite telephony market and how it has affected the companies' shares over recent trading sessions, said Wlodarczak. The analyst said other stocks such as General Motors Corp.'s (GM) Hughes Electronics Corp. unit (GMH) and EchoStar Communications Corp. (DISH), both of which he rates a strong buy, and PanAmSat Corp. (SPOT), which he rates a buy, offer similar potential for strong gains without the same level of risk. Midday Thursday, shares of PanAmSat were up 3 1/8, or 6.7%, at 50 1/16 while Hughes gained 1 5/8, or 1.3%, at 124 5/8 and EchoStar was up 5 3/4, or 4.5% at 133 1/8. Earlier Thursday, Morgan Stanley upgraded PanAmSat to outperform from neutral. In addition to slow customer sign-ups, the CIBC analyst said other Globalstar concerns are handset availability and the increasing likelihood that the company will have to become more involved in marketing the product than originally expected. Initial usage statistics are also below forecast, Wlodarczak said. He also expects the company may have potential financing issues in early 2001. The downgrade was the second this week for Globalstar and Loral. On Tuesday, Merrill Lynch & Co. cut Loral to long-term accumulate from buy and Globalstar to long-term neutral from long-term accumulate, citing similar concerns. Both stocks have been trending downward since mid-January, but in the past week Globalstar shares have fallen more than 35%, while Loral shares have dropped more than 20%. Globalstar officials weren't immediately available for comment. -Christina Cheddar; Dow Jones Newswires; 201-938-5166 Time for a PR G*. Analysts are dumping on the stock. Jack