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

To: gdichaz who wrote (10952)	3/19/2000 11:12:00 AM
From: tero kuittinen	Read Replies (2) \| Respond to of 29987

The Ericsson Globalstar representative at CeBIT said that the satellite phones would start selling during the second or third quarter. I asked whether this meant that there are some phones shipping during the second quarter... and volume sales would begin later. He just repeated the same sentence in this Swedish Chef accent - it was obviously a programmed response. So it looks like Ericsson wasn't committing to a specific quarter three weeks ago. This is usually a bad, bad thing. But not always - they could be just cautious. Diamond... I'm not so sure that the topic here is "Globalstar sux!". I think the interesting question is whether the management is one Bud short of a sixpack or whether is has been extraordinarily unlucky. Either Globalstar is under a Gypsy curse or they are seriously not very bright. If the recent problems are just bad luck, then this is a huge buying opportunity. If the problem is dumbness, that may be terminal. To buy into the Gypsy curse theory you need to believe that Globalstar itself is not responsible of Ericsson delays, individual country delays, dual-number issue of US phones, 800-number issue, etc. I think you can believe that if you have good faith. Globalstar might be an extraordinarily bright company surrounded by extraordinarily inept contractors and service providers. But that brings us back to the conference call... why did the management discuss deals that were not really finished? Why the 200 000 projection for next four months? That call is the one thing that can't be blamed on other parties. Maybe G has been ill served by devious Third World telecom bureacurats... maybe they have been let down by Ericsson... but nobody forced the management to sell the idea about 200 000 phones shipped by March. That's the evidence in favor of the five-Bud theory. Though Rocket's approach may be ingenious... you could simply assume that 50% is BS, but that the company can still fly. Tero