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

To: Geoff Goodfellow who wrote (11480)	4/4/2000 6:32:00 AM
From: Geoff Goodfellow	Read Replies (2) \| Respond to of 29986

IN THE MONEY: Globalstar Bonds, Stks In Divergent Outlook By MICHAEL RAPOPORT A Dow Jones Newswires Column NEW YORK -- Investors in the bonds of satellite-telephone system Globalstar appear to know something its shareholders don't. Or maybe it's vice versa. ...<snip>... Notes issued by Globalstar L.P., the partnership that owns the satellite system, are trading at about 35 to 40 cents on the dollar - reflecting skepticism in the credit market about Globalstar's chances of success. Counting at least $400 million worth of bank loans extended to Globalstar, which don't appear to be trading, that means that debt investors believe the best they can get back from the company is roughly $900 million. But even after a 74% slide in Globalstar Telecom stock since early January, it's still trading around 14. That gives Globalstar Telecom a market capitalization of about $1.3 billion - and, since Globalstar Telecom's only asset is an interest of about 38% in the Globalstar satellite system, that gives the Globalstar system an indicated value of about $3.5 billion. So what is the Globalstar system worth, then? Is it $900 million or $3.5 billion? <snip>