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

To: SpudFarmer who wrote (11545)	4/6/2000 6:06:00 PM
From: Maurice Winn	Read Replies (3) \| Respond to of 29987

Spud, <What happens when those who haven't heard start to take a look for the first time and see a raging bargain? > We have a bit of anecdotal evidence right here. Valueman, whose task it is to make a lot of money and who knows the intricate details about Loral and Globalstar, does NOT see a raging bargain at current prices. Therefore, I don't see why mobs of newcomers should see a raging bargain either. Maybe sheer numbers would mean a fair crowd of suckers [in Valueman's view] would come in and bid the price up. But if Valueman is correct, then they would gradually become disenchanted and the price would go back to the right value when minutes and profits fail to materialize. But with Iridium gone, and Inmarsat making money [see previous post - hi TK] maybe there is scope for Globalstar to struggle by. Maurice PS: Inmarsat must see the writing on the wall and is trying to offload some shares before they lose subscribers to Globalstar. Meanwhile, let's hope the Service Providers aren't too hopeless about getting roaming agreements sorted out. As many people now know the value in networks is because of the network effect. Without cheap roaming, there won't be a network effect. Globalstar says only 2% of their business will be roaming, but they better be careful, because the other 98% might be dependent to a substantial amount on the availability of roaming.

To: SpudFarmer who wrote (11545)	4/6/2000 10:31:00 PM
From: DWB	Respond to of 29987

Spud, It depends. If there is some sea-change event, the realization could happen rapidly. Remember last March when ERICY capitulated? All of a sudden, lots of people got interested in QCOM, and once that ball got rolling, it became self-sustaining for the rest of the year. For instance, what if the first subscriber/MOU count for G* comes out ahead of what everyone/Wall Street is expecting? I'm not saying it's going to happen, but that could take a lot of the ambiguity out of the investment for a lot of investors. On the other hand, you could have something like SFA, which has slowly but surely run up due to the growing acknowledgement of the boom in digital cable TV. Now that they're the only major set-top box provider still standing (since MOT bought GIC), they get a ton of press, along with the announcements regarding doubling and tripling unit production to meet demand. In a similar fashion, G* is just about the only game in town for satellite coverage, and if announcements start coming out regarding government purchases, or big production increases for handsets, the realization will begin to dawn on people. It's all going to come out sooner or later... and people will be wondering why they didn't buy when it was in the low teens... DWB