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

To: Sword who wrote (12199)	5/6/2000 2:30:00 AM
From: FJB	Read Replies (1) \| Respond to of 29986

Everybody in the food-chain from handset providers to service providers stand to profit from Globalstar's success. Companies like profits. That is the way of the world.

To: Sword who wrote (12199)	5/6/2000 6:22:00 AM
From: Maurice Winn	Read Replies (2) \| Respond to of 29986

Sword, think it through: <Qualcomm's business model is absolutely not dependent in any way on Globalstar. Furthermore, even if qualcomm and other parties had an interest in Globalstar, they have no interest in GSTRF stock except to acquire it at an absolute rock bottom price. They can achieve this by buying the company from the bond holders. The equity holders will get virtually nothing. > You are actually plain wrong on the first statement. QUALCOMM owns 6% of Globalstar LP and therefore has a direct financial interest in GLP success. Secondly, they get to sell gateways, upgrades, handsets, ASICs, NetZero, and collect royalties if it gets moving and sell nothing and collect nothing if it fails. Thirdly, your assumption that they can buy GSTRF from the bond holders or other GLP stock at some absurdly cheap price assumes that nobody else will bid for the company and assets. Vodafone will be a bidder! Q! will not get near it before Vodafone has had a great big bite. Those two are not the only ones which will buy stock when they think it's absurdly cheap which will be well before zero value. I will be buying new stock in a rights issue well before zero. You better replan your cover price! Iridium is irrelevant. Don't fool yourself into thinking they will follow the same trajectory in business plan and de-orbit. At what minute price do you think the constellation will fill? That's the question which when answered will determine the stock price. [Assuming a $800 handset price and 50:50 fixed to mobile minutes]. Maurice