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To: Glenn D. Rudolph who wrote (102945)	5/8/2000 11:30:00 AM
From: H James Morris	Read Replies (2) \| Respond to of 164684

>Not sure what to make of that. Me too. Btw You want a good short? This is the most promising short I currently have. > New York, May 5 (Bloomberg) -- More than a quarter of Globalstar Telecommunications Ltd. shares have been sold short, triple the number of a year ago, as speculators bet that the satellite-telephone company's stock will drop more. Globalstar's shares have plunged 77 percent this year as the company struggled to sign up subscribers and rivals filed for bankruptcy or closed. The company, which has yet to record any sales, said yesterday it may run out of cash in five months without additional funding. It declined to comment today. ``Globalstar has a business model that doesn't work and that isn't going to work,'' said Ricky Sandler, president of Eminence Capital LLC, which has sold short Globalstar's shares, a transaction in which Eminence will profit if the stock declines. Globalstar fell 1 3/4 to 10 1/16 on the Nasdaq Stock Market. About 25 million Globalstar shares out of a total of 97 million outstanding were sold short as of April. In a short sale, an investor sells borrowed securities, hoping to profit by repurchasing the securities later at a lower price and returning them to the lender. New York-based Globalstar had 8.33 million shares sold short in April 1999. The company is 45 percent owned by Loral Space & Communication Ltd., the second-biggest U.S. satellite- communications company. It plans to release first-quarter earnings on Monday and is expected to have a loss of 75 cents a share, the average estimate of analysts polled by First Call/Thomson Financial. Globalstar began selling its phones earlier this year. Globalstar had $232 million in cash at the end of March to last it through the third quarter, Chairman and Chief Executive Bernard Schwartz said yesterday. The company is spending about $125 million a quarter and will be about $150 million short by the end of the year, he said. Globalstar will rely on revenue from its satellite-telephone service and funding from partners, Schwartz said. Globalstar could also get more money if it renegotiates a $250 million credit facility due June 30. Loral fell 1/2 to 8 9/16 on the New York Stock Exchange. Globalstar is the only U.S. satellite-telephone company that hasn't filed for bankruptcy protection or folded. Satellite-phone company ICO Global Communications Ltd. is now being reorganized, and Iridium LLC shut down on March 17. May/05/2000 17:16 GMT