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

To: Ruffian who wrote (12945)	5/19/2000 8:35:00 AM
From: Boquacious	Respond to of 29987

G* Longs---pray for Lockheed, but I doubt it will help. Money is gone by 3rd Quarter 00. Doomsday approaches. Globalstar's first quarter financials did nothing to improve its rating with Banc Of America Securities. In fact, the numbers released by the mobile satellite telephone service provider failed to meet the reduced expectations of the New York-based investment firm. "Globalstar announced revenues of $609,000 and 550,000 minutes of use in 1Q00, far below even our reduced expectations of $3.6 million," reported Banc of America. The investment firm was not satisfied with Globalstar's explanation that the low numbers were primarily due to the fact that commercial service did not begin in a significant degree until March. "We believe that the extremely slow ramp-up for subscribers and revenue is a major disappointment for the satellite telephony venture, and we are very hesitant concerning the company's prospects going forward," Banc of America reported. But Ghais offered a different point of view. He said that many companies have aggressive business plans and do not meet original projections but go on to success in the long term. Banc of America also raised concerns over Globalstar's liquidity going forward. "According to our analysis, Globalstar has cash to last it into 3Q00, but there are definitely uncertainties concerning Globalstar's liquidity going forward," BOA reported. "Globalstar's funding through year-end is dependent upon the renewal of a $250 million credit facility with Chase Manhattan in June." Right now, Lockheed Martin Corp. [LMT] is currently guaranteeing $206 million of the credit facility, but is not obligated to continue guaranteeing any credit facility going forward. "It is not clear how Globalstar will renew the facility if Lockeed Martin refuses to extend its guarantee, as we expect," BOA said