Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: KyrosL who wrote (14452)	7/17/2000 6:36:43 PM
From: Maurice Winn	Respond to of 29987

Kyros, see my last rant. Okay, I know it wasn't all coy and polite, but I hope you like the !!! <One can argue that the G* pricing strategy of the last few months makes sense: Start with relatively high prices in the largest market (US), just in case the market accepts these prices and takes off. At the same time offer the service at lower prices in similar but much smaller markets (Canada and Australia) to test elasticity of demand. This way you don't leave much on the table, in case the US high pricing works. The basic assumption here is that you can't easily jack up prices in today's markets -- your customers will cry gouging and may very well abandon you.> It's all about supply and demand. Your suggestion assumes that prices can only go down, not up. That is how gravity works [until I finish my Graviton Spin Reversal System for which you can still buy stock] but NOT how prices work. Of course people will get used to a number and resist movement, so it's good not to jump them around as they will not be bounced too easily. But people are not totally stupid and they love a bargain and know it when they see it. They also understand that when things are really in short supply, the price goes up. Especially the kind of people who will be buying Globalstar phones for the next 3 years. They are paying heaps for SUV fuel as I write. Thousands of cars, trucks and aircraft are being filled right now!! That fuel is costing twice what it did at the lows [crude oil is currently 3x the price of Dec 1998 and that's why the stockmarket is going to take off = even with such a basic price rise, economies didn't go into recession = this is one amazingly powerful New Paradigm we are riding and G! is at the forefront]. 8 months of high prices and 'soft rollout' has cost us about 500,000 subscribers. That is one huge opportunity cost. We have managed to defer our peak earning capacity by 6 months. For constellation1, our peak capacity is about $4bn per year [10bn minutes x 40c per minute give or take a few]. So half a year is $2bn down the gurgler. That's real money, even to me. I could have filled a Gulfstream AND put fuel in it at $40 a barrel. Mqurice PS: When do the institutional holdings get reported? Should be about now. I'm very curious to see just what positions have been taken in the past couple of months. Anyone got a link?