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To: waverider who wrote (78641)	8/16/2000 12:03:47 PM
From: Art Bechhoefer	Respond to of 152472

Purchasing GSTRF, given the huge debt in front of the common shares, does not seem to be a very safe investment, though it should do all right eventually. If it is a good investment, then investing in Loral, which owns some 42% of GSTRF shares, looks even better, particularly because Loral is abnormally depressed for reasons regarding its defense business and other areas of interest. I still like the G* junk bonds, yielding close to 50% to maturity. The stock can't go anywhere unless the bonds remain viable.

To: waverider who wrote (78641)	8/16/2000 2:13:29 PM
From: marginmike	Read Replies (1) \| Respond to of 152472

What are you refering to?

To: waverider who wrote (78641)	8/16/2000 3:08:19 PM
From: S100	Read Replies (1) \| Respond to of 152472

Try this link for PCM holdings freeedgar.com VALUE SHARES/ NAME OF ISSUER (x$1000) PRN AMT --------------- -------- ------- ADE Corp-Mass $49,144 2569612 Aceto Corp $9,066 824175 Aehr Test Systems $8,660 1283018 Alico Inc. $7,049 444006 Alltel Corp. $103,013 1663170 American Standard Companies In $47,683 1163000 Analogic Corp $42,774 1069359 Andover Bancorp Inc. $17,391 603581 Andrew Corp. $423 12600 Arctic Cat Inc $14,355 1208800 Atalanta Sosnoff Capital Corp $341 34100 Avatar Holdings Inc. $16,924 735807 BHC Communications, Inc. - CL $198,007 1302680 Bancwest Corp New $24,875 1513300 Bandag Inc Cl-A $61,513 2674467 Bank United Corp-Cl A $21,559 612700 BankNorth Group Inc. New $22,428 1464687 Bear Stearns Companies Inc $82,479 1981484 Bio-Rad Laboratories Inc Cl A $28,242 1129682 Brush Engineered Materials Inc $25,627 1640152 CFM Technologies Inc. $8,384 540900 CPB Inc. $16,494 659762 Carramerica Realty Corp. $6,665 251500 Cavalier Homes Inc. $2,692 1656582 Charter One Fincl Inc. $143,031 6218720 Chittenden Corp $33,034 1351770 Chris Craft Industries, Inc. $110,351 1670408 Cognos Inc $298,207 7207417 Commercial Federal Corp $36,454 2342400 Computer Associates Intl. $5,170 101000 Connecticut Bancshares Inc $5,568 380700 Cornerstone Realty Income $4,040 404000 Curtiss Wright Corp. $10,163 273300 Datascope Corp. $45,763 1271189 Deltic Timber Corp. $7,710 360700 Dime Bancorp Inc. $18,038 1145290 Dole Food Co. Inc. $30,899 2207052 Dundee Bankcorp Cl A $36,194 3298202 Electro Rent Corp. $ 65,758 5367965 Elmira Savings Bank F.S.B. $1,332 74025 Equifax Inc $20,493 780700 FAB Industries Inc. $10,436 982181 Fahnestock Viner Holdings $56,480 3012290 Fedders Corp $2,404 413644 First American Financial Corp $24,899 1739666 First Defiance Financial Corp $3,613 448100 Forest City Enterprises Inc CL $81,861 2452771 Forest City Enterprises, Inc. $13,784 387593 Frozen Food Express Industries $2,162 720800 Furniture Brands Intl. $50,927 3367100 Garan Inc. $18,625 823190 Genesee Corp-Cl B $1,021 54800 Globalstar $45,173 5019228 Greenpoint Financial Corp. $4,140 220800 Guitar Center Inc $12,650 1204800 Gyrodyne Co of America $1,065 60861 Harbor Florida Bancshares Inc $9,687 928100 Harrah's Entertainment Inc. $77,071 3681003 Health Care Properties $7,278 267100 Herman Miller Inc. $102,487 3960831 Hibernia Corp-CL A $42,227 3882900 Hudson River Bancorp Inc. $8,374 705200 Imation Corp. $158,206 5385737 Independence Community Bank $55,432 4183527 Industrial Bancorp Inc $5,582 470034 International Game Technology $189,990 7169417 Interstate Bakeries Corp $24,483 1748800 John Hancock Bank & Thrift Opp $988 147700 John Wiley & Sons Inc Cl-A $23,243 1033000 Kankakee Bancorp Inc. $2,496 121000 Kimball International Inc-Cl B $12,678 859540 Knight-Ridder Inc $43,433 816600 L S Starrett Co Cl-A $6,414 366500 LaSalle RE Holdings Ltd. $2,530 178300 Lancaster Colony Corp $655 33600 Landamerica Financial Group $18,024 785806 Lawson Products Inc. $4,068 165200 Libbey Inc. $49,810 1550500 Magnetek Inc. $18,350 2293700 Mandalay Resort Group $4,457 222871 Marcus Corp. $70,021 5774914 Marion Capital Holdings Inc. $1,824 87900 Massbank Corp-Reading Mass $9,562 341493 McClatchy Co-Cl A $78,884 2381416 McGrath Rentcorp $593 34900 Mentor Graphics Corp. $135,787 6832065 Mercantile Bankshares Corp. $26,606 892436 Michael Anthony Jewelers Inc. $537 195400 Midas, Inc. $33,486 1674300 Mine Safety Appliances Co. $26,602 1108432 NCR Corp New $22,856 587000 National City Corp $6,690 392100 Pacific Century Financial Corp $25,926 1772750 Paine Webber Group Inc. $71,269 1566358 Penn Engineering & Mfg Corp. $49,324 1399255 Pope Resources L.P. $32,381 1693146 Premier National Bancorp Inc. $2,795 215036 Prime Hospitality Corp $547 58000 Progress Software $49,587 2764411 Puerto Rican Cement Co. Inc. $9,685 348232 Qualcomm, Inc. $111,487 1858114 Quorum Health Group Inc. $38,055 3690169 RFS Hotel Investors Inc. $5,688 484100 Rainbow Technologies Inc. $77,155 1586727 Raymond James Financial $39,667 1762996 Regis Corp $10,458 836600 Roadway Express Inc. $45,665 1948361 Roslyn Bancorp Inc. $25,750 1550302 Ryans Family Steak Houses Inc. $35,486 4205799 Scientific Games Holdings Corp $55,348 2253372 Second Bancorp Inc. $4,623 304386 Security Capital US Realty $1,569 88400 Shaw Industries Inc. $74,776 5982048 Skyline Corp. $30,380 1413032 Software Spectrum $14,029 810331 Sothebys Holdings Inc CL A Ltd $55,687 3182100 Sterling Financial Corp $1,523 132400 Stewart Information Services C $23,746 1623648 Suffolk Bancorp $12,085 462568 Superior Industries Internatio $45,196 1755192 TF Financial Corp. $3,777 277200 Texas Industries Inc. $54,888 1900890 Thomas Industries $2,123 120000 Topps Co. $23,151 2013100 Trinity Industries $80,758 4365317 Triumph Group Inc New $47,483 1703433 Troy Financial Corp $4,407 446251 UCBH Holdings Inc. $23,319 873798 Unionbancal Corp. $6,250 336700 United Asset Management Corp. $83,976 3592571 United Stationers Inc. $76,203 2353752 United Television Inc. $50,071 388898 Universal Health Services Clas $321,953 4915314 Universal Health Trust $13,189 696439 Virco Mfg Corp. $14,052 952698 Vital Signs Inc $13,584 749465 Washington Post'B' $27,616 57775 Webster Financial Corp $32,545 1466800 Weis Markets Inc $22,776 695448 West Pharmaceutical Svcs Inc. $22,272 1029900 Whitney Holding Corp $29,709 869003

To: waverider who wrote (78641)	8/16/2000 10:32:49 PM
From: T L Comiskey	Read Replies (2) \| Respond to of 152472

Rick..OT.. To: Andrew L. Burk who wrote (15819) From: Gregg Powers Wednesday, Aug 16, 2000 6:30 PM ET Reply # of 15833 To all: Perspective. We assiduously avoided investing in Globalstar on a pre-commercial basis. Given the project’s international scope and complexity, we wanted to see management pull together all of the technological and regulatory pieces together first. I find the analytical handwringing over, and micro-analysis of, the last six months subscriber data to be inane in the extreme. Iridium's failure, occurring near contemporaneously with GSTR's launch, has engendered such deep-seated self loathing among IRID’s former sell-side sponsors that they feel compelled to relentlessly vent their frustrations at Globalstar. Determined never to make the same mistake again, these witless scribes seem adamant about finding another way to cost investors money. My personal favorite, silly-analyst quote, came from an insightful chap who opined "Globalstar is just like Iridium, only worse." Oh well. Iridium and Globalstar were both designed to sell satellite-supported telecommunications services. That's basically where the similarities end. Globalstar's architectural design is dramatically better. It's direct cost per minute to deliver service is a fraction of Iridium's. Of parallel importance, it's service component, marketing strategy and target customer are completely different. Viewed unemotionally, Iridium’s failure was a significant positive for Globalstar since it eliminated a competitor (and a competing marketing message). On the downside, IRID’s bankruptcy cast such a pall over the satellite telephony space that I suspect some customers, at least in North America, have been pushed to the sidelines by the fear of purchasing another orphan phone. That being said, this issue will fade with time. To start with the obvious, Globalstar L.P. (which we have invested in through its publicly-traded managing partner, Globalstar Telecommunications Limited), wholesales minutes-of-use to marketing partners; little companies like Airtouch, France Telecom, China Telecom and GlobalTel. The marketing partners own the terrestrial gateways, and are principally responsible for marketing the service. STOP. Let me repeat that. The marketing partners own the terrestrial infrastructure and are principally responsible for selling the service to customers. This is a key point because it speaks directly to GSTR’s ability, or should I say near-term inability, to directly influence the sales effort. This process is most akin to herding elephants...big, sleepy,bureaucratic, but also powerful and rich...elephants. To stay within my metaphor, such elephants tend to show a profound respect for Newtonian laws. When at rest, they tend to stay at rest; BUT, once prodded into motion, the resultant mass creates a lot of momentum. Within this context, Globalstar’s launch seems to directly parallel Airtouch’s launch of CDMA in Los Angeles back in 1996. I remember vividly the horrified pontification that accompanied the tepid subscriber numbers reported during the fall of that year. Pundits assured us that CDMA was a fraud destined to bring plague and pestilence to all its adherents. Airtouch management simply shrugged and noted that it would ramp the marketing effort when the time was right. Similar apocalyptic nonsense has been offered up for Globalstar a mere six months post commencement of actual commercial operation. While mine is certainly a minority opinion, I think 13,000 subscribers by the end of June was pretty damn reasonable. So let’s establish my frame of reference. There are three relevent investment questions: (1) does the system work, (2) will the company run out of money prior to implementation of the marketing plan and (3) what is the true demand equation. On the first point, even the bears seem to acknowledge that the network is performing extremely well. This is in stark contrast to the Iridium service, the voice quality of which rivaled smoke-signals on a windy day. The financing question obviously interrelates with the demand picture as the liquidity questions will evaporate as the subscriber count turns asymptotic. Here is where contact with Globalstar’s carrier partners is most valuable. Simply put, I have spoken with the senior management at a number of Globalstar’s most significant partners and to a man (and woman) they have indicated support, enthusiasm and confidence in the project. While some of the positive tone could be ascribed to bravado, the commentary has overall has been quite balanced. For example, it has been acknowledged that the marketing plan for the United States was somewhat ill-conceived and has been benefited from less than stellar execution. On the hand, Australia and Canada are ramping very nicely. Welcome to the real world of a business start-up! Plans get conceived, some work well and can be executed as contemplated, others work less well, and get reconstituted. It should be obvious that the deterministic time periods involved are substantially longer than six months. It has been argued that the make-or-break data point for Globalstar will be if, and/or when, the partners put up more capital. Bernard Schwartz has stated repeatedly that he expects that the partners will provide incremental dollars for Globalstar L.P. when needed. I think, though, that many miss the point that the marketing partners are already pouring incremental funding into Globalstar. Each terrestrial gateway, each new distributor, each new marketing plan with heavily subsidized handset prices, all represent substantial and sustained investment. On a worldwide basis, these expenditures certainly exceed the incremental dollars necessary to support Globalstar L.P. through the end of 2001. It is incomprehensible that the partners would fund the marketing effort only to allow the network provider to expire. Simply put, I believe Globalstar will get the funding that it needs. But, all of this is moot if nobody needs the service right?! Well, I suspect that the “demand doubters” are largely ensconced in the quiet comfort of their air-conditioned offices in Manhattan. My conversations with service providers confirm that the phones are proving marketable to exactly the customer types anticipated. Far from being discouraged, the marketing partners seem almost universally positive. While there are distribution challenges, i.e. Globalstar customers, at least in the U.S., do not by-and-large wander into a local cellular phone store and buy a phone, these issues are being addressed on a market-by-market basis. This having been said, some vertical markets will adopt the technology more rapidly than others. Still I strongly believe that what has demonstrably proven salable to customers in Australia and Canada will prove to be salable worldwide. It is also somewhat incongruous that Deutsche Telecom is willing to pay $50+ billion for Voicestream (VSTR), and its sliver of the U.S. market, when the interest expense alone on this investment would purchase all of Globalstar and its near worldwide footprint. Analyze D-T's capital adjusted cost-per-minute for VSTR against the market opportunity and you'll get the giggles... It is reasonable to presume that those living in urban/suburban areas of the industrialized world won’t substitute a satellite phone for their accessible, reliable and smaller cellular phones. So what? That’s not the intended market. Still, I would point out that many people pay a premium to use their cellphone for calls that could just as easily be deferred until within reach of a “free” wireline phone. It would appear that convenience, and the need to communicate, seemingly overwhelm pragmatic economics. Nevertheless, the satellite phone user will primarily be motivated by necessity rather than convenience. Those who have traveled outside the contiguous U.S. should understand that communication infrastructure is lacking, if not nonexistent, through huge tracks of civilized geography. The argument that pervasive cellular deployment has obviated the need for Globalstar's service is, to my eye, perpetuated by the simple-minded. Microsoft’s Bill Gates once commented that we would know that the Internet had arrived when it became part of our life and became something we felt uncomfortable living without. In this vein, I will interject a personal experience. I am a private pilot and own and fly a single-engine airplane. While exceedingly infrequent, an engine failure is a possibility to be considered by any conscientious pilot. Since certified light aircraft are designed to fly, glide a considerable distance, and land without power, the critical path item is not to land safely, but to land safely in a place where one can be rescued. Within this context, I NEVER fly without my Globalstar phone. With the phone and a handheld GPS, I can provide exact latitude and longitude information were I ever forced to ditch in a Florida swap. No, GSTR shareholders aren’t going to get rich off my twenty-to-thirty minutes per month. On the other hand, I would argue that there are roughly 300,000 private pilots in the U.S. who should consider a satellite phone as mandatory safety equipment. Kind of an interesting ‘little’ vertical market, wouldn’t you say, for an industrialized country with no need for satellite telephony? Overall, I find it amusing that the acquisition of 13,000 customers in just over four months of true commercial service is somehow deemed a dismal failure. Businesses rarely conform to spreadsheet models and ‘elephants’, i.e. GSTR’s marketing partners, do not tap dance on command. However, Globalstar’s partners are settling into the task of making this business successful. Incremental functionality, in the form of data applications, should become available by year-end and will expand the addressable market. I am additionally comfortable that Globalstar’s partners, i.e. Airtouch et al, will provide whatever supplemental funding is necessary to get the job done. As subscriber counts begin to climb, investor’s will again focus on Globalstar’s enormous operating leverage. In the nutshell, while Globalstar is hardly risk-free, I believe that the rumors of its imminent demise have been vastly overstated. The Street-side naysayers seem to be engaging in a rather mindless orgy of negativity that seems to contrast mightily with the ongoing investment by Globalstar’s deep-pocketed marketing partners. Time will tell, but our position illustrates our convictions.