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

To: Rocket Scientist who wrote (16065)	8/22/2000 5:31:11 PM
From: Souze	Read Replies (1) \| Respond to of 29987

Globalstar LP Senior Unsec Cut To CCC BY S&P Dow Jones Online News, 08/22/2000 17:19 NEW YORK -(Dow Jones)- Standard & Poor's on Tuesday lowered its corporate credit and senior unsecured debt ratings on Globalstar L.P. to triple-C from single-B-minus. The single-B bank loan rating on the company remains unchanged. S&P also lowered its corporate credit rating on Globalstar Telecommunications Ltd. (GSTRF) to double-C from triple-C. The double-C rating on Globalstar Telecommunications' preferred stock remains unchanged. All ratings remain on CreditWatch with negative implications. S&P said the downgrade is based on the company's continued tight liquidity situation, "and concerns regarding potential covenant violations during the first quarter of 2001, given the slow operational ramp-up of the company's recently launched satellite voice service." Globalstar launched service in March 2000, and has experienced a number of start-up challenges and faces near-term liquidity issues. At June 30, 2000, the company had about $2.1 billion of debt and $415 million of cash. Based on current operating losses and debt service requirements, the company will need additional financing in early 2001. Globalstar's $500 million bank facility is fully drawn. One of the financial covenants in the bank facility requires Globalstar to have revenues of $100 million for the 12 month period ending March 31, 2001. However, revenue for the three months ended June 30, 2000, was less than $1 million. Loral Space & Communications Ltd., Globalstar's 40% owner, has provided some limited credit support in the past, however, S&P is not factoring in any additional cash outlays from Loral or Globalstar's other partners. Loral has $500 million of exposure to Globalstar in the form of debt guarantees. (This story was originally published by Dow Jones Newswires) Copyright (c) 2000 Dow Jones & Company, Inc. All Rights Reserved

To: Rocket Scientist who wrote (16065)	8/22/2000 7:20:29 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 29987

Oops, as usual, you are quite correct. It's easy to get really sloppy when playing with speculative numbers and not really paying attention. Of course, 300 million Globalstar LP shares represent ALL the shares and if they each get $60 a year [at 2007 rate], then each GSTRF shareholder gets that $60 [not a third of it...ahem, embarrassed foot-shuffling...]. So that would make $3000 a share for GSTRF in 2007, not $1000. Either way is okay by me! Mqurice PS: I suppose at some stage, the 40 million addressable market [at the Globalstar minute prices] will fill up and to further increase market share [of communication minutes, WWeb access and remote data] prices will need to drop to get to 100 million addressable market and drop further to get to 1 billion addressable market.