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: bmb7 who wrote (16089)	8/23/2000 1:30:57 AM
From: Maurice Winn	Respond to of 29987

Hello Dumb Questioner! I pointed out that people should be aware of the difference between Globalstar Telecommunications Limited, in which anyone can buy shares, and Globalstar Limited Partnership, of which Globalstar Telecommunications Limited owns about 40%. Globalstar LP is the company which is privately held by Loral, QUALCOMM and a few service providers and others, including Globalstar Telecommunications Limited. Loral and QUALCOMM put up the brains. Service Providers and contractors put up the initial money in exchange for exclusive marketing rights or contracts to do work for Globalstar LP. Then, we dumb GSTRF shareholders came in at the end and stumped up more money, for fewer shares per dollar and without the compensating benefit of contracts or anything else. One of the Globalstar LP shareholders could sell you stock, but it would not be on the market and it would be a privately arranged transaction directly with the party concerned. For example, Vodafone might buy France Telecom's share [if it was for sale]. Or maybe QUALCOMM will buy all of Loral and thereby nab another 40% of Globalstar LP. Or maybe somebody could buy all of Loral and lots of GSTRF, thereby getting control of the company and taking over the whole thing. Which would be a pretty good deal at $20 a share if they could end up with something worth $3000 per share in 2007. Globalstar is a bit like QUALCOMM when it had a market capitalisation of $4 billion a couple of years ago - it was a screaming bargain. Irwin Jacobs was worried that somebody would notice and take them over! Q! rounded out to $130 billion or so at the highs [at $200 a share, it was worth $160 billion with all shares counted]. Even at $60 a share, Q! is still a $50 billion company, which is not bad compared with a couple of years ago. Let's hope no big company notices that Globalstar is a hugely valuable company selling at a very low price. It would be very frustrating to have demoralized people force me to sell out to some takeover bid by accepting some derisory offer and giving the takeover company a controlling shareholding. I hope that's clear! Keep in mind that no questions are dumb questions. Nobody knows anything until they've had it explained or somehow figured it out for themselves [which is usually hard work and why so many bargains like Globalstar are lying around the market, neglected and unloved]. Mqurice PS: Just to make you feel really at home here, [along with those who can't spell lose or loose and don't know where apostrophe's are supposed to be inserted in It's as in "Q! is developing It's new satellite system"], you not only double-posted [which even old hands like myself have done lately] but in your 'corrected' post, you mistakenly changed the spelling of "receives" to "recieves". You are probably trying to get the Klutz of the Month award ... sorry, we'd need proof first that that was not a subterfuge to gain the award. I'm awarding it to myself anyway, for being confused about how much GSTRF shareholders would get if GLP shareholders got $60 a share. There's a puzzle for you to solve to see if you now understand the GSTRF/GLP relationship. On a bit further reflection, if Q! with about 10% of GLP[including the warrants recently issued] was to buy Loral at $10 a share, they would get 50% of GLP. If they also bought a swag of GSTRF, they could get to 70% of GLP and do a total takeover [not that I know the takeover laws but I think it works like that]. Q! has got the cash flow and association which would make it attractive! They could spin off the rest of Loral, keep the G! part and for not much money, own all of G! My consolation would be that I own a Tonka-Truck of Q! as well as G! so I'd still own G! but through a different holding and not such a high percentage. Edit...Jon, that was NOT a windbag post. This one is. The point of my warning was that people find the shareholding confusing and they might mistakenly think, after clicking on GSTRF at the bottom of this post to get to the GSTRF Nasdaq trading information and seeing 96.91 million shares, "Globalstar gets 10bn minutes x 40c = $4bn divided among 97m GSTRF shares = hey, that's a LOT of money".