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

To: Michaelth1 who wrote (16368)	8/30/2000 1:21:41 AM
From: dwight martin	Respond to of 29987

(although payment for the GWs is quite slow--perhaps a foreshadowing by the SPs, the holding off paying a soon-to-be-BK entity) If G* files, you can be sure that every penny owed will be vigorously collected by high-dollar specialist firms, including any money due for gateways.

To: Michaelth1 who wrote (16368)	8/30/2000 7:29:49 AM
From: Maurice Winn	Read Replies (4) \| Respond to of 29987

<font color=green>Bankruptcy. <A few pennies per share (literally) will be tossed the way of the common shareholders (and L.P. equity holders).> Michael, you are assuming the auction doesn't raise much interest. But suppose the situation is more akin to NextWave = they bid a fortune, then go bankrupt, are awarded the spectrum for quarter what they bid, which is disputed, then they offer all they bid, which was declined and now there is going to be a spectrum free-for-all [unless NextWave succeeds with an appeal]. That shows the big shifts in value which can become conventional wisdom. In the heat of an auction, with a replacement cost of about $2 billion with a long lead time, the existing constellation and business is worth serious money and I believe bids might reach surprisingly high prices. Pennies tossed to we common shareholders might turn out to be tens of dollars! You make the common assumption that things would just roll on as normal, with the common shareholders and a big chunk of debt out of the way. The assumption is that Vodafone would be able to just expect to have minutes supplied to them as per previously but at a cheaper price. That's not necessarily the case! Sprint or Worldcom or somebody might buy it, sell minutes to China Telecom and a few other service providers at a really, really cheap price while building their own gateways in the USA and Mexico; oh, wait, they won't need to build one there or in Russia as they already own some. The new owner would then supply themselves all the minutes and buy all the available handsets and take terrestrial business from Vodafone across the USA and undercut other phone services in Russia, Mexico and China. There wouldn't be enough handsets or minutes to supply Vodafone anyway, so they could go to hell! QUALCOMM might buy the whole thing and they'll then own the handset business, the constellation and enough gateways while being buddies with China for free minutes while China allows CDMA in on the terrestrial market and Q! builds some handset factories there. Q! will supply the ASICs and software too. Then Q! could launch constellations 2, 3, 4 and 5 to give total earth coverage and vast minute capacity at prices low enough to shock the terrestrial phone world. Wingcast might like to buy a very big heap of them. Hmmm, maybe Ford will just buy the constellation - after all, Globalstar originally grew out of a Ford wish for car communications, [I think that's true]. Ford might be back in the driver's seat [with Q!] via Wingcast. Maybe Microsoft would like to help to ensure WirelessKnowledge and other Microsoft products get a look-in. MSFT has understood that Major Paradigm Shift Happens and they have adopted it as their Corporate Mission Statement slogan which does their thinking for them. If Vodafone does go to hell, we don't want to hear them whining like a fleet of 747s that there's no iced water in hell. They had their chance and they still have it. If they don't take the opportunity, well, that's the way things work in the big jobs. This is a LOT of fun. And WE own it!! Mqurice PS: Maybe Vodafone and existing service providers could have enough minutes to supply their existing customers and a few more, but they could be told that that's all they'll get. Heck, they might even want to sell a gateway at a really cheap price [if they haven't already lost it by failing to meet their contracted "minutes sold" targets, which I guess they have].