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To: KyrosL who wrote (23323)	9/30/2000 1:55:21 PM
From: LLCF	Read Replies (2) \| Respond to of 436258

<. I think that in the event of bankruptcy, G* has a 100% chance that it will reemerge (minus a good chunk of its debt) and prosper.> Minus 100% of it's equity holders as well don't forget :) <The Iridium analogy is false because G* has ten times the Iridium capacity and less than 70% the Iridium costs> Many here are aware of the advantages of G* over the Iridium boondogle... IMO the breakthrough must come in the handsets... when they reach a resonable size, like a normal cell phone we're cooking. I can tell you from experience that wealth of the user alone doens't mean beans: ie. no rich guy is going to schlepp that phone around just because he has the money. Now give him a manservant and you're talking! <Terrestrial mobile service providers paid more than $70 billion for 3G spectrum in just two countries: Great Britain and Germany. And they will need hundreds of billions to build worldwide 3G infrastructure.> While this is true, it only speaks of 'relative' value [and ignores the above critical point of handset size] which in the coming era of stock market valuation 'tough love' can easily melt away. DAK

To: KyrosL who wrote (23323)	9/30/2000 10:44:52 PM
From: Earlie	Read Replies (1) \| Respond to of 436258

KyrosL: I hate to be picky, but to quote your post,...... "I think that in the event of bankruptcy....." In the event of bankruptcy, the debt holders will inevitably be awarded virtually ALL of a newly issued stock that will replace the old stock (happens nearly every time). In that case, a short like me will make a nice 100% profit (actually it is usually higher than 100%, but let's not get into how that occurs) while the common shareholders will get diddly squat. Arguing that it will survive bankruptcy after a bankruptcy procedure (shedding the debt) sound like what I hear every day from N.Y.-based analysts. Again, now being picky, who cares about the capacity when the number of subscribers at hand (and probable) is minute? Iridium never achieved enough revs to pay the electricity bill and I would love to hear your arguments about where the many required subscribers for Globalstar will come from. I loved your comments about Globalstar's ability to discount its price when it is "unburdened" of its debt. Before that can occur, the company will have to unburden its common shareholders of any ownership in the company, cause in a bankruptcy procedure, the debtholders get everything and the shareholders end up with nothing but a big tax loss carry forward. All the forecasts have zero validity until the debt disappears, which can only occur if the current shareholders are cremated. Your arguments are based on the convenience of omitting the ugly results of a bankruptcy procedure, which is inevitable. Best, Earlie