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

To: pcstel who wrote (17682)	10/6/2000 3:59:01 PM
From: BobRealEstate	Read Replies (1) \| Respond to of 29986

Ok, here you go: That scenario may make sense if the Bear deal was all that G* had going, you forget that there $68MM in new money that is coming in that makes NO sense whatsoever to raise (or lose) from the SPs if they were to lose that money right away in a reorg.

To: pcstel who wrote (17682)	10/6/2000 4:17:00 PM
From: Michaelth1	Read Replies (1) \| Respond to of 29986

PCS: I've mentioned a few times that I think that G's recent moves look pretty much like they are priming themselves for BK by doing a few things: 1. Taking as much cash off the table as possible as quickly as possible. Going into BK with some cash makes life a lot easier than not having any cash to pay bills in the ordinary course (no one extends credit to a company in BK). 2. Paying off favored vendors, such as QCOM and LOR, as was implied in the latest 8-Ks (although these payments can be reversed in BK). 3. Funding enough to get just past the 3/31 bank covenants. I'm sure that the question arises, why would the SPs fund G if they thought that BK was an option. No one knows for certain, but perhaps QCOM told the partners that it wasn't going to continue moving forward on developing equipment (smaller phones, modems, etc.) if its VFing wasn't reduced prior to entering BK. When the SPs put in financing, it (1) supported the stock price allowing G* to sell through BS and (2) allowed G* to pay down QCOM (and maybe even LOR) VFing, even though a good portion of the partner support was from QCOM and LOR (by the way, where is that additional $12 million from China? It'll probably come in 4 years when G* is doing well and the Chinese will want the price from now--that's what they did on the partnership purchase). The SPs' actions have clearly illustrated that they don't care about the short-term or mid-term value of their equity in G. All they care about is the huge margin on providing the service. I think that G will file for BK around January - February as it become clear that they won't get waivers from the 3/31 bank covenants. G* will have someone to point the finger at (the bank) and will enter BK with some sort of pre-packaged deal and emerge rather quickly. BLS will step down in BK and an energized CEO will take over. I know, I know. Conspiracy theories. But I think that if someone said a year ago any of the following would be true on 10/1/00, they would have been labeled a short: (1) that virtually no SP in the world would have started any significant marketing, (2) that no more than 25,000 phones (probably) have been sold, (3) that virtually no fixed phones have been sold, (4) that the partners could only muster $72 million in financial support in times of need, (5) that S. Africa (an original market) still isn't on-line, (6) that India still isn't close to having an SP, (7) that GSTRF would trade regularly below 7. I think that it's time to realize that anything is possible (primarily on the negative side) with G*, so my BK theories should be at least contemplated.

To: pcstel who wrote (17682)	10/6/2000 4:26:52 PM
From: literaryfx	Read Replies (1) \| Respond to of 29986

pcstel, the continued selling of stock is probably due more to the condition of the stock market than the prospects of G*. If oil has peaked, the US$ and the stock market are going south. Take a look at the top forming on the S&P 500. stockcharts.com[L,A]WACLYYMY[DF][PB50!B200][VC60][IUB14!LA12,26,9!LH14,3] Regards, Ken

To: pcstel who wrote (17682)	10/6/2000 5:15:45 PM
From: elena_murooni	Respond to of 29986

You are open to a positive spin? 1) Globalstar had (pre B/Stearns deal) a perception that the SP's might not contribute. 2) Globalstar announces the B/Stearns deal. It immediately follows with the SP deal (negating some doubts of future partner/SP financing) 3) The full package for financing is naturally pushed as far out in time as possible with regard to the partners, & thus a requirement to pull from the market first would be prudent. To ensure share price stability, it was necessary to disclose the SP financing phase simultaneously. 4) Once the market has satisfied the cash requirement Globalstar seeks to acquire (a stated 105M less fees), then the next phase of financing kicks into play. 5) The Q3 numbers will be promising combined with news of contracts 'in the works' which were delayed due to budgets, etc. Should the B/Stearns offer be completed by that time, an announcement of the next phase of financing will be announced. 6) The roll-out of the marketing efforts accelerate pre-Q3 numbers. With confidence levels built back up, financing efforts underway, the cost of the phone (the sales obstacle) falls into the season and budgets which best suit its cost. AOL subscribership historically catapults during the holiday season as incentives are offered buyers of new computers. G* subscribership, when addressing a world-wide holiday season, may possibly catapult as the phone cost fits the holiday season budget (whereas it does not fit pre or post holiday season budgets). 7) The methodology to build back confidence levels destroyed by the media (the poison pen), the timing of solidifying future financing needs, the roll-out of a big marketing campaign, and the partners awaiting the results before tallying their share of the financing, and, well.... You have at least 'one' positive spin...........