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: Maurice Winn who wrote (17923)	10/13/2000 10:49:19 AM
From: K_Meister	Read Replies (1) \| Respond to of 29986

C.E. UNTERBERG TOWBIN'S Latest Research Report <Provides some interesting insights. -KMeister * Fifth survey uncovers some interesting points about addressable niche markets and sales channels. After discussions with North American distributors, we learned that government agencies, emergency services, outdoor adventurers and the marine market are niche markets that have come to Globalstar as a primary communications solution. In addition, indications are that Globalstar may be in the process of developing a hybrid sales channel that consists of both distributors (retail outlets) and independent agents. We view this as positive step by Globalstar to gain control of its product distribution, especially if partners aren't marketing the product aggressively, and also learn exactly who its customers are. We discuss this in depth later in this report. * The expansion of service into five new areas of the world should help buoy 3Q subscriber numbers and MOU levels, albeit a transient effect. We believe it is a fair assumption that with each gateway opening or expansion of service in a region, there is the release of pent-up demand that temporarily drives subscriber and MOU growth. In the third quarter, Globalstar opened gateways in Peru, Russia, Saudi Arabia and Iceland and the North Atlantic. Globalstar also expanded service in South America. Our distributor contacts have indicated that Russia may have been particularly good given the political/military strife in the region. * Third quarter revenue and subscriber estimates. Based on last quarter's results and our most recent survey, we estimate third quarter end subscribers to be about 25,000 generating 2.6 million billable MOU in the quarter for $1 million in total service revenue. Total revenue for the quarter should be higher because of royalty revenue from handset sales ($10/handset) and possible one-time gateway payments of $350,000 per gateway, which may have began in the quarter. We have tried unsuccessfully in the past to determine exactly when and to what magnitude these gateway payments begin. * Data service should be available within months. It is high on many subscribers priority list. Many of the distributors we spoke with indicated that they have a backlog of subscribers that will sign on as soon as data service is available through the Globalstar phone. According to the distributors, data could be available as soon as the end of October. It is our understanding that handsets sold today are already data service ready (equipped with necessary software) and that subscribers with "older" handsets only need to bring them to their distributor to be flashed with the software, which can be done while they wait. We estimate that much of the CAPEX spent in this quarter was to upgrade gateways for the data service. * Upcoming promotion has North American distributors excited. We learned through our survey that in the next couple of weeks Globalstar will begin a promotion called Time or Money, where new subscribers can choose between a $300 rebate or 300 free minutes spread over three months (100 minutes per month, cannot be carried over month to month). Distributors were looking forward to this promotion because they were lacking a sales catalyst following the Y2K crisis and the end of the $799 handset promotion. ___________________________________________________ C.E. UNTERBERG TOWBIN William Kidd Managing Director, Satellite Analyst (212) 572-8008 (212) 688-0456 fax

To: Maurice Winn who wrote (17923)	10/13/2000 2:42:10 PM
From: Jeff Vayda	Respond to of 29986

Mq: I like the way this guys thinks. (from the other Q thread) Jeff Vayda "Since Gilder's past record has been so phenomenal, investors' expectations are even greater," says Jerry Talansky, a longtime Gilder subscriber who says he "respects the man's intellect" but is skeptical of his stock picks. "Unfortunately, a bear market makes everybody look like an idiot." [classic! my add] "Anybody that takes anything as gospel -- be it from Gilder, William O'Neil, Abby J. Cohen, Ralph Acampora, CNBC, etc., etc. -- are sheep and deserve to be shorn," [Did you two get together?] says Talansky, who says he's made a fortune on Gilder stocks.