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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Aloha who wrote (73964)	4/3/2001 12:36:03 AM
From: puborectalis	Respond to of 99985

Globalstar records $3.8 bln net loss, eyes bankruptcy MONDAY, APRIL 02, 2001 5:54 PM - Reuters (Adds details throughout) NEW YORK, April 2 (Reuters) - Mobile satellite telephone company Globalstar L.P. said on Monday it recorded a net loss of $3.8 billion in 2000 and it might seek bankruptcy protection if it cannot execute a restructuring plan, making it the third satellite concern to fall to Earth this year. The company warned in an annual filing with the U.S. Securities and Exchange Commission that its restructuring plan may fail if it conflicts with certain restrictions under existing agreements or if it cannot forge an accord with its creditors. Globalstar is a partnership that was formed in November 1994 by satellite firm Loral Space & Communications Ltd. (NYSE:LOR) and cellular telecommunications company Qualcomm Inc. (NASDAQ NM:QCOM). Loral owns about 38 percent of Globalstar L.P.. Globalstar Telecommunications Ltd. (NASDAQ NM:GSTRF), the public Globalstar entity, owns about 40 percent of the business.

To: Mr. Aloha who wrote (73964)	4/3/2001 1:17:57 AM
From: Mr. Aloha	Read Replies (1) \| Respond to of 99985

The Globalstar woes reminded me of another point on shorters not needing to cover to raise cash to pay taxes. Shorters get cash up front when they sell, and don't necessarily need to ever cover and trigger a taxable gain. I sold a bunch of Globalstar and its LEAPs last year and haven't triggered a gain by covering yet. I've had the cash for months to pay taxes on the shorts I did cover and the longs I did sell last year. Again, I don't think short covering to pay taxes will spark any rally before 4/15. I know I ain't covering my GSTRF, nor will I be buying back those 2002 Globalstar LEAPS...