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

To: kitterykid who wrote (24854)	4/1/2002 3:41:11 AM
From: Maurice Winn	Respond to of 29986

KK, I'm glad you enjoy my rants. I'm also glad nobody took me up on my double-your-money-back guarantee. <"Now, where do I buy shares in the revamped, debt-free, cash rich Globalstar with the 10c a minute price?" Maurice, don't you believe the notes and the reorganization will give you just that? > Maybe. But there's no sign of the 10c a minute pricing and they've had a couple of years to get around to it. They do need to raise more money to get to profit and quite a lot of it. So I think there will be an opportunity to contribute via a share offering without a large price premium compared with creditors. Since the success of the company will depend on new money coming in, if mine is tied up in the existing debt, then I wouldn't be able to help fund continued operations. If my money's tied up as a creditor, I won't be able to decide whether the proposed plan is worth funding or not because I'd already be stuck with it as a creditor along for the ride. The risk of not being in when they announce the plan is that they come up with a great proposal, with strong support from QUALCOMM, ATC rights from the FCC, and suddenly the whole thing is a huge success and I end up paying heaps to rejoin. But given their track record, that's unlikely. It's true it's darkest before the dawn, but it's also darkest just before death. If I wait until sunrise, I'll feel safer. I don't want to end up in the Graveyard of Hope just yet. QUALCOMM is obviously alive to the benefits of cheap minute pricing [or flat rate] because they started Leap Wireless International on exactly that premise. Because QUALCOMM has a strong interest in selling ASICs, handsets, collecting royalties and selling engineering and other services, they could be expected to push for very, very cheap minutes as a way of creating huge demand in a short time. But they have been able to do that for the last 18 months and haven't, so maybe they don't think cheap prices will work with Globalstar, or perhaps they have got obduracy from Loral. Iridium and ICO going broke was good for Globalstar, though some people, including Bernie, claimed it wasn't; Bernie said it was like a nail in the heart [of Globalstar]. It is much better to have no competitors - that's why the antitrust dramas are played out and people get hysterical about monopolies. Having been a salesman, I can tell you it is a LOT easier selling at a very high profit if there are no competitors. <But now, today, you have a unique franchise still, operating very well, the prospects of all debt being eliminated, new players, new cash, ATC potential and those telematics, aviation and maritime, government and military applications, not to mention thin but geographically broad potential individual consumer use. I predict no other commercial MSS system will ever be built unless Globalstar is a success. > I agree with that too. I can be one of those in the "new cash" category rather than "creditor converted to equity". My guess is that I'll do better as a new-cash member than old-creditor. Mqurice

To: kitterykid who wrote (24854)	4/1/2002 3:53:32 PM
From: crm114	Read Replies (1) \| Respond to of 29986

kk I predict no other commercial MSS system will ever be built unless Globalstar is a success. kk, the case is even stronger than you have stated. Right now it appears that McCaw is building out a part of his constellation. I don't think he has the intent (or the capital) to build the whole 240-sat program. So what is he doing? IMHO he is doing a protection build to protect his ATC claim. I remain long the G bonds, despite my disgust with management's apparent intent to destroy the remaining cash, which will IMHO lead to dilution that could have been avoided. CRM