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

To: Jon Koplik who wrote (26110)	10/3/2006 12:54:37 AM
From: Maurice Winn	Read Replies (1) \| Respond to of 29986

Email received: <(MORE TO FOLLOW) Dow Jones Newswires 10-02-06 1720ET Copyright (c) 2006 Dow Jones & Company, Inc.- - 05 20 PM EDT 10-02-06 WASHINGTON (Dow Jones)--Globalstar Inc. on Monday set the terms its pending initial public offering at 6.5 million common shares with an estimated price range between $16 and $18 a share. The Milpitas, Calif.-based satellite-telephone provider originally filed a $100-million IPO in July, but it didn't provide the terms at the time. According to an amended prospectus filed Monday with the Securities and Exchange Commission, the company has granted the underwriters an option to purchase up to 975,000 additional shares to cover overallotments. Wachovia Securities, JPMorgan and Jefferies & Co. are listed as underwriters for the offering. The company said it intends to use the net proceeds from this offering to fund the procurement and launch of its second-generation satellite constellation and related upgrades to gateways and other ground facilities. Globalstar estimates that the total cost to procure and launch these satellites and upgrade these facilities will be about $1 billion to $1.2 billion. It said it intends to fund the balance of those costs principally from loans and cash generated from operation. The company said it has applied to list its stock on the Nasdaq Global Market under the symbol GSAT. -By Denise Jia, Dow Jones Newswires; 202-862-1359; denise.jia@dowjones.com > Note that only $1.2 billion to replace the constellation [or maybe that's for a Walker 40, which isn't strictly a complete replacement, being only 40 satellites instead of 48 with 4 spares in orbit]. So, the fixed cost per minute will be half that of the previous constellation, and the gateways are already there, so they cost next to nothing [though maybe there'll be some upgrading]. So, if they wanted to, Globalstar Incorporated could sell minutes for 10c a minute easily, without requiring people to buy huge numbers of them, and still make heaps of money. Of course, what they should do, is fill the constellation and sell millions of phones, by offering really really cheap minutes, if not free. Then balance supply and demand by raising minute prices as the system gets full. The Motorola 1993 'variable price' patent will have expired by then [and might not be valid anyway, as an auction for short supplies has always been the way of allocating them]. The new Globalstar phones should be out soon too. Single mode. Smaller, better. Verdad is going to die before Globalstar does. Mqurice