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: E Haiken who wrote (177)	12/18/1997 3:49:00 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 29986

E Haiken, the pricing decisions are made by the buyer and the seller together. A bit like making babies. You don't get a baby without a bit of mating. Sure, the pricing decisions aren't made simply by the people on this board. But we are shareholders and shareholders own and run the company. So in fact we do make the decisions as far as the seller is concerned. But the buyer is quite a necessary part of a transaction. They also have a part in whether a baby is made. So Iridium, Globalstar and others preen and prance and the buyer of the service considers the suitors. Globalstar can set a high price, but if the buyer isn't buying at that price, they will be all dressed up in a $4bn suit with nowhere to go. Since they have spent the money already, they will have to cut the price sufficient to attract custom. Maximizing revenue quickly is the name of the game with this system. No time to muck about with billions rusting in the sky. In 7 years it is space junk. You trust that people with all the facts will have good judgement. That's fine, but the job of investors is to keep an eye on this good judgement. So far, there is no evidence that they understand the facts or have good judgement in regard to pricing. My objections and points are clear. You have answered none. Therefore your approach is simple trust. Good luck with your investments. You will need it. How do they propose to avoid "NO SERVICE AVAILABLE" signals at busy times? How do they propose to avoid unused capacity? When will the system be running at capacity? These are questions which have not been answered adequately. Other than the idea that they will sign on far fewer subscribers than the system can carry and take till about 2005 to fill the system. Simply saying, "Gee, I dunno, but I bet they have a good plan" is fine, but it might be nearing time to sell if they are full of uncritical shareholders. Mqurice