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

To: Larry L who wrote (257)	1/15/1998 6:23:00 PM
From: Maurice Winn	Respond to of 29986

Good snucking [you got more at $39], now $46, so you might have scored a bullseye on a low. Meanwhile, reported in Loral stream, Readware said: "It probably would have been easier for Loral to build the whole G* system first, and then offer the common shares to the public, thereby avoiding all this volatility in the common shares of G. After all, they really did not need the $200 million the original G common stock offering brought them. Loral could have gotten that money from Lockheed in a blink of an eye. Loral could have constructed the system, launched the LEOs, and then offered the stock at a much higher price to the public. Almost $3 billion of a satellite constellation (with gateways) at that time would be in existence, and for sure the price would not have been $20/share. 10 million shares for a $3 billion system-- I think that is $300/share, give or take." That is not right. They did need the $200 million. They also sold it to the public at $20 per share compared with their funding from non-founding partners of about $10 per share equivalent = twice the price. Hardly giving away the farm. The share price then dropped to $12 at which time your humble servant decided it was a good investment and bought. They also benefit from public listing. It was all about gathering wide support from partners who would contribute customer support, technology support, capital support, share trading flexibility. Leaving off the public subscription, which was sold at a high price, would have weakened their case. But that's all history. First, we have a technological test then straight into a market test. Maurice