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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Valueman who wrote (8572)	2/16/1998 5:16:00 PM
From: kech	Read Replies (1) \| Respond to of 152472

Valueman - A careful (I think) reading of both your post and Gregg's post may help to resolve the conundrum. I think that you and Gregg are essentially agreeing about the ownership structure. Both of you are saying that GSTRF does not get the management fee but that Globalstar LP and or Loral get the management fee. However, what Gregg is saying is that the GSTRF's value is based on 30% of Globalstar LP which DOES get the management fee. Thus he is saying that GSTRF's value includes some value based on the management fee even though it doesn't receive it directly. Hope this doesn't confuse things even more! Gregg says the following: I used $180mm, not $120mm. Here's why. GSTRF, as the publicly-traded vehicle, owns ~30% of the Globalstar LP and, as managing general partner, is entitled to a participation in the LP's revenue stream (2.5% of revenue up to $500mm and 3.5% above). The market is currently valuing the ownership interest and the management fees at $1.85bb. You are saying: I believe you are incorrect. GSTRF is not the recipient of the management fee. That fee is split between Loral and Qualcomm as the managing general partners. Thus, GSTRF represents only the ownership interest and not a management fee revenue stream.