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

To: Rocket Scientist who wrote (1360)	6/18/1998 1:21:00 PM
From: Dragonfly	Read Replies (1) \| Respond to of 29987

Ok, but operations with half the birds and half the gateways is not what I would call "meeting your milestones." As a fan of G* we can appreciate this flexibility, but the market will discount the price if it comes to that. And if one of the Zenits goes boom, Loral is going to have a big scramble to find launch capacity. In fact, if this happened and they still launched service on time, it would be a very telling indication of the abilities of Loral management. I'd really like to see their contingency plans. At any rate, a partial start of service will impact capacity, and potentially subscriber growth rates, and ultimately return on investment. So, I think it could affect the fundamental economics of Globalstar. Dragonfly

To: Rocket Scientist who wrote (1360)	6/18/1998 1:32:00 PM
From: Jeff Vayda	Respond to of 29987

RS: True enough, but the next 36 sats are queued on a Zenit. The nature of the launch business today does not give much flexibility to get a new ride quick. Delta (being the most likely alternate launcher due to the first two launches) was just crowing about getting the Thor III off in 13 months from contract signing. Slipping that far would drop G* into ICO service time frame and would be very bad for G* IMO. In this business you are only as good as your last launch. Evidence the Ariane V troubles. They were to have a paying customer on their second attempt. That customer had the misfortune of having their party rained on. When their primary satellite was taken out they said they would not like to risk their company on the second attempt of the V. G* might react the same way. We have all our remaining eggs in one basket and it doesnt make me feel that good. I dont have any real problem with Zenit, only the short sighted people who will crush my beloved G* in the event of a Zenit misstep. Time will tell. Buy on panic. Jeff Vayda