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

To: Michael Allard who wrote (1377)	6/20/1998 11:53:00 AM
From: Jim Parkinson	Read Replies (1) \| Respond to of 29987

The June issue of Individual Investor has sat coms on the cover and and pick G* CD Radio, and Vsat as top picks. There is also a projile of Bernie. They say "All the networks have their strengths, but Globalstar's is the most pragmatic, and has the most profit potential." The author obviously read the Barron's article because their are some very similar statements. It is much more upbeat than Barron's. They have a web site at www.iionline.com.

To: Michael Allard who wrote (1377)	6/22/1998 1:51:00 PM
From: dougjn	Respond to of 29987

You are absolutely right. The moment I read the passage you quoted, I had exactly the same reaction. I recalled the 85% profit margin as well. And guess what? You don't have to have Readware's knowledge of the industry to come to the same general conclusion. If you know anything at all about the industry, or even just use your noggin, it is obvious that virtually the entire cost of a satellite system is expended in getting it up, and almost none in running it. Like a bridge. It was a truly dumb passage. And it was also central to the somewhat pessimistic tone on the best of the sat coms, i.e. Loral and Globalstar. Take away that gloomy, price already reflects potential, sentiment and the article actually becomes quite bullish on the leading, lower cost providers. Like our boys. I probably should have said all this myself before, but frankly, just didn't bother. For those who are close to the story it is all quite obvious. I actually read the article as quite bullish. Cause the only thing I worry about is demand at the price. ANd the article was bullish on that. It just speculated that competition would drive the price down in the out years. Which I already agreed with. (Though I think a lot of the really cheap systems either won't happen, will be much delayed, or won't really be competitive, due to vast quality, latency issues, etc.) Doug