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

To: Beefeater who wrote (2006)	9/11/1998 8:47:00 AM
From: Jeff Vayda	Read Replies (1) \| Respond to of 29987

Beefeater: No real surprise on Lehman Brothers, they have been in the G* camp for some time. No real surprise in the downgrades, just knee jerk reactions from people only marginally involved and knowledgeable. I agree with your tax selling impact on the stock of G* and Loral through the fall. I wish I would have had the ability to get some losses last year - this year I dont need them. I will be a buyer of G* and Loral in the future, I can reduce my average costs for some time. I have reviewed the posted launch schedule and as a 'rocket scientist' I would have to say that the 'green light' schedule as presented is quite optimistic. There are future delays here make no doubt about it. In planning for positive revenues - add a quarter to Bernies schedule as a best case. As for additional money needed to get to there, 400 mill has been thrown around, add another 200 mill to get to the best case. Expect the worst and then when it happens you are not surprised but can take advantage of everyone elses surprise. I mentioned that I thought Bernie would have a good contingency plan. I am satisfied with his plan as stated. He (they) correctly planned for a failure with the initial procurement of 16 extra sats. They correctly lined up enough launch slots so as not to be left high and dry in the event of a failure. They correctly went with a chancy launcher in order to get the system up faster. They correctly lined up less chancy launchers as back ups. People can complain about the choice of Zenit. That is hindsight. The fact is no rocket is perfect. You are only as good as your last launch and the Zenit was good for two this summer. G* has had a plan in place for years and it shows. The plan has been well thought out by people who understand the business and the risks. That is one of the reasons I am a G* and Loral investor - the team knows what it is doing. You cant engineer out all the risks but you can have contingencies all along the way. IMO they have done a good job so far. After the dust settles a little, financing will be lined up in house and that will make the markets happy. The players in G* need the system and believe in the system. A new major player will be announced and the street will like that. Reports of gateway build out will continue and the phones will not be lagging demand. The Q will be battling through the political morass and things will be looking lively for CDMA. First quarter you will get some launches and then, you will see additional sats procured, 4 spares is not Bernies style. Plans have been made already to keep the production line open for another 4 to 8 sats. This needs to be announced before the next launch failure if it is to ease the streets jitters. All in all, in the grand scheme of things, this is a slide to the right. Start date slides, but maybe not profitability. G* subscriber projections were so conservative that I have no trouble believing that the slide to the right only allows more gateways and phones and demand to be established by the time the system is up and supporting. IMO, 6 months to a year is not too long to wait for a stock to go up 2X, 3X or 4X and at these levels that seems to be a no brainer. Two years from now, you will be thanking yourself for buying such a thoughtful Christmas present. Jeff Vayda