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

To: JMD who wrote (2044)	9/13/1998 11:53:00 PM
From: Maurice Winn	Respond to of 29987

SurferM, a bit of unashamed boosterism. Globalstar stock is oversold. What matters is the same old boring thing - future earnings adjusted back to today. Future earnings look very stable - unless you are one who believes the world is so bad or going that way that the estimates for demand are way off beam. The technology surrounding a minute of Globalstar has been going ahead in leaps and bounds. L M Ericsson and Qualcomm about to come up with a 3G deal by the look of it. The stock price is back to 3 years ago. Before cdmaOne was even working. When finance was dodgy. All sorts of stuff was unproven. And time to market was about 4 years away. Now all the necessary hardware has been shown to work a dream [the odd Zenit rocket notwithstanding]. Things are improving constantly. Even allowing for the overall market decline, GSTRF is cheap compared with then. Market Capitalisations: Globalstar 234 million fully diluted shares X 10 = $2.34 billion Iridium 194 million fully diluted shares X 35 = $6.79 billion Think how many minutes Globalstar and Iridium can each sell. And starting when. Which system is showing better handset performance in pre-operation trials? Globalstar is [if you can believe anything these days after the Zenit-Script] showing flawless handset/satellite performance. Iridium is really having trouble. Globalstar will be built and will function well. There is still a launch failure to go [maybe], but scrambled eggs is all part of the business and just another cost. Unpleasant, especially when you've been out celebrating a launch which turned out to be a hoax. But just another cost. With fairly sound statistics surrounding those costs, so they aren't even unknowns. $20 - $30 seems more like it in my opinion. $10 seems to reflect fear and panic rather than expected earnings. The idea that a system with replacement cost of about $2.5bn should be worth $1bn seems odd to me, but that is what $5 would mean. They have got most of the money in the bank to build it. They have an exlusive cdma licence. They have spectrum. They have design nearly complete. They have 8 satellites up. Satellites all built. Mid single digits is not going to happen. Too many people with too much money will grab it before you get your chance. I'm all in favour of panic and will be the first up a tree if a wolf arrives. But I don't see anything wrong. Please point out the problem. Nothing can go wrong. Maurice