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To: JMD who wrote (22441)	2/3/1999 8:27:00 PM
From: Caxton Rhodes	Respond to of 152472

RESEARCH ALERT-J.P.Morgan starts communication cos NEW YORK, Feb 3 (Reuters) - J.P. Morgan said Wednesday it started Iridium World Communications Ltd. with a market perform rating, Globalstar Telecommunications Ltd. with a buy rating, and ICO Global Communications with a long-term buy rating. -- Iridium expects to add 500,000 to 600,000 subscribers to its network in 1999. -- J.P. Morgan expects Iridium to remain in its current valuation range if it is successful in adding 250,000 subscribers to its network during 1999. -- with Globalstar and ICO entering the wireless carrier market place in 1999 and 2000, competition will increase and may stifle Iridium's profits. -- Target price for Iridium by the end of 1999 is $37 and $47 by year end 2000. -- J.P. Morgan initiated coverage of ICO with a $19 yearend target price. -- According to J.P. Morgan, ICO's market penetration rate translates at year end 1999 into a worth of about $4.5 billion or $19 per share based on the discounted cash flow analysis. -- ICO is the only mobile satellite services company to own its ground network. This will enable it to maintain end-to-end control over the majority of its call traffic. -- J.P. Morgan initiated coverage of Globalstar with a $30 target price, as the stock has significant room for upside appreciation given the company's potential revenue and cash flow generation power shortly after the start of services. -- J.P. Morgan believes the company's satellite launch in the second half of February 1999 will renew investors' confidence in the deployment schedule and drive the stockhigher. -- Globalstar's cost structure pro rated over the lifetime of its network under similar capacity scenarios is lower than that of its peer group. -- Iridium shares were off 1/16 at 33-1/8, Globalstar shares were up 7/16 at 19-7/16 and ICO Global shares were up1/8 at 14-3/8. ((--Wall Street Desk (212) 859 1730))