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Technology Stocks : IRID - Iridium World Communications IPO Announced! -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Vayda who wrote (1362)	2/22/1999 12:24:00 PM
From: Joe Brown	Read Replies (2) \| Respond to of 2693

IRIDIUM UPDATE: Merrill this morning reiterated an "intermediate term accumulate" and "long term buy" on Iridium. Motorola Cellular has cut the price of the phone to $2795 (promotional price of last November) from the retail price of $3395. For the lower price, however, you no longer get the extra-capacity lithium ion battery and desktop charger. To stimulate corporate demand, Motorola is offering 5 loaner phones for a 30 day trial. If the company decides to buy, they get them at the $2795 price, but they get 5 more free. In other words, companies who buy could get them for about $1400 apiece. Maurice...this should make you happy (p-----g, and all...). Personally - and this is my OPINION ONLY - I do not think this goes far enough. Demand is still not there. Short sellers are probably covering this morning, since most of the bad news is getting well circulated. If the company cannot go the extra mile in the next couple of weeks, the rally could turn out to be short-lived. I hope Iridium pulls the rabbit out of the hat, personally...

To: Jeff Vayda who wrote (1362)	2/23/1999 5:09:00 PM
From: Lu_Xun	Read Replies (1) \| Respond to of 2693

Jeff: I completely agree with your post. I finally cashed in my IRIDF chips at about $24 per share yesterday because I finally came to the conclusion that the subscriber base was growing so slowly the company was likely to have significant trouble getting on its legs, which could only mean yet more bad news for the stock price. Still, I hold out the hope there may be a future for the company that may make it an attractive investment -- but only once the debt burden is somehow solved, presumably by rescheduling the debt (preceded by a declining stock price as the market worries about bankruptcy) or a debt for equity swap with the creditors (meaning dilution of the existing shareholders' equity). Either implies a lower stock price. I'm going to keep my eyes on this company because there may come a point where the stock price sinks REAL low -- and then it might just be a very good buy indeed. But for the moment, I'm outta here. Lu Xun