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

To: Jim Parkinson who wrote (3713)	4/3/1999 5:53:00 PM
From: Goodboy	Read Replies (1) \| Respond to of 29987

I would think that Globalstar would not break the post Zenit lows, but I would think $8 to $10 would be a floor. Personaly, I like the media buzz that a market for sat phones doesn't exist or isn't large. The more near term pain (if your long) will turn into long term gain (if your waiting to buy in) because of this misperception. Forgetting the corporate, military and govermental agency uses in the field for satellite moblie phones, there is likely a very large market for wealthier individuals (incomes in excess of $150,000) who travel often or find continuous and annoying dead spot even in their domestic home service areas. With a slick antenna pop up and smaller handset design than Iridium coupled with a $700 price tag, this phone is affordable to the same group of people that rushed out to pay north of $500 when Motorola's super small Startac first hit the stores. My bet is that the Gobalstar system will be attractive to the Iridium target market because of price and design. The truth that many here have posted is that Globalstar is actually targeting unserved areas and countries. The fact that they will likely steal the supposed market that Iridium had targeted will be a bonus to the successful launch and sub growth over the first year. The last point I would make is this. Loral doesn't have a conflict of interest like Motorola. They are the majority equity holder and they have the capital and the incentive to get Globalstar into commercial operation. This includes an eventual successor system or next generation. I would not feel very confident that the Iridium system will even operate it's full average life potential of 5 years. Hell, they won't generate enough earnings to pay the Motrola service agreement past 2001. Iridium is dead. I agree with Maurice, Ico should fold now. Globalstar's capacity should be able to handle the current demand from individual subs, corporations, goverments and countries lacking a telecommunications infrastructure. I just don't think you buy the stock yet. I think the Iridium disaster coupled with the clueless media babbling that the market isn't there will drop this baby to the $10 level or lower just before the system goes live. I will load up during the summer and I beleive the Globalstar roll out will be the opposite of Iridium and cause a massive move higher in the stock (like buying TCI inthe begining of 1997 at $12 just before everyone figured out the cable pipe was valuable, now the stock is in the 60's). The Irdium crash may create financing difficulties for other players and concept systems. As for Globalstar, I am confident that Loral has the cash to get them through launch and into 2000. The problem for Loral shareholders is that Loral has ambitious plans of its own with its current systems (Skynet, Orion, etc) and with its planned systems. If they use their capital for Globalstar, they may fall behind the competition in other satellite business segments. This fear could weigh on the stock until the 3rd quarter. I think it is realistic to believe that Globalstar could be in the $50 to $80 range sometime in the second half of 2000.