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

To: Maurice Winn who wrote (4066)	4/22/1999 4:38:00 PM
From: djane	Read Replies (3) \| Respond to of 29987

Car manufacturers [many of them] will build Globalstar into cars, initially as an option, but after a few years, who would buy a car without Globalstar in it? Can you imagine the pop in the stock price if a few US, Japanese and European car manufacturers announce such a product?

To: Maurice Winn who wrote (4066)	4/22/1999 8:06:00 PM
From: A.J. Mullen	Read Replies (3) \| Respond to of 29987

The problem for Globalstar if Iridium stumbles is that while Iridium may not be able to compete and make a profit, their marginal cost could be below the price at which Globalstar can make a profit. If so, Iridium may have to face the fact that it cannot recover its investment at any price rate. They won't just shut shop and leave the market. No, they'll ask themselves "can we get some of our cash back?" To do that they'll look at the cost of operating the system and try to maximise their net revenue. In that case Globalstar would be competing with the system that might as well have been provided for free! I wonder how much it costs to run ground stations etc? could they do it for less than 15c a minute? Be careful what you wish for. Or, sometimes it is good that the universe is indifferent.

To: Maurice Winn who wrote (4066)	4/23/1999 3:41:00 PM
From: John Stichnoth	Read Replies (1) \| Respond to of 29987

Maurice--Good mornin'. You've mentioned a couple of times the desire to fill up the available space at very low prices. I agree with you that empty capacity is wasted capacity. I think however, you can't take this too far. Can you imagine the uproar that would arise if an SP sold a bunch of contracts--and a bunch of people had plunked down $1,000 per phone--at 25 cents per minute, and then after six months the SP suddenly raised the rate to $1.00 per minute? Yikes! You'd really hear some screaming.