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

To: Andmoreagain who wrote (4083)	4/23/1999 1:05:00 AM
From: Valueman	Respond to of 29987

If Iridium is drowning, why not grab the nearest life-vest - that is, lower the cost of using the system to vanishingly low levels in a restructuring scheme and make it too attractive to NOT use. What kind of restructuring scheme allows a bankrupt company to bleed even more cash like that? They still have expenses, they still need to replenish their sats(some are two years old now), pay the help, etc. Restructurings are not magic. Motorola and Kyocera wouldn't suddenly give away the phones or the dizzying array of expensive cellular cassettes. Bond holders still want their money, as do the banks. Are they going to sell minutes for 50 cents and phones for $200? At full capacity, that gets them $750 million. What then? They are still bankrupt.

To: Andmoreagain who wrote (4083)	4/23/1999 9:35:00 AM
From: brian h	Read Replies (1) \| Respond to of 29987

Andmoreagain, One of the thesis that I did my research before was that G* will benefit the most if one of G's competitors would be out of business (such as I) or G's competitors can not get started (if that is the case for ICO). Now You just looked at the darkest side of it if I* goes south. I took that as positive though as you said that I* may go a lower price on phones and minute charges. The question remains what are the customers basis. I* did not successfully convince customers to get involved in I* does not mean that G* will let its business plan go south also. The demand is still huge there. Which company has the means and plan to take advantage of it is the key here? I bet on G*. It is quite possible it becomes a semi-monopoly compared with other GEO or MEO sat. phone operators. Are you in or not? Or you are here to provoke some thoughts only? Or are you short? Best, Brian H.

To: Andmoreagain who wrote (4083)	4/23/1999 6:12:00 PM
From: Dragonfly	Respond to of 29987

I think Iridium would have a very difficult time doing this as their partners are counting on a cut of the minutes revenue stream. And their problems right now, seem to not be lack of demand or pricing, but lack of handsets to sell and handset quality. This will change, hopefully soon. While Globalstar wants to beat Iridium, it still has some funds to raise and a bad market makes it more expensive. A successful Iridium would not undermine Globalstar's ability to sell minutes-- in fact they don't even compete in the first generation if the numbers for demand are to be believed (and I believe they are underestimating demand) Its only in the 2nd and 3rd generations where the two would compete. Itidiums troubles are nothing for us to cheer about. Dragonfly