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

To: Andmoreagain who wrote (4084)	4/23/1999 7:52:00 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 29987

Justabitmore, at 10c per minute wholesale, with 12bn minutes, Globalstar LP would get $1.2bn. With operating costs using the $0.2bn, Globalstar LP would get $1bn revenue. Pay a bit of interest and divvy the rest up among the shareholders. GSTRF gets a third of it, so 80 million shares each get about $800m/3 = $270m/80 = $3. Shares cost $20 at the moment, so even with a 3 year wait for the system to fill, that's not a bad return on investment. When the system is 30% full, Globalstar could start raising the price to slow demand growth and optimize profitability. At 70% full, start launching Constellation2. My investment is based on the idea that Globalstar will fail to sell many minutes at 55c per minute wholesale and will reduce prices to get demand moving. Maurice PS: At least your name and the Laphroaig malt have some vowels. Imagine dealing with Welsh.