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

To: Valueman who wrote (5031)	6/4/1999 3:33:00 AM
From: Maurice Winn	Read Replies (2) \| Respond to of 29987

ICO Out?!! Surely not? It seems that there will have to be a lot more dilution than ICO planned. That means the ICO share price will take another thump down as they have to sell more stock but at a cheaper price. With luck, they'll just put the whole thing on ice for a year or two while they see how Globalstar goes. This town ain't big enough for both of us! [GSTRF/ICO] Globalstar will get the $600m easily. Loral will put some in and since AirTouch says it can sell heaps of the minutes AirTouch might even grab some more stock in what looks to be the champion satellite service for mobiles. I see no problem for Globalstar in raising the money. The public shareholders would like a rights issue rather than suffer dilution and see AirTouch getting away with cheap stock. [Well, I would anyway]. Wall Street will think, "Wow! ICO bites the dust. This satellite stuff is really dodgy". So they'll sell a few Globalstar shares. Then they'll think, "Hang on a minute, that means Globalstar is the only game in town. Iridium has only 1 bn minutes, so they are no real problem even if they give them away since Globalstar has 12 bn to sell. ICO is out! Nobody will want a Hughes Voice Delay GEO system handset. That means Globalstar will get nearly all the business. Gee, they'll be able to sell their minutes because they are high quality, with good handsets which work really well and they can sell the minutes as cheap as they need to to sell the whole lot since their cost per minute is only about 8c per minute." Then they'll try to buy the stock back again. Especially when Globalstar gets all the money needed and the next couple of launches go right. It seems that ICO shareholders were reluctant to throw good money after bad. But what was the source - I guess a news item will hit the stands tomorrow if true? Rah! Rah! Rah! Globalstar... Mqurice