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

To: CMon who wrote (5037)	6/4/1999 2:32:00 PM
From: Valueman	Read Replies (1) \| Respond to of 29987

Ok--maybe "bites the dust" was a little strong. How about "circling the drain"? They need $1.7 billion. Their very own partners would not even cough up the minimum to stay alive. I am told that they have a month of cash left. Hughes won't build the sats for free. They won't launch for free. What alternative means of finance do they have? Bonds? At 30%? Not a chance. Banks? Dicey. Vendor financing? From Hughes? They are trying to raise $2 billion or so themselves to pay for their (bad) purchases of USSB and Primestar. Can they afford another billion for ICO? Not a chance. So, what can they do? They wanted to raise a billion, but they get interest for $400 million. Where is the other $1.3 billion going to come from? A big delay at best, although I never underestimate the craftiness of Wall Street bankers in raising money when they themselves stand to make a big score.