Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: David Alders who wrote (5066)	6/5/1999 3:12:00 PM
From: RMiethe	Read Replies (2) \| Respond to of 29987

When Jack Grubman gets employment with a non-Wall Street firm, and actually has to meet a payroll, I'll pay attention to what he says about telecommunications companies. Seems to me an analyst named Robert Kaimowitz, first at Unterberg, who went to and is now at ING, was "aggressively negative" (to use Grubamn's language) on Iridium two years ago. He was so unconventional (back then anyway) as to state that Iridium would never make money. Would not make a dime. At the time Mr. Watts was telling us, along with Mr. O'Neill of Soundview, that Iridium would be a goldmine (I paraphrase, of course). Dustbin seems more like it. I thought at the time that Kaimowitz was overstating his case. Thought it was sour grapes rhetoric, actually. He turned out to be right-- dead right. Kaimowitz has a buy rating on Globalstar. No, this analyst at ING never had to meet a payroll either. However, I don't recall Grubman ever saying Iridium would never make money. In fact, Grubman never did. And I would love the names of the ten people he cites who says the Iridium phones didn't work. Quite frankly, I think old Jack is "fibbin'" on this one. He's made some bad calls costing investors money (myself among them), his Institutional Investor ranking aside.

To: David Alders who wrote (5066)	6/6/1999 1:56:00 AM
From: Maurice Winn	Read Replies (3) \| Respond to of 29987

David, I know nothing about Jack Grubman but wonder why his unsubstantiated comment gets any credence. His point is that Globalstar lacks an acceptable business plan. He says it is only a little different from Iridium's. So, on that tiny amount of information we can conclude that we can ignore him. Iridium's business plan is so different from Globalstar's that the only thing they have in common is that they are satellite cellphones. -Iridium's breakeven price per minute is over $1. Globalstar < 10c. -Iridium's phone is big. Globalstar's is much smaller. -Iridium's is TDMA and not that good. Globalstar's is CDMA and great. -Iridium is worldwide [apart from some places]. Globalstar is regionalized to start, though most of the world will be covered. We need only consider the facts and reasoning he gives, which is nothing much so far. Meanwhile, thanks to the failed ICO rights issue, it seems we'll be able to look forwards to a deferred ICO launch until the mess clears up a bit. Iridium is being 'class-actioned' for mismanagement [saying things were fine when the management supposedly knew they weren't]. Given the problems which ICO faces and the lack of confidence in the system as shown by the rights issue, it would be foolhardy of the company to go ahead and fire shareholder's money into space without the mandate of financial backing. If I was an ICO shareholder, I'd be saying "Hang on a minute. Let's just put things on hold for a few months until we see how Globalstar goes and get our financial and technical house totally in order so we don't do an Iridium." Maybe Globalstar could use the rockets which ICO won't be needing. That would get a lot more satellites into space in a short time including a few dozen spares, which could could be used as part of the network thanks to CDMA flexibility. That would complete Globalstar's network quickly and boost it's capacity early and give ICO an early indication of whether they should order a bunch more rockets. Okay, maybe those ICO rockets are the wrong shape or designed for huge satellites rather than a few little ones like Globalstar's - it's just a suggestion. Maurice