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from the keyboard of geoff goodfellow

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GSAT update in brief [Mar. 26th, 2010|02:18 pm]
from the keyboard of geoff goodfellow
just on the Export Credit Agency COFACE financing alone (finalized last july) GSAT is worth ~$5/share.

if you add in the Book/Fair Value of the all the assets, i.e. the value of the 30 Mhz WORLD WIDE LICENSED (in 160 countries) HARMONIZED spectrum along with the (US/domestic only at this time) ATC licensing/authorization/leasing (which IRDM dose not have), the gateways owned around the world, the remnant satellite constellation, the technological developments such as the SPOT SATELLITE MESSENGER ( http://findmespot.com & http://www.spotadventures.com ), etc, money raised, loans arranged and guaranteed, SOCC/GOCC, supply agreements arranged, market testing so far, existing customer base (largest in the world and growing), employment agreements, and all the rest GSAT should be trading in the $20+ range...

while it's certainly true that most of GSAT's network has little or no cash flow from operations due to the majority of their satellites only being able to operate in simplex mode presently -- until their fully-financed second generation constellation is launched starting this summer -- they have made a Good Go of/for It with just the SPOT and Simplex capability and are getting pretty close to having the enterprise be EBITDA positive.

but this illustrious industry segment is just soooooooooo out of favor at the moment and still has a HUGE over hang (I call it malaria) from its and iridium's and ICO's previous (chapter 11'd) incarnations, it's why it trades at what it dose and is a significant steal at this price -- if you can just let the shares sit for the next 12 to 18 to 24 as GSAT's FULLY FINANCED (unlike IRDM) second generation constellation gets launched and becomes operational and let Mr. Market take recognition you're gonna have a multi-multi bagger on hand.

for more details and for a fair read on GSAT check out the equity analysis at http://devilcapital.com/investments/GSAT as well at the latest investor presentation under [Investor Relations] at http://www.globalstar.com/en/ -- oh, and don't miss out on the recent share transactions at http://www.mffais.com/gsat and lastly, for a technical analysis, some charts with support/resistance levels, check out: http://www.stockta.com/cgi-bin/analysis.pl?symb=GSAT&num1=1&cobrand=&mode=stock

other bboards and forums to read:
http://siliconinvestor.advfn.com/subject.aspx?subjectid=17382
http://siliconinvestor.advfn.com/subject.aspx?subjectid=52022
http://messages.finance.yahoo.com/mb/GSAT
http://tmfassociates.com/blog/

see also:
the article with CEO's from the five largest MSS companies debating “New Solutions and New Opportunities: The MSS CEOs Speak Out” from the MSUA-7 panel, at http://www.satellitetoday.com/eletters/satellite2010_daily/fromtheshowfloor/MSS-Leaders-Assess-Market-Hail-FCC-Broadband-Plan_33664.html

DISCLOSURE: long GSAT
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