>Gorilla game time.....
As you noted, Iridium has serious problems. Despite its recent price cuts, Iridium's service offerings continue to be impractical. Even with the new cheaper (i.e., *only* US$1,000 vs. the current US$5,000) phones that Motorola and others are set to provide, Iridium's service only makes sense for people who frequent places without traditional cellular service. Unfortunately, very few people in such remote areas have need of such a phone or have the resources to afford one.
The fundamentals are horrible. Additionally, insiders aren't buying any stock nor have they filed to buy any stock. 25% of Iridium's float is sold short, even at this cellar-level price. Iridium's bonds sell for approximately US$0.20 on the dollar.
Iridium's only asset is it already has a satellite network in orbit. Unfortunately, that isn't much of an asset at this time.
Notwithstanding the discussion above, if you've got some risk capital (i.e., something you were considering investing in some hollow net stock), I'd agree that the downside at this point is probably less than the potential upside. Iridium might be a good play.
The above does not constitute a recommendation to buy or sell a security. Additionally, the above comments are in my capacity as an individual investor and speculator not as a representative of Ernst & Young LLP.