GSAT
Globalstar Inc.
TMT, Event Driven/Special Sit
03/03/2014
Presented
| Date | 02/28/2014 |
| Price | $2.24 |
| Market Cap | $1.76B |
| Ent Value | $2.43B |
| P/E Ratio | N/A |
| Book Value | $0.08 |
| Div Yield | N/A |
| Shares O/S | 785.00M |
| Ave Daily Vol | 3,420,000 |
| Short Int | N/A |
Current
| Price | $1.19 |
| Market Cap | $2.26B |
| Globalstar, Inc. provides mobile voice and data communications services through satellite worldwide. The company offers duplex two-way voice and data products, including mobile voice and data satellite communications services and equipment for remote business continuity, recreational, emergency response, and other applications; fixed voice and data satellite communications services in rural villages, ships, industrial and commercial sites, and residential sites; and satellite data modem services comprising asynchronous and packet data services. Its two-way transmission products also include Qualcomm GSP-1720 satellite voice and data modem, which enables value added resellers to integrate the satellite modem processing with the specific application. In addition, the company provides SPOT products, such as SPOT satellite GPS messenger for personal tracking, emergency location, and messaging solutions; and SPOT Connect, a one-way messaging device that sends customized messages through the company’s satellite network from smartphone or other smart devices, such as tablets. Further, it offers simplex one-way transmission products comprising STX-2 satellite transmitter, which enables an integrator’s product designs to access the company’s simplex network. Furthermore, the company provides engineering services, such as hardware and software designs to develop specific applications; and installation of gateways and antennas. It primarily serves government; public safety and disaster relief; recreation and personal; telecommunications; oil and gas; maritime and fishing; natural resources; construction; utilities; and transportation markets. Globalstar, Inc. distributes its products directly, as well as through independent agents, dealers and resellers, independent gateway operators, and its sales force and e-commerce Website. As of December 31, 2012, it served approximately 562,000 subscribers. The company was founded in 2003 and is headquartered in Covington, Louisiana. |
Highlights
Despite 80% downside risk in shares of Globalstar (GSAT), the presenter is long and believes the probability of a negative catalyst sinking the ship is low. The upside case hinges on the FCC ruling favorably on the repurposing of GSAT’s unique spectrum, and the potential upside for shareholders willing to accept the risks is “huge.” The stock was trading at just 50-70 cents up until this past September when Amazon reportedly tested its network, and then the FCC agreed to review the company’s request to repurpose its spectrum; at ~$2.25 per share, GSAT is trading near five year highs.
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