Globalstar, Inc. (GSAT) shares retreat after big leap: Commentary by B. Riley Securities


Globalstar, Inc. (NYSEAMERICAN: GSAT) shares retreat somewhat after a large jump in yesterday’s trading session. The stock is down 6% to $ 2.52. The stock has jumped 78% over the past week.

Analyst Mike Crawford commented: “Stock listed on the purchase of Globalstar, Inc. (GSAT, $ 3.25 PT) climbed 30% on 9/9, compared to a decline of 1.1% in the. ^ RUT, with an even larger volume (290 million shares) after reports that some were connecting a recent experimental license granted by the FCC to Apple as a potential customer.

Globalstar has been granted an experimental mobile radio station license for its S-band frequency, which is used as a downlink in its LEO constellation, but any connection to Apple remains speculation and also does not explain how a transmission system d Emergency for iPhone would work, if that is indeed the designated use case, as opposed to, say, GSAT’s n53 band terrestrial spectrum access for private network deployment.

Then again, GSAT’s mystery project could be quite another thing, a possibility that gains credibility when you consider that the company has recorded the advance payments received as long-term deferred income, over a year. On 2/2, GSAT disclosed a third prepayment from this “potential” customer for a “potential service using some of (GSAT’s) assets and capacity”, this time for an additional $ 37.5 million. , bringing the project’s total cash flow since early June to $ 90 million, with GSAT using the proceeds to pay off its first lien debt. Indeed, this latest windfall of $ 37.5 million comes on top of our published model, pushing net debt below $ 220 million, for a company that we believe has billions of dollars in spectrum.

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