Globalstar, Inc. (OTC:GSAT) Launches Satellites, Stock Price into Space
What better way to launch a penny stock than announce an actual launch of satellites. The communication company Globalstar, Inc. (OTC:GSAT) plans to launch five new low-orbit satellites in just a few short days, but the ticker is already ignited, adding double-digit percents to its price in the past few days, doubling its price since January 22. This ticker we have not tracked before showed up on our radar with robust daily growth, demanding further attention. 
The company, offering satellite phone and location services all over the world, shows reasonable strength, although the specialized nature of its services limits its revenue base and makes the company vulnerable to loss accumulation and debt. As of September 30th last year, Globalstar shows the following financial strengths and weaknesses: 
- $1.2 million cash
- $1.4 million current assets
- $762,000 current liabilities
- $41 million net loss
In the past three years, the GSAT ticker has been dropping with several temporary spikes in between, and being relatively cheap, the company allows easy taking of positions and subsequent selling for profit. Although GSAT seems like a stable company and a longer-term bet, the ticker was briefly promoted last November. But the pump did little for volumes, unlike the press releases announcing new satellites which spiked buying volume to 15 times its usual levels.
The GSAT ticker went up on a Bull Report promotion, with a budget of $25,000. The company may have needed a pickup after it went through a rough spot of layoffs in 2011. Yet the single email from The Bull Report and a mention by another pumper, StockEgg.com, may have been an attempt to boost the promoter’s records, rather than a bona fide hunt for investors for an otherwise weak business.
GSAT lost 50% of its value in a slump after the artificially created interest of the promotion, but The Bull Report has a worse record for picks, some of which lose up to 90%. The Titan Iron Ore, Inc. (OTC:TFER) slid down 80% from above a dollar and trades around 20 cents in volumes only a faction from those around the promotion.
While Globalstar shows promise for its $160 million market value as of January 2013, the daily movements may still turn unexpected as relatively small volumes of selling manage to depress the price. With 305 million shares outstanding and daily trades hardly exceeding three million shares, sharp moves are entirely possible so estimate your own acceptable level of risk before committing to a penny stock.
