Globalstar, Inc. (OTCMKTS:GSAT) Maintains Strong Run
Thursday was another significant green day for Globalstar, Inc. (OTCMKTS:GSAT) shareholders. The company’s stock managed a double digit green close, adding 12 cents to its price and stopping at $1.32 by the bell.
The ticker had its sixth bullish session in a row. The first of those helped GSAT land at exactly $1.00 per share and the next five added a further $0.32 to the price, on share volume that is increasing every day. Yesterday GSAT moved 9.6 million shares.
The company’s run was started by a couple of factors, including a proposed rulemaking on part of GSAT has been forwarded for review and consideration by the full Federal Communications Commission, as well as a rumor linking GSAT and e-commerce retail giant Amazon. Putting Globalstar’s name in a close proximity to Amazon, with leaks of information that Amazon is testing a new WiFi network for Amazon mobile device users and is using a spectrum band controller by GSAT, sent the price of the stock soaring. Two days ago GSAT also received bullish coverage in an online investment magazine, which likely helped the ticker further.
So far GSAT have been doing an extraordinarily good job of keeping the heat up. The price did pull back briefly around Sep 20, as the ticker had just pushed over $1.00 per share. However, recovery was relatively swift and timely. While the green run is looking good so far, traders should keep in mind that the ticker put on 32% in a few sessions and this may lead to a more significant correction or shareholders cashing out a bulk of their position at the new highs.
Another OTC stock that ran for a good while and even made it past $2.00 per share is Liberator Medical Holdings, Inc. (OTCBB:LBMH). Having reached nearly $2.40 per share, LBMH recently retraced down below $2.00 and rebounded to $2.15 once more. Despite the strong points of both LBMH and GSAT, traders should keep in mind that OTC stocks tend to be volatile and should take care when making decisions, especially if those involve chasing stocks.
