Globalstar Inc. (OTCMKTS:GSAT) Plods Along
The month of May was a good time for Globalstar, Inc. (OTCBB:GSAT) shareholders. The stock spent virtually the entire month climbing steadily up the charts, excluding a brief hiccup after a jump that proved too sudden. The price has cooled down a little after a further run up in June, but it’s still about 60% up from its early May values.
The first quarter of this year has been mostly good for GSAT. The company announced earlier that it has refinanced its convertible debt and revenue has grown on a year-over-year basis. Before looking into any further details and numbers, it should probably be noted that unlike many other recent shells and other OTC enterprises that are being pummeled by promoters to a state of near-death, GSAT happens to be a business that has never been aggressively promoted through paid email campaigns.
The last financial report of GSAT is the 10-Q for Q1 of this year. As of March the company had the following numbers to show:
- $1.3 million in cash
- $1.3 billion total assets
- $19 million quarterly revenues
- $25 million quarterly net loss
The company released several press announcements in the recent weeks related to their joint work with Ruckus Wireless, Inc. on seeking new Wi-Fi opportunities in the vacant RF spectrum. The project aims to alleviate the so-called Wi-Fi jam caused by exhaustion of available frequencies through the use of TLPS or terrestrial low-power service – a new Wi-Fi delivery avenue.
Stocks that generated heavy dollar volume in Thursday’s session included Loto78, Inc. (OTCBB:LOTED) who dropped 42% to below half a dollar per share. Petrosonic Energy, Inc. (OTCMKTS:PSON) also slumped 13% to a close of $0.72 per share.
Despite GSAT‘s chart success, the company is still working in the shadow of a mountain of outstanding debt – a factor that investors should keep in mind when considering it as an investment opportunity.
