Globalstar Inc Com (NASDAQ:GSAT)
The Company is a provider of mobile voice and data communication services via satellite. The Company offers voice and data communications services to government agencies, businesses and other customers in over 120 countries.
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Very successful.
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good gps service
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Rea life purchase price 1.66.
Company launches next generation of sats in mid October. Company should continue to narrow loss and return to profit in near future.
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GSAT update in brief [as of April 2010]:
just on the Export Credit Agency COFACE financing alone (finalized last july) GSAT is worth ~$5/share.
if you add in the Book/Fair Value of the all the assets, i.e. the value of the 30 Mhz WORLD WIDE LICENSED (in 160 countries) HARMONIZED spectrum along with the (US/domestic only at this time) ATC licensing/authorization/leasing (which IRDM dose not have), the gateways owned around the world, the remnant satellite constellation, the technological developments such as the SPOT SATELLITE MESSENGER ( http://findmespot.com & http://www.spotadventures.com ), etc, money raised, loans arranged and guaranteed, SOCC/GOCC, supply agreements arranged, market testing so far, existing customer base (largest in the world and growing), employment agreements, and all the rest GSAT should be trading in the $20+ range...
while it's certainly true that most of GSAT's network has little or no cash flow from operations due to the majority of their satellites only being able to operate in simplex mode presently -- until their fully-financed second generation constellation is launched starting this summer -- they have made a Good Go of/for It with just the SPOT and Simplex capability and are getting pretty close to having the enterprise be EBITDA positive.
but this illustrious industry segment is just soooooooooo out of favor at the moment and still has a HUGE over hang (I call it malaria) from its and iridium's and ICO's previous (chapter 11'd) incarnations, it's why it trades at what it dose and is a significant steal at this price -- if you can just let the shares sit for the next 12 to 18 to 24 as GSAT's FULLY FINANCED (unlike IRDM) second generation constellation gets launched and becomes operational and let Mr. Market take recognition you're gonna have a multi-multi bagger on hand.
for more details and for a fair read on GSAT check out the equity analysis at http://devilcapital.com/investments/GSAT as well at the latest investor presentation under [Investor Relations] at http://www.globalstar.com/en/ -- oh, and don't miss out on the recent share transactions at http://www.mffais.com/gsat and lastly, for a technical analysis, some charts with support/resistance levels, check out: http://www.stockta.com/cgi-bin/analysis.pl?symb=GSAT&num1=1&cobrand=&mode=stock
other bboards and forums to read:
http://siliconinvestor.advfn.com/subject.aspx?subjectid=17382
http://siliconinvestor.advfn.com/subject.aspx?subjectid=52022
http://messages.finance.yahoo.com/mb/GSAT
http://tmfassociates.com/blog/
see also:
the article with CEO's from the five largest MSS companies debating “New Solutions and New Opportunities: The MSS CEOs Speak Out” from the [held in March 2010] MSUA-7 panel, at http://www.satellitetoday.com/eletters/satellite2010_daily/fromtheshowfloor/MSS-Leaders-Assess-Market-Hail-FCC-Broadband-Plan_33664.html
DISCLOSURE: long GSAT
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I've been waited for a while for this to become CAPS-able. They've got everything I like in a stock...low price, great products, lots of news, in recovery mode from past problems, and rapidly rising prices. A pure winner, which has already made me a bunch of real money.
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This is a truly global company. Third World countries adopt wireless because they lack a wired infrastructure.
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Enochroot pick.
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Satellite constellation worries are overblown. New satellites just successfully launched, more on the way. It's the most affordable satellite phone service out there, and I've been a satisfied user of the service for three years. I'm paying $35/mo for a legacy plan that gets me 30 minutes. $1/minute for overages. Not bad at all for a satellite phone that works everywhere on land basically, and 2-300 miles out and in the Caribbean. Beats Iridium hands down, and can be a lifesaver in unpredictable times.
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new calling plan priceing
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This is a tough one. They lead the world in their sector but it is an expensive arena to paly in. Stock has dropped 50% since IPO. I believe that as theur picture becomes clearer that they will more than make up. This is a long term investment-not for the faint of heart.
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Market share in growth market. Stock on good dip right now. Will outperform for a year from this point and going forward. Target price $14.00 in 24 months.
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Globalstar, Inc. (Globalstar) is a provider of mobile voice and data communication services via satellite. The company uses 43 in-orbit satellites and 25 ground stations, to provide its services. The company’s foot print spans 120 countries across the world and its customers includes oil and gas industry , government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users.
The company’s operating performance has been satisfactory. It is generating cash at operating level. However the biggest drivers for the company going forward would be their new handset GPS-1700 and availability/approval of spectrum for ancillary terrestrial component (ATC).
GPS-1700 has better form factor and is 25% less expensive than its predecessor GPS-1600. This can improve company’s penetration and enable company to ramp up its operations. The company has 27.85 MHz of spectrum, of which 11 MHz has been approved for ATC. The company expects to receive approval for all 27.85 MHz in fiscal 2007.Such a development would increase the value of the spectrum as it would enable the company to deploy a hybrid satellite/terrestrial network.
The company does face certain risks. The chief among them would be the class action suit filed against the company alleging that the Prospectus failed to disclose that Globalstar's constellation of satellites was degrading at an increasingly rapid rate and that the length of their commercial viability was quickly decreasing.
Company’s stock has underperformed since its listing in November, 2006 but its valuation still seems rich. The company’s operational leverage is also on the higher side. Hence any downswing in its average revenue per user could accentuate its operational risk and can hurt its bottom-line significantly. The company is unlikely to generate free cash flows for next few years as it requires more than $1 billion for its capital expenditure. All these facts coupled with sentimental overhang of lawsuit would likely lead to its underperformance going forward.
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I say, "Buy low, sell high". I'll bet you've never heard that before... With a 2 day dip from 14+ to just over 10, there is room for a bounce. I intend to capitalize!
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seems flat lined
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no clear direction
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