Top Tech Stocks – Globalstar (GSAT)
GSAT Return: 510%
Globalstar (GSAT) was one of the top tech stocks of the year. GSAT started over twenty years ago as a joint venture between Loral (LORL) and Qualcomm (QCOM). The focus was to launch satellites for phone communications.
However, it turned out to be hugely expensive and the market demand was muted. As a result, Globalstar filed for bankruptcy in 2002. After this, there was an extensive restructuring — but it too mostly failed, especially with the onset of the financial crisis in 2008. So GSAT had a habit of winding up as being at the bottom of the charts for tech stocks for many years!
But in 2013, the fortunes of GSAT stock improved tremendously. Part of the reason was that revenues began to grow again and costs got under control. Plus, GSAT stock also benefited from the potential value of its satellite airwaves, which may be used for mobile communications.
Basically, this means Globalstar could be buyout bait for companies like Dish Network (DISH), Comcast (CMCSA) and perhaps even Amazon.com (AMZN). Given the potential for a big premium on a deal, it was enough to spark the GSAT stock price and put it at the top of the tech stocks.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.