As the company’s name implies, satellite communications specialist Globalstar (NYSEAMERICAN:GSAT) is a niche-market leader with a global perspective. The upside potential is definitely there, yet GSAT stock remains surprisingly low-priced.
The company is indisputably in growth mode. For instance, Globalstar’s adjusted EBITDA exhibited a compound annual growth rate (CAGR) of 20% from 2016 to 2020.
Indeed, the entire industry is expected to expand rapidly. As Globalstar reports, the worldwide satellite IoT (Internet of things) market is projected to reach a whopping $2.5 billion by the year 2027.
Forward-thinking investors might want to get a slice of that huge fiscal pie. Indeed, just a small investment in Globalstar today could yield surprisingly strong returns as the satellite market comes of age.
GSAT Stock at a Glance
Notice that I emphasized a small investment in this company. After all, low-priced stocks can be volatile, so please don’t pour your entire investment account into GSAT stock.
That being said, it’s easy to see this stock going higher in 2021’s second half. There’s moon-shot potential written all over Globalstar, but the shareholders might need to be patient.
Consider this. After finishing 2020 at just 34 cents, GSAT stock rallied as high as $2.98 in February.
That’s the type of run-up that can put the short-sellers out of commission. Granted, there was a retracement below $2, but the bulls might just be reloading for the next price spike.
Checking in on July 26, GSAT stock settled at $1.41 and everything seems calm. Yet, the stock could double or triple again – we’ve seen it happen before, not too long ago.
As I’ve pointed out before, Globalstar offers a variety of satellite-enabled products. Yet, we could identify the company’s crown jewel as the SPOT Satellite Messenger.
Actually, there are three versions of SPOT. First, there’s the SPOT Trace, which includes an anti-theft device and allows users to track assets beyond terrestrial coverage.
Next is the SPOT X, which offers keyboard functionality and is the “Only fully integrated (single device) two-way messaging device on market.”
And last but certainly not least is the SPOT Gen4, a satellite GPS messenger with extra tracking features and an enhanced mapping interface
If any of these devices is on the leading edge of satellite connectivity, it would be the Gen4.
Globalstar invites you to “Add this rugged, pocket-sized safety device to your personal protective equipment (PPE) to stay connected to your remote or lone workers, no matter how far off the grid they go.”
Moreover, through a partnership with FocusPoint International, Globalstar customers can add the Global Overwatch & Rescue Plan to get immediate access to crisis assistance services.
This includes 24/7 multi-lingual crisis consultation, medical and dental referrals, and extensive travel, medical and security assistance benefits.
It’s a nice enhancement to the SPOT Gen4, which is already feature-rich.
Keeping the Team Safe
It seems that you just never know where you might find the SPOT Gen4 next.
Just recently, Globalstar announced that the Yorkshire Peat Partnership, which is led by the U.K.’s Yorkshire Wildlife Trust, will use SPOT Gen4 messengers to track and safeguard the scientists and surveyors as they work throughout Yorkshire’s remote upland moors.
Apparently, the participants make use of SPOT’s tracking function every day.
This function helps the partnership’s managers to always know where the researchers are, while also helping with the record-keeping of survey activities.
In light of this collaboration, Globalstar EMEA General Manager Mark O’Connell emphasized the broader benefits afforded by his company’s satellite technology.
“We’re very proud that SPOT is helping to keep the Yorkshire Peat Partnership team safe as they carry out their essential work and stewardship of the countryside, something from which the environment, economy, residents and visitors all benefit,” O’Connell said.
The Takeaway on GSAT Stock
Globalstar vision seems to have no geographic boundaries.
Apparently, the company’s seeking to connect people across multiple locations, thereby enhancing their safety and security.
It’s exciting to consider the ways that satellite technology can benefit humanity – and how quickly this niche market is expanding.
Granted, GSAT stock is a fast mover and an investment might not bear fruit immediately.
That’s fine, as the long-term outlook is bright and the data points to outsized growth, sooner or later.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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