Globalstar Offers Cheap Exposure to the Satellite Communications Niche


Maybe you haven’t considered investing in a satellite services business before. Globalstar (NYSEAMERICAN:GSAT) can give you easy access to this niche market as GSAT stock is affordable for most account sizes.

Visualization of the communication network around Earth. communications stocks
Source: NicoElNino /

Actually, we shouldn’t pigeonhole Globalstar as a satellite business. The company also specializes in commercial IoT, or Internet of things.

Because of its low price point, it’s possible that GSAT stock could move fast in the coming weeks. As InvestorPlace contributor William White reported, one analyst sees gains of 150% or more in this stock.

There’s no way to guarantee returns of that magnitude. Still, there are reasons to believe that Globalstar is delving into high-potential market segments – including one that could literally be a lifesaver.

GSAT Stock at a Glance

To put it mildly, GSAT stock has been on a wild ride in 2021. At the end of last year, it was priced at just 34 cents — a real bargain, as it turns out.

Globalstar shares went on a rocket ride in January and the first half of February in 2021, even reaching a 52-week high of $2.98. It’s possible that Reddit traders were involved in this run-up, but that would be difficult to prove.

In any case, as often happens, price chasers got punished. After topping out in February, GSAT stock flopped around but generally trended downwards.

As of July 7, Globalstar shares could be picked up for $1.64 apiece. If you’re sitting on your hands and waiting around for the stock price to return to 34 cents again, you might be waiting forever.

Instead, it’s possible to start accumulating shares while GSAT stock is below its peak price.

Then, if the stock moves back towards its prior high, you’ll need to decide whether to take profits or not — and that’s not such a bad problem to have.

A Large Opportunity

Globalstar offers a number of products. However, some folks would claim that the company’s crown jewel is the SPOT Satellite Messenger.

As the company explains, SPOT is “affordable and reliable while delivering location-based tracking and messaging in personnel safety management.”

With its one-touch S.O.S. button which connects the user with local emergency response teams around the world, SPOT devices could be considered lifesaving technology.

But again, as significant as SPOT may be, that’s not all with Globalstar, as the company is also advancing other products and services.

This was evident as Globalstar released its first-quarter 2021 results. In the press release, Globalstar CEO Dave Kagan emphasized his company’s commercial IoT pipeline.

Kagan even went so far as to tease “a large opportunity, potentially north of 100,000 units, that we are actively pursuing for remote monitoring in the alternative energy segment.”

So evidently, Globalstar is straddling several niche markets at once: satellite services, IoT, alternative energy and possibly others.

Bringing Peace of Mind

Clearly, Globalstar is prepared to address a broad variety of markets. We can even add crisis assistance services and travel risk management to the list.

Reportedly, Globalstar recently announced a partnership with FocusPoint International.

Together, the companies will provide crisis assistance services to Globalstar customers through the Global Overwatch & Rescue Plan.

An assistance plan by FocusPoint International, Overwatch & Rescue comes standard with 24/7 multi-lingual crisis consultation, medical and dental referrals and more.

Moreover, the plan provides extensive travel, medical and security assistance benefits. These include no-cost evacuations for users who choose the annual plan.

Effective immediately, Globalstar and SPOT customers can add Overwatch & Rescue as an optional assistance service for just $24.95 per year.

As Kagan points out, offering this plan “can help further improve” Globalstar’s customers’ “peace of mind.”

Besides, “FocusPoint provides a comprehensive risk consulting service that is a great compliment to the connectivity we provide our customers,” Kagan adds.

The Takeaway

So yes, it’s true: GSAT stock is a cheap entryway into the world of satellite-based services.

Yet, there’s more to Globalstar than that. The company is actually quite diversified in the markets it addresses.

And only time will tell, but Kagan’s “large opportunity” could turn out to be a breakthrough moment for Globalstar.

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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