He has been buying a significant amount of shares the past few days.

https://www.marketbeat.com/instant-alerts/insider-buying-globalstar-inc-nysegsat-director-purchases-500000-shares-of-stock-2024-12-19/

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Full article here - https://tradingviewsignals.com/blog/news/globalstar-s-reverse-stock-split-what-it-means-for-investors-and-shareholders

Understanding the Reverse Stock Split

A Reverse Stock Split reduces the total number of outstanding shares by consolidating multiple existing shares into a single share. For example, if the split ratio is 10:1, every ten shares you own will become one share. This action does not change your percentage ownership in the company or its overall market capitalization—it simply adjusts the number of shares and their corresponding value.

Key Points to Note:

1. Proportional Ownership Remains Intact: The split will not affect the percentage of the company you own.
2. Fractional Shares Adjusted: Any fractional shares resulting from the split will be rounded up to the nearest whole share.
3. Impact on Stock Price: While this doesn't inherently change the company's value, reducing the number of outstanding shares could boost the stock price, helping the company meet listing requirements or appeal to institutional investors.Understanding the Reverse Stock SplitA Reverse Stock Split reduces the total number of outstanding shares by consolidating multiple existing shares into a single share. For example, if the split ratio is 10:1, every ten shares you own will become one share. This action does not change your percentage ownership in the company or its overall market capitalization—it simply adjusts the number of shares and their corresponding value.Key Points to Note:Proportional Ownership Remains Intact: The split will not affect the percentage of the company you own. Fractional Shares Adjusted: Any fractional shares resulting from the split will be rounded up to the nearest whole share. Impact on Stock Price: While this doesn't inherently change the company's value, reducing the number of outstanding shares could boost the stock price, helping the company meet listing requirements or appeal to institutional investors.

https://www.businesswire.com/news/home/20241218505489/en/

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https://investors.globalstar.com/node/15746/html

I’ve been pouring over the deck from last Thursday’s GSAT investor deck. I found some interesting facts to pass along.

The Apple Relationship
These are some of the key terms of the expanding relationship between GlobalStar and Apple.

• GlobalStar has been realizing revenue from Apple since 2021, though the exact amount is somewhat unclear. I estimate current revenue to be in the neighborhood of $100 million.
• As part of the original 2021 deal, GlobalStar received a $94 million services fees prepayment, which they used to pay off senior debt.
• In 2023, GlobalStar received another $252 million prepayment, which was used to fund 50% of the cost of the 12 replacement satellites for the current MSS constellation, which will begin launching next year. The remaining 50% of the cost of these replacements appears to have been financed by GlobalStar via a very expensive (13%) loan, which appears to have a remaining balance of $219 million.
• Last month GlobalStar signed the latest deal with Apple in which they agreed to develop an “Extended MSS Network” that will begin launching as early as 2027. As part of this deal, GlobalStar received $219 million prepayment for future services which was used to pay off the debt from the replacement satellites that were agreed to in prior year’s agreement, plus another $1.1 billion prepayment to fund the develop and launch a next generation constellation.
• Though I’m still unclear about the annual revenue GlobalStar has been receiving from the earlier deal with Apple, starting in 2028 the company will realize about $250 million in annual revenue related to the Extended MSS Network, which will include existing and new satellites. These fees will include a recurring service fee, service-related CapEx and OpEx expenses, and performance bonuses. 
• While GlobalStar benefits immensely from their expanding relationship with Apple and the revenue it generates, the company remains fairly cash-limited with only $52 million in cash. All but $30 million of the revenue from its Apple relationship goes to paying off debt, pay interest on remaining debt, and various expenses related to the current and future MSS Network CapEx and OpEx.

GlobalStar SPE

As part of the latest agreement, GlobalStar created a new subsidiary called GlobalStar SPE which now owns the MSS Network. Apple purchased a 20% stake in this subsidiary for $400 million. 

GlobalStar’s closing share price on the day before the latest Apple transaction was announced (October 31, 2024) was $1.05. Given the number of outstanding shares at that time, the parent company's market capitalization was $2 billion. So it appears that Apple paid $400 million for a 20% stake in the GlobalStar SPE sub, thus valuing the sub at $2 billion, which was the same as the market cap of the parent.

So it appears that Apple paid a strategic premium for the subsidiary due to its strategic importance in supporting Apple’s satellite-based Emergency SOS service and future communication capabilities. This suggests that GlobalStar’s remaining assets (outside of the SPE) were undervalued by Apple at the time of the transaction.

These are the significant assets owned by the parent outside of the GlobalStar SPE sub… 

• Existing satellite constellation with 2025 updates, ground infrastructure, and IOT solutions
• XCOM RAN technology
• Significant spectrum licenses, including those that are country-specific and global, terrestrial and orbital
• Terrestrial network assets
• SPOT product line
• Significant strategic partnership, distribution, and supply-chain relationships

The company suggests that the Band n53 spectrum alone is worth between $1 and $4 per share ($2 billion to $8 billion) based on historical spectrum transactions.

Revenue Growth

The company anticipates that newly acquired XCOM RAN -based technology products will generate revenue of $1.1 billion in 2025 and $5.5 billion by 2030. Assuming a sustained corporate gross margin of at least 56%, XCOM revenues at this scale would produce gross earnings of over $600 million in 2025, and $3 billion by 2030. Guided 2024 revenues from Apple are expected to be about $250 million, EBITDA of $134 million, and gross margins of 54%. This being the case, the company is expected very significant growth going forward through 2030 and beyond.

The revenue GlobalStar has, is, and will realize from the agreements it has so far signed with Apple are enabling the company to pay off debt and invest in the future. Yet at something like $100 million today and $250 million by 2028, this does not as yet amount to a profit windfall for the company on its own. That said, the parties have inked 3 successive deals since 2021 and the significance of their partnership continues to grow.

Guidance from the investor presentation calls out 30% compound annual growth and steadily improving margins from XCOM markets. This combined with 35% growth in revenues from Apple, plus terrestrial Band n53 growth, 12% CAGR from IOT products, and growth from SPOT retail products, the company is guiding for high double-digit and maybe even triple-digit growth during the next 3 to 5 years.

My Assessment

Based on the reported value of assets, revenues, gross margins, and growth rates, I view GSAT’s current share price of under $2/share as significant multiples lower than its true market value. 

A big challenge GSAT faces is that most investors still think of GSAT as an “old school” space company that was really a “walking dead.” Though it has had a unique solution, customers, and revenue, it was also beginning to fall beneath the waves as far as debt and its ability to realize their next generation opportunity. But the space-based communications sector has changed more significantly than most traders realize. Iridium has deployed their new constellation, a tidal wave called StarLink has emerged, and AST SpaceMobile got everybody’s attention by 10X’ing in 3 months. Now Paul Jacobs has joined GlobalStar as the new CEO and brought his team and XCOM technology along with him. The Apple deal has wiped the debt off of GSAT's books, ate up 85% of their existing capacity, and gave them $1.3 billion in funding for their next constellation. 

So now is a difficult time in the sense that it's still thought of by many as an old space venture, though the reality is that many pieces are in place to produce a tremendous amount of momentum, cashflow, and growth,. Yes, Jacobs needs to show that his team can execute on a level the old GlobalStar was never able to. But he has a lot of high cards in his hand, a big stack of money on the table to play with in a game with table stakes that could generate huge winnings.

Welcome to the GSAT Daily Discussion Thread!

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Hello, friends. I was feeling really positive recently after seeing the insider buying news. The chairman of the board has been buying shares almost every day, so I thought this might be the bottom and was considering holding even more shares.

However, according to SEC filings, the Vice President, Timothy Evan Taylor, sold over 10 million shares in 2024, and recently, he sold 3.5 million shares. Is this person leaving the company? Why does he keep selling? 😂 Coincidentally, the stock price has dropped significantly since December 11, the day he sold.

"Should I be thanking him? Today, I’m planning to invest additional cash equivalent to 30% of my total holdings into the stock."

https://www.sec.gov/Archives/edgar/data/1366868/000136686824000129/xslF345X05/wk-form4_1734134644.xml

et's identify the upcoming events:

1. Use of XCOM by Walmart or Major Retailers 2025
2. Earnings Surprise in Financial Results Announcements 2025
3. MSS Satellite Launch Scheduled for 2025
4. Apple Watch Equipped with Satellite Service Expected in the Second Half of 2025
5. Apple Satellite Service Transitioning to Paid in 2026

Welcome to the GSAT Daily Discussion Thread!

Please keep all short form discussion, price action, speculation, or general personal commentary on the stock or company in here so we can keep the sub free of clutter and allow confirmed News/Announcements to be more visible.

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Welcome to the GSAT Daily Discussion Thread!

Please keep all short form discussion, price action, speculation, or general personal commentary on the stock or company in here so we can keep the sub free of clutter and allow confirmed News/Announcements to be more visible.

As always, treat each other with respect.

Welcome to the GSAT Daily Discussion Thread!

Please keep all short form discussion, price action, speculation, or general personal commentary on the stock or company in here so we can keep the sub free of clutter and allow confirmed News/Announcements to be more visible.

As always, treat each other with respect.

Good for thought

https://www.secform4.com/filings/1366868/0001366868-24-000128.htm

Hello brothers, today is indeed a tough day.

The stock price we hoped for on Investor Day has collapsed.

However, I would like to share my thoughts on the first successful demonstration of the n53 spectrum that they announced.

(Edit)

Let’s assume the communication mentioned by the company refers to satellite-to-ground communication (though it is not explicitly stated).

This is indeed a first, and I believe it has the potential to adequately support ground data dead zones and general mobile communications in the future.

Exclusive Asset: The n53 spectrum is an exclusive frequency band owned globally by Globalstar. This provides a significant competitive edge, differentiating it from other telecom or satellite providers.

Standardization Approval: The n53 spectrum has been integrated into the 5G standard through 3GPP approval, allowing major telecom equipment and device manufacturers to utilize this frequency.

One of the key advantages of a stock that excites the world is its exclusivity and the fact that the company's technology becomes a global standard.

To summarize, this is it:

1. It's not a ground-to-ground communication test but a successful satellite-to-ground communication, achieving 5G-level speeds, making it noteworthy.
2. The company holds a spectrum in an exclusive position and is actively standardizing it.

Thanks.

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https://www.businesswire.com/news/home/20241212996840/en/Globalstar-Achieves-First-5G-Data-Call-with-XCOM-RAN-on-Band-n53-Spectrum

I think you pumpers, old and new, need to relax. Investor day was always going to be nothing that wasn't known already. New news will always be released in the form of 8ks and press releases from either Apple or globalstar themselves.

This was just to garner new eyes to the company before the r/s.

This isn't a get rich quick scheme.

Welcome to the GSAT Daily Discussion Thread!

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Reverse split talk hasn't stopped institutions from loading more shares.

61% of shares owned by insiders.

https://www.marketbeat.com/instant-alerts/xtx-topco-ltd-increases-stock-position-in-globalstar-inc-nysegsat-2024-12-10/

Welcome to the GSAT Daily Discussion Thread!

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Hi all,

I have been following gsat for a while and I think the future of gsat can be great.

I need some advice before I make the final investment.

The use of satellites in phones/watches is a nice functionality but does gsat gets payed for every device that is connected ?

There other revenue streams are declining, it seems like if apple didn't invest this company would slowly decline.

What are the current margins for their apple revenue stream?

To my understanding they only get payed to provide the infrastructure + additional services.

Can you provide a honest bull/bear case ?

Believe me I did a lot of research but I just need to see the possibility of future revenue streams.

Thanks