Globalstar Falls 8% After CEO Speaks With Jim Cramer

Globalstar, Inc GSAT fell more than 8 percent Tuesday morning despite its chairman and CEO buying shares and defending his stock on CNBC.

The decline comes after Jim Cramer warned investors away from the stock on Friday. Cramer commented, "I thought it was too risky for regular investors, especially because of concerns about the balance sheet and worries that the company, which increased its share count by 76 percent over the last year, might be in danger of massively diluting its stock in order to appease its creditors."

On Monday, Cramer hosted Globalstar founder and CEO, Jay Monroe, to defend the company.

"It is polarizing because of Kerrisdale. Prior to that I think people understood pretty well that the spectrum was needed throughout the country… to me, when people understood that and they understood how it was going to be used, it was relatively speaking, smooth sailing. When Kerrisdale introduced a lot of negative chatter to the discussion, taking positions that were technically unsound but that were none the less, loud, we ended up in the situation that we are in," Monroe told Cramer.

Between Monday and Tuesday it was reported that Monroe recently bought 500,000 shares of Globalstar, but the news was not enought to lift the stock.

Globalstar recently traded at $2.58, down 7.86 percent.