Analysts Defending Globalstar, Inc.; Shares Bounce Back After Morning Fall

Rumors circulated on Wednesday across trading and news desks that Kerrisdale Capital is rumored to hold a short position in

following a Tweet by Kerrisdale Capital:

Kerrisdale Capital plans to hold a live presentation on October 6 to present its “best short” idea. Several firms, according to Bloomberg, on Thursday issued a defense of Globalstar shares. One of the rumors circulating across trading and news desks is that Kerrisdale Capital's presentation will focus on the coming availability of 5.1 Wi-Fi, making the older generation, 2.4 Wi-Fi worthless Analysts at Odean Capital stated that “nothing could be further from the truth” given power restriction limits threat of 5GHz as a carrier grade alternative. Odean Capital maintained a belief that the weakness in Globalstar shares represents a buying opportunity. James McIlree of Chardan stated that Globalstar will likely monetize spectrum following FCC approval of NPRM. The company is also likely to seek regulatory relief of L-band. The analyst placed a $6 price target on shares, which could increase “substantially” if the company also benefits from international approval of Channel 14 Wi-Fi or satellite results improvement. Stephen Sweeney of Elevation TMT holds a similar belief and stated that the FCC approval for NPRM is “going well” with no new opposition. Sweeney said that a release of a 5Ghz spectrum is not a negative factor for Globalstar. When the FCC freed up some 5Ghz for cable several months ago, it was considered as a positive development for Globalstar, according to Sweeney, who recommended buying shares on recent weakness. After falling Thursday morning, shares of Globalstar, Inc. closed at $3.03, up 1.5 percent.