Recently, shares of
) gained a meaningful 6.1% or 23 cents per share, ending the
trading session at $4 on Aug 14, 2014. Meanwhile, this surge marks
the highest growth in the last four months. The recent stock buyout
by mobile chipset giant Qualcomm Inc. (
) led to the unanticipated share rise.
Qualcomm bought nearly 4.15 million shares of Globalstar which
lends it nearly 0.4% control over the latter.
Recently, Globalstar reported second-quarter 2014 results
wherein the top line grew 21% year over year to $24 million. The
double-digit growth in revenues was mainly led by higher subscriber
equipment sales and service revenues. Moreover, adjusted EBITDA in
the reported quarter soared a sizeable 70% from the last-year
However, the bottom line in the reported quarter was
considerably affected by the non-cash charges which resulted in a
loss of $433.7 million.
Based in Covington, LA, Globalstar provides satellite voice and
data services to commercial and recreational users in over 120
countries. The company's product line offers mobile and fixed
satellite telephones, simplex and duplex satellite data modems and
flexible service packages. Many land-based and maritime industries
benefit from Globalstar's offerings which enhance productivity from
areas located beyond the coverage of cellular and landline
Qualcomm currently carries a Zacks Rank #3 (Hold). Better-ranked
stocks worth considering in the technology sector include Ericsson
) and DragonWave Inc. (
). Both have a Zacks Rank #2 (Buy).
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