Inok/iStock via Getty Images
Globalstar (NYSE:GSAT) quickly got up and has fell 1.7% amid an Anson Funds pitch at a conference.
Anson Funds portfolio manager Sagar Gupta pitched Globalstar (GSAT) at the 2023 Bloomberg Activism Forum in New York City.
He believes the satellite communications company can be a ‘7-bagger’. He discussed the company’s relationship with Apple (AAPL) and believes the company has a lot of spectrum with which to generate revenue.
Anson plans to work “constructively” with Globalstar (GSAT), although it leaves all options on the table.
Globalstar (GSAT) could be a potential target and could be compared to StraightPath, a spectrum play that traded in the $20s and was taken out by Verizon (VZ) at $180 per share after a bidding war in 2017, according to Anson’s Gupta.
“This is exactly why people may be calling Globlastar the next StraighPath, given the enormous amount of latent value in the spectrum,” said Gupta.
“In conclusion, we believe that the company’s new CEO and board have everything they need to succeed in monetizing their spectrum,” Gupta added. “Given the incredibly long time needed to reach this point, any further delays to the plan or the inability to sustainably create value in the public markets through spectrum monetization, we believe that the board his focus must shift to selling the company. .”
Globalstar’s (GSAT) short interest rate is 4.5%.
