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Globalstar (NYSE:GSAT) quickly rose and has dropped 1.7% amid a pitch from Anson Funds at a conference.
Anson Funds portfolio manager Sagar Gupta pitched Globalstar (GSAT) at the Bloomberg Activism Forum 2023 in New York City.
He believes the satellite communications company may be a “7-bagger.” He discussed the company’s relationship with Apple (AAPL) and believes the company has a lot of spectrum that can be monetized.
Anson plans to work “constructively” with Globalstar (GSAT), though it’s leaving all options on the table.
Globalstar (GSAT) could be a potential takeout target and may be compared to StraightPath, which was a spectrum play that was trading in the $20s and was taken out by Verizon (VZ) for $180 a share after a bidding war in 2017, according to Anson’s Gupta.
“This is exactly why folks are calling Globlastar potentially the next StraighPath given the immense amoumt of latent value in the spectrum,” Gupta said.
“In conclusion, we believe the company’s new CEO and board have everything they need to succeed with monetizing their spectrum,” Gupta added. “However given the incredibly long time line it’s taken to get to this point, any further delays to the plan or any failure to sustainably create value in the public markets from spectrum monetization we believe the board should shift its focus toward a sale of the company.”
Globalstar’s (GSAT) short interst is 4.5%.
