Shares of satellite communications veteran Globalstar (NYSEMKT:GSAT) fell 27.7% in March of 2018, according to data from S&P Global Market Intelligence. The company didn't have a whole lot of news to report last month, but investors are losing patience with the company's innovative-but-difficult plans to build a next-generation terrestrial data network.
The company got its final regulatory approvals last summer and has been looking for partners since then, hoping to get a high-speed network going in a sparsely populated slice of licensed radio spectrum. But no partnerships have been announced, and Globalstar's share prices keep falling as the radio silence continues. March was no exception.
Investors with a yen for high-risk gambles could start a position in Globalstar today, hoping to capitalize on the company's quest to find a suitable networking partner. To be clear, the company is not planning to become a network service operator itself, but a provider of new technologies and solutions in an unused spectrum band. That type of deal can be very profitable, especially for a smaller company like Globalstar with just $113 million in annual sales and negative free cash flow of $7.4 million.
But if you do, please bear in mind that this is more of a gamble than an investment. Globalstar's management are keeping a stiff upper lip these days but are clearly running out of ideas. 5G wireless technologies just might provide the final piece of the puzzle, but even that idea is a long shot now.
Personally, I prefer to just keep an eye on Globalstar's innovative antics from the sidelines. Your mileage may vary.