What happened

Shares of small-cap satellite communications stock Globalstar (NYSEMKT:GSAT) closed up 11.9% in Tuesday trading. There wasn't any news to explain the stock's rise, however -- no earnings, no press releases, no analyst upgrades, nor even a change in price target. So far as I can see, there was no ... nothing.

So what

And yet that's not terribly unusual for Globalstar stock. Although it's a sizable company (Globalstar's near-$600 million in market capitalization is actually more than rival Intelsat was valued at one year ago) and carrying a relatively modest debt load for this capital intensive industry (just $475 million, net of cash), Globalstar is cursed with an exceedingly tiny per-share price that makes its stock subject to violent swings on pretty much a daily basis.

Over the past month, for example, Globalstar stock experienced 5%-or-greater swings in stock price roughly every other day -- which seems overfrequent until you realize that all it takes to move Globalstar that much is a $0.02 wobble in stock price.

Satellite in orbit.

Image source: Getty Images.

Now what

Today's shift in stock price was a bit bigger than average -- five whole cents to be precise. Still, in the grand scheme of things, it too was but a wobble.

If you're considering investing in this penny stock, you'd better get used to such wobbles, though, because they happen more often than not -- and most often for no reason at all.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.