Please ensure Javascript is enabled for purposes of website accessibility

Why Globalstar, Inc. Stock Popped Today

By Steve Symington - Feb 23, 2016 at 6:24PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A promising new partnership has investors excited for the mobile satellite data company.

Credit: Globalstar,

What: Shares of Globalstar (GSAT 5.42%) surged 10.4% Tuesday after the mobile satellite voice and data services provider announced a new partnership with Avidyne, a leading provider of integrated avionics and automatic dependent surveillance-broadcast (ADS-B) systems for general aviation aircraft.

So what: According to Globalstar's press release today, it will work together with Avidyne to "develop and certify satellite-based Internet and voice communications products for the aviation market." These products will leverage Globalstar's second-gen satellite network, and be exclusively provided by Avidyne to aircraft manufacturers through its worldwide dealer network.

This means that aircraft owners and operators will have affordable Internet access products and services with much higher data speeds via Globalstar's new network for light and medium aircraft. In addition, Globalstar says the new products will include effective backup communication systems for larger business aircraft equipped with high-bandwidth satcom, or air-to-ground communications systems.

"We are laser-focused on continuing to make Globalstar the market leader for the growing data communications needs around the world, added Globalstar CEO Jay Monroe. "This partnership represents another step forward in that endeavor as we find ways to adapt our technology to the needs of the aviation sector."

Now what: Avidyne CEO Dan Schwinn elaborated that, in addition to Globalstar's second-gen satellite network, the new products and services will also rely on new ground infrastructure upgrades set to go live during the next few months. Meanwhile, Globalstar promises more specific details are "forthcoming" for new certified Wi-Fi-enabled products and services.

Though it remains unclear exactly how much incremental revenue this partnership could mean for Globalstar at this point, with shares down more than 50% during the past year, and the company on the cusp of sustained profitability, it's hard to blame the market for celebrating any good news.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Globalstar Stock Quote
Globalstar
GSAT
$1.75 (5.42%) $0.09

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
403%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.