Globalstar Shares Rise After Stock-shorter Cashes Out
PARIS — An activist investor that in October said it was betting heavily against mobile satellite services provider Globalstar on Feb. 17 announced it had sold out its short position of around $7.3 million, or 3.8 percent of Globalstar’s total share count.
New York-based Kerrisdale Advisers’ move, which had occurred by Dec. 31 but was not disclosed to the U.S. Securities and Exchange Commission (SEC) until Feb. 17, caused Globalstar shares to rise 6.25 percent on the New York Stock Exchange, and another 8 percent in trading after the market’s close.
Covington, Louisiana-based Globalstar operates a fleet of mobile communications satellites for voice and data deral Communications Commission on licensing Globalstar radio spectrum for a commercial terrestrial WiFi service.
Globalstar says the Terrestrial Low Power Service would ease WiFi bottlenecks. Kerrisdale was among the most vocal naysayers, alleging that the company’s TLPS was not needed and might not be feasible.
Kerrisdale’s public trashing of Globalstar’s business caused a 50 percent drop in the company’s share price. Shares have since recovered as the company has taken the offensive against Kerrisdale and others who doubt the value of the company’s spectrum for TLPS.