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Globalstar, Inc. (GSAT): Research Note


Ludlow Capital Group Issues Research Opinion on Globalstar, Inc. (GSAT)
Last Updated: Jan. 22, 2009 – 4:51pm EST

(NEW YORK)--Ludlow Capital Group, Inc. has issued a research opinion on Globalstar, Inc. (NASD: GSAT), a leader in personal satellite messaging and emergency communications, with a B+ rating, and near-term price target of $1.20 per share.

It's in Ludlow Capital's research opinion that Globalstar, along with the market, has been beating down over the past few months and is currently providing attractive valuation for longer-term investors at these levels.

The Company launch of their SPOT Satellite GPS Messenger(tm), and retaining of Les Stroud, the host of Discovery Channels 'Survivor Man', as chief pitchman for the new device and service should position Globalstar well for the personalized GPS tracking and communication retail market.

Infrastructure Market

Although not a direct infrastructure play, the need for global tracking and next generation logistics may be incorporated in any US and international infrastructure build-out plans. With approximately 48 in-orbit satellites and 25 ground stations, as of Dec. 2007, the Company may be well positioned to take advantage of any build-out, or upgrade plans to the global trade and emergency service infrastructure network.

The Company currently has a market cap of only around $40 million, with $12.5 million of cash on the balance sheet. At $0.35 per share the Company is trading at a price to book value of .12, with a book value per share of $3.21.

Ludlow Capital Group finds Globalstar (GSAT) an attractive long-term investment play, and has issued a B+ rating and near-term price target of $1.20 per share.