Is Globalstar (GSAT) a Better Penny Stock to Buy Now At $1 Mark?

The satellite communication company Globalstar Inc (NYSE: GSAT) had been in focus among investors some months back.

The stock eventually hit $2.98 a share, which was its highest level in 52 weeks. However, over the course past two months, the Globalstar stock has tanked by as low as 65%. The primary reason behind the remarkable slump in the stock may have been triggered by the declining confidence among investors in companies that are dependent on growth rather than profits.

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The company published its financial results for the full year 2020 in March but at the same time, it also provided an update with regards to its outlook. Globalstar management noted that the considerable weakness in the oil and gas industry had hampered its Internet of Things business in 2020. However, the situation has changed earlier in 2020 and has reserved. While the decline in the stock has been sharp, it now remains to be seen if the Globalstar stock can mount a recovery this week.

Michael Rowels

Weekend Contributor. Writing for business and finance publishers has become his passion over the last decades after he completed a master's degree in Financial Management. Sharing some opinions and forecasts to thousands of readers is a routine job for him but he never promises to invest in one stock.