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Chris DeMuth Jr. is the founder of Rangeley Capital LLC. Rangeley is an investment firm that focuses on event driven, value-oriented investment opportunities. Rangeley Capital and his value investing forum, Sifting the World (StW), search the world for misplaced bets. Rangeley exploits them for... More
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  • +500% YTD 18 comments
    Dec 12, 2013 11:48 AM | about stocks: GSAT

    Globalstar (NASDAQ:GSAT) is +500% YTD. The FCC is circulating the GSAT Notice of Proposed Rulemaking. We expect FCC approval. If approved by the FCC, this spectrum could be used for long term evolution (LTE) services. Utilized for Wi-Fi, GSAT spectrum could be worth around $3 per share. The market for spectrum is consolidating and it is reasonable to expect GSAT to participate in such consolidation.

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    Want to learn more? This presentation should answer many of the key questions. What is next for GSAT? One reasonable possibility would be for T-Mobile (NASDAQ:TMUS) to acquire GSAT for around $2.25 per share in cash.

    Stocks: GSAT
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Comments (18)
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  • TheCompleatAngler
    , contributor
    Comments (175) | Send Message
     
    Congratulations for the gains you've had with GSAT so far! Any idea of what to expect for when the FTC will finalize the proposed rules?
    12 Dec 2013, 11:56 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11460) | Send Message
     
    Author’s reply » It is really hard to say. Clearly we are hoping that it is soon and that it is positive.
    12 Dec 2013, 12:02 PM Reply Like
  • Aharon Levy
    , contributor
    Comments (135) | Send Message
     
    I'd rather be lucky (always a possibility) than smart (not necessarily an option). But more than either of those, I'd rather be patient. Had a pretty large stake in GSAT with a cost basis of .51 and sold in what was essentially a fit of pique about the investment thesis not yet playing out. A lesson I've learned more than once (and so not really learned at all!)
    12 Dec 2013, 12:55 PM Reply Like
  • Mike Arnold
    , contributor
    Comments (2379) | Send Message
     
    Thanks for this idea, Chris. I invested in it around $1/share, and dumped the shares after the positive FCC news in October. A nice, healthy 70% return in a couple months.

     

    I really don't have a good way to value the spectrum, which is why I decided to sell and the positive event occurred. How did you do it - in broad strokes, if you don't mind?
    12 Dec 2013, 01:02 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11460) | Send Message
     
    Author’s reply » You're welcome.

     

    As for valuing the spectrum, I had a lot of help.
    12 Dec 2013, 01:18 PM Reply Like
  • johnbarleycorn
    , contributor
    Comments (146) | Send Message
     
    I bought at 83 cents and still holding. Thanks Chris.
    12 Dec 2013, 02:56 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11460) | Send Message
     
    Author’s reply » Good. I hope that you make a lot of money on that investment.
    12 Dec 2013, 02:56 PM Reply Like
  • crazylikebudfox
    , contributor
    Comments (654) | Send Message
     
    What probability have you assigned to a Lightsquared type rejection from neighboring spectrum (Bluetooth)?
    17 Dec 2013, 02:54 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11460) | Send Message
     
    Author’s reply » Relatively high... 15 percent or so.
    17 Dec 2013, 02:59 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11460) | Send Message
     
    Author’s reply » (OTCQB:GSAT) hit a 52-week high.
    7 May 2014, 09:30 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11460) | Send Message
     
    Author’s reply » (OTCQB:GSAT) through $3.
    8 May 2014, 12:06 PM Reply Like
  • toddro
    , contributor
    Comments (226) | Send Message
     
    $GSAT's move to NYSE seemed to be well timed, and everything seems to be lining up for them now. Since they are now crossing $3 with FCC approval still pending, do you see a new "price-target" upon FCC approval?
    10 May 2014, 09:16 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11460) | Send Message
     
    Author’s reply » Higher. I don't really use specific price targets, but $5ish, give or take $1. -C
    10 May 2014, 10:38 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11460) | Send Message
     
    Author’s reply » (OTCQB:GSAT) hit a new 52-week high.
    12 May 2014, 11:41 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11460) | Send Message
     
    Author’s reply » I expect (OTCQB:GSAT) to secure FCC approval to repurpose its spectrum for a worldwide internet network. If they can secure that approval, this could be a valuable asset for any number of well known buyers including (NFLX) or (AAPL).
    14 May 2014, 06:51 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11460) | Send Message
     
    Author’s reply » (OTCQB:GSAT) hits a new 52-week high
    2 Jul 2014, 03:00 PM Reply Like
  • tromur
    , contributor
    Comments (491) | Send Message
     
    I thought we would have an answer by now from FCC. Anyone no when to expect their decision?
    3 Jul 2014, 11:29 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11460) | Send Message
     
    Author’s reply » September?
    3 Jul 2014, 11:35 AM Reply Like
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