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Globalstar stock falls after report devalues company spectrum
Posted: Wed, Oct 8, 2014, 8:24 AM ET (1224 GMT) Satellite communications company Globalstar denied a report this week that claimed one of the company's key assets was worthless. A report issued Monday by Kerrisdale Capital Management argued that spectrum that Globalstar currently holds for satellite communications is unlikely to have any value for terrestrial communications. Globalstar is seeking FCC permission to use that spectrum, which coincides with a band used by Wi-fi devices, for terrestrial applications. Globalstar's stock dropped 25% in trading Monday and recovered only slightly Tuesday. The company responded in a statement calling the report "fundamentally flawed" and contrary to views of much of the telecommunications industry.
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