Globalstar (NYSEMKT:GSAT) Shareholders Have Enjoyed A Whopping 463% Share Price Gain

While stock picking isn't easy, for those willing to persist and learn, it is possible to buy shares in great companies, and generate wonderful returns. When an investor finds a multi-bagger (a stock that goes up over 200%), it makes a big difference to their portfolio. In the case of Globalstar, Inc. (NYSEMKT:GSAT), the share price is up an incredible 463% in the last year alone. It's up an even more impressive 674% over the last quarter. And shareholders have also done well over the long term, with an increase of 161% in the last three years.

See our latest analysis for Globalstar

Given that Globalstar didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Globalstar actually shrunk its revenue over the last year, with a reduction of 3.5%. So it's very confusing to see that the share price gained a whopping 463%. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. While this gain looks like speculative buying to us, sometimes speculation pays off.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. You can see what analysts are predicting for Globalstar in this interactive graph of future profit estimates.

A Different Perspective

We're pleased to report that Globalstar shareholders have received a total shareholder return of 463% over one year. That's better than the annualised return of 20% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Globalstar better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Globalstar you should be aware of, and 1 of them is a bit concerning.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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