Globalstar: Don't Buy Amazon's Possible Takeover Deal

David Zanoni12.01K FollowersFollow5ShareSavePlay(11min)CommentsSummaryGlobalstar, Inc. surged after reports of Amazon's potential $9B acquisition, but the current valuation appears excessive.GSAT trades at a forward P/S of 33.8x and 370x 2027 EPS, far above sector medians, making downside risk significant if the Amazon deal falters.Apple's 20% stake complicates any Amazon acquisition, introducing deal uncertainty and potential competitive dynamics.I recommend avoiding new Globalstar, Inc. positions at current levels; existing holders may consider a wait-and-see approach given binary event risk. DKosig/iStock via Getty Images Globalstar, Inc.'s (GSAT) stock increased 13% the day after FT.com reported that Amazon (AMZN) is considering acquiring the company. This potential transaction has been valued at about $9 billion. Amazon currently lags significantlyThis article was written byDavid Zanoni12.01K FollowersFollowDavid focuses on growth & momentum stocks that are reasonably priced and likely to outperform the market over the long-term. He is a long term investor of quality stocks and uses options for strategy. David told investors to buy in March 2009 at the bottom of the financial crisis. The S&P 500 increased 367% and the Nasdaq increased 685% from 2009 through 2019. He wants to help make people money by investing in high-quality growth stocks.Analyst’s Disclosure: I/we have a beneficial long position in the shares of AAPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The article is for informational purposes only (not a solicitation or recommendation to buy or sell stocks). David is not a registered investment adviser. Investors should do their own research or consult a financial adviser to determine what investments are appropriate for their individual situation. This article expresses my opinions, and I cannot guarantee that the information/results will be accurate. Investing in stocks involves risk and could result in losses.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.