Shares of Globalstar, a Louisiana-based satellite company, spiked 35.6 percent on Friday after it said federal regulators approved its spectrum for Wi-Fi use.
The stock gained another 20 percent in after-hours trading.
The company is one of the most shorted on the New York Stock Exchange as hedge funds had made bets that the spectrum was far from valuable.
One of the hedge fund investors, Sahm Adrangi, of Kerrisdale Capital, who owns shorted shares, said he wasn’t concerned with Friday’s price jump, to $2.45, at the end of regular trading.
“We don’t think Globalstar’s spectrum is commercially viable,” Adrangi told The Post. “We don’t think anything will come of this.”
The head of the $500 million fund said a company like Verizon would have to team with a second company to offer the spectrum or that a tech company would need to buy it.
“Approval doesn’t mean cash flow,” he said.
Globalstar’s billionaire owner, Jay Monroe, who touted the approval by the Federal Communications Commission, has put hundreds of millions of his own money into the business, which plans to roll out a private Wi-Fi channel that will charge consumers for access.
Most Wi-Fi spectrum, which he says is too congested, is free except when accessed through hotels and airports.
In 2013, the company had filed for FCC approval and had long been awaiting an agency decision.
Google told the FCC it should not approve use of the spectrum since Globalstar plans to charge customers.
There is a belief Google is concerned Apple will buy the spectrum and create a private network that does not highlight Google products, a source said.
“This spectrum will increase Wi-Fi capacity worldwide by 30 percent,” Maglan Capital President David Tawil, who is long the stock, told The Post, adding that he believes there is tremendous upside.
FORT MYERS, Fla., May 26, 2016
FORT MYERS, Fla., May 26, 2016 /PRNewswire/ -- Yippy, Inc. (OTCMKTS: YIPI) ("Yippy" or the "Company") has agreed in principle to acquire Michael Cizmar & Associates Ltd. ("MC+A"), a charter Google for Work Partner and winner of Google's 2014 Innovation Partner of the Year Award. Upon completion of the acquisition, MC+A founder Michael Cizmar will join Yippy as a member of its senior management team. Yippy anticipates that the acquisition will be closed by mid-July 2016.
In February 2016, Google announced that it was sunsetting the Google Search Appliance (GSA), the leading product in the search appliance market. The potential result is a significant market dislocation, as thousands of organizations are facing a time-sensitive need to replace the Google Search Appliance. Yippy's planned acquisition of MC+A will place the Company in an excellent position to capture a significant share of the search appliance market, which we estimate to be a $500 million market as of 2016. It is intended that Yippy will sell its EASE 360 Platform and Blue Flame appliance through MC+A, which will operate as a wholly-owned subsidiary of Yippy. In his new role Mr. Cizmar will have primary responsibility for expanding Yippy's relationships with other GSA resellers.
"Yippy's EASE 360 software stack offers a compelling solution for customers seeking a replacement for the Google Search Appliance," said Mr. Cizmar. "Yippy's Blue Flame appliance is not simply 'on par' with the Google Search Appliance, it is a dynamic reinvention of how enterprise search can be delivered with intelligence and analytics at a fraction of the cost."
Richard Granville, Chief Executive Officer of Yippy, stated, "Google's decision to focus its attention on cloud-based solutions has created an opportunity for Yippy to bridge the gap between appliance and cloud. The market for cloud-based plat
Yippy alone can make big money even without the GSAT deal. Great move CEO Rich.
Near $0.6 again. My guess is James Monroe, CEO of GSAT, is buying more, as we were told. Others also mentioned, at IHUB, that they were buying continuing toward $2.00. Lots of news are expecting in this summer. Let's watch the action with a cup of coffee.
That is an inaccurate presentation a financial statement without the footnotes.
1) Total financing from Magna was approx. $850K. The majority of proceeds was used for MuseGlobal software acquisition, Vivisimo upgrades, and associated legal fees.
At no time did Yippy receive millions in financing from any entity. In fact the largest financing deal was attributed in 2011 for the Vivisimo Velocity acquisition which was approx. $900K +/- and that number is included in the financing numbers.
The majority of our financing numbers have come through acquisitions not from direct investment, and it states that clearly in our FS.
As for MC+A - They have about 20 full time employees. Yippy has 10 putting us around 30 people. Comments about MC+A being a one man show are completely inaccurate. The entire Google GSA division had 35 people total at their apex, now it has 8.
Michael Cizmar is one of the foremost authorities for Google products including the GSA. We value very much his relationship with Google, and as stated plan to test on Google cloud as an option for our clients going forward.
Google will not offer GSA type search services in the Google cloud. We have an instance of our software running on Google's platform today. The GSA is out dated and very slow compared to Yippy, hence it is being phased out.
As many people do not know that Google search is a very heavy pig (tech talk). Meaning it takes a lot of resources (servers) to perform tasks. The Achilles heal for the GSA and Google search is that it can only search a maximum of 1000 files deep. This is useless for big data, email discovery, natural language processing, corp governance, or anything that requires deep search of large samples of data.
In contrast, Yippy can search millions of files deep faster than Google can search 1000 in scale. Google is primarily an advertising company, and the software used in the GSA is from 2002.
(More 4 @IHUB)
(Yappy's lawyer's FB)
Yippy To Acquire MC+A
May 26, 2016
John H. Snyder and Thomas C. Sima advised Yippy, Inc. in its acquisition of MC+A, a Chicago-based enterprise search consulting firm.
Yippy, a technology company based in Fort Myers, Florida, sells the Blue Flame search appliance, which is powered by the same technology used by IBM Watson Explorer. By joining forces with MC+A, Yippy has dramatically expanded its ability to compete for a significant share of the enterprise search market.
The Firm congratulates Michael Cizmar, Richard Granville, and everyone at Yippy and MC+A.
Find this event at Yippycom of facebook. EVen without GSAT, YIppy will be an awesome company with MC+A.
Members of the MC+A & Yippy teams will discuss and demo features that make Yippy’s Ease 360 Platform an amazing enterprise solutions for search and eDiscovery.
When: Thursday June 30th 1:00 PM – 2:00 PM CDT
"Welcome to Your Data" TM
Wonder if Yippy could sell the old slogan "Welcome to the cloud," to IBM who used to want to use it.
-In fact, IBM changed it to "To the cloud," after Yippy had claimed its copy right.
Rich for president! What a good timing relief of the comment @ many investors are panicking at uncertainty. No one knows anything now.
FCC Chair Tom Wheeler speaks at The National Press Club - June 20, 2016
(Updated - June 20, 2016 10:12 AM EDT)
FCC will likely issue an order approving GlobalStar's (NYSE: GSAT) TLPS spectrum by June 30, according to Niles Tracy, an analyst at Height Securities. Tracy pointed out that the FCC traditionally announces regulatory orders in the week immediately proceeding or following the commission’s monthly open meeting. This month's open meeting will be held of Friday, June 24th.
Despite several negative reports recently, due to ongoing negotiations and lobbying, Tracy believes believes the order will ultimately be approved.
"The initial 'no' vote from Commissioner Pai came on June 2, 2016. A reported Rosenworcel 'dissent' followed. At the same time, Commissioner Rosenworcel and Commissioner O’ Rielly met with the NCTA, and then other pro-GSAT groups over the following weeks. Commissioner Rosenworcel never confirmed whether she had dissented, or whether she had actually voted, which indicates to us that the 'no' speculation was either a negotiating tactic, or perhaps was unintentional implicationfrom her staff. We continue to believe that this 'dissent' was actually a bargaining tactic, and the Rosenworcel may ultimately approve the order," said Tracy.
The analyst added, "The ongoing ex-parte meetings indicate that both Rosenworcel and O’Rielly are continuing to consider and debate the order. 18 days have past since the original announcement from Commissioner Pai. As the timeline continues to extend, the likelihood that the order is being negotiated increases, and the likelihood of the order being voted down decreases."