A new application that vastly broadens cellphone coverage and an acquisition that enhances a telecommunication's company's ability to offer its customers the latest cellphones and hand-held devices helped to boost the stock volume of yesterday's most active stocks.
Solution for Mobile Coverage Beyond Cellular Range
Globalstar, Inc. (OTCQB: GSAT) share volume skyrocketed on Feb. 3, 2014, with 13,840,549 changing hands, more than four times its three-month average of 3,738,123 shares.
The sudden volume uptick of the Covington, La.-based provider of mobile satellite services' stock could in part be tied to the unveiling of its new voice and data solution on Jan. 29.
The new product provides seamless integration between any Wi-Fi enabled device (i.e., smartphones, tablets, laptops, etc.) and Globalstar's network of satellites. With the new application called Sat-Fi, Globalstar customers can now use their existing smartphones and existing phone numbers to send and receive communications over the Globalstar's satellite network, offering seamless voice and data connectivity when beyond the range of cellular. This new technology means that people who find themselves outside of cell coverage, for whatever reason, can use their existing smartphones or computers to always stay connected.
Expands Globalstar’s Potential Market
The new application could be a game changer for Globalstar in that it immediately expands its market to the following segments
- Emergency responders and those impacted by natural or man-made disasters where cell coverage often becomes unavailable, which was experienced during Hurricanes Katrina and Sandy, recent tornado outbreaks and the Northeast blackout of 2003
Recreational or commercial boat owners and enthusiasts, and their passengers, who need to be able to make calls, send emails and communicate via SMS text messages over satellite while maintaining the capabilities and flexibility of their existing smartphones and computers
- Oil and Gas and other natural resources industries who rely on constant, cost-effective connectivity for work productivity and peace of mind - Temporary industrial worksites that rely on simple, constant voice and data connectivity within a portable office environment - Avid outdoor recreationalists, such as hunters, hikers and campers who need assurance when traveling on or off the grid
Shares of GSAT closed at $2.33 on Feb. 3, up 30 cents from $2.03, the previous day's close.
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Brightstar Acquisition Completed
Tokyo-Based SoftBank Corp. (OTCPINK: SFTBY) stock volume also soared Feb. 3, trading 831,821 shares, more than three times its three-month average of 262,084 shares.
The volume surge could in part be the result of the telecommunication company's Jan. 30 announcement that it had completed its acquisition of U.S.-based Brightstar Corp, a distributer of mobile devices in the following rather complex transaction:
"In the transaction, SoftBank invested a total of USD 1.26 billion into certain U.S. subsidiaries. Such U.S. subsidiaries will purchase 100% of the shares of Brightstar for approximately USD 1.105 billion cash consideration, and U.S. subsidiary," the original Oct. 19, 2013 release explained.
"As a result of the Transaction, SoftBank will indirectly own approximately 57% of the voting power, and common stock, of the shares of a U.S. subsidiary that will own 100% of Brightstar, making Brightstar a subsidiary of SoftBank. Furthermore, SoftBank plans to gradually exercise the Warrant to increase its ownership in the U.S. subsidiary to approximately 70% of the voting power, and common stock, over the five year period," it added.
The bottom line for SoftBank is that the acquisition gives it much more capability to deliver and trade in the latest mobile and handheld devices to its customers, thus keeping them over the long term.
Shares of SFTBY closed at $33.86 on Feb. 3, down $2.44 from $36.30, the previous day's close.
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2013 Good Year for Multifamily Loans
Although not in the telecommunication's sector, Fannie Mae (OTC Bulletin Board: FNMA) shares also experienced robust stock volume on Feb 3, with 10,486,611 shares changing hands.
On Feb 3, 2014 Fannie Mae announced that it and its lenders financed $28.8 billion in multifamily loans in 2013.
Working with its lender partners to finance 507,000 units of multifamily housing, about 99 percent, or $28.5 billion of the loans that Fannie Mae financed in 2013 were delivered through MBS execution. Fannie Mae met the Federal Housing Finance Agency's goal to reduce multifamily volumes by 10 percent relative to 2012 levels, achieving 95 percent of its total volume capacity.
"The need for quality, affordable rental housing is greater today than it's ever been, and we will continue to do our part by providing liquidity, stability and affordability to the multifamily market and maintaining our credit standards," Senior Fannie Mae Senior Vice President Jeffery Hayward said, in a written statement.
This is just the latest piece of positive news about the government-sponsored enterprise, charged with stabilizing the secondary mortgage market in the last few days.
On Jan. 29, Judge James Peck approved Lehman Brothers Holdings Inc.'s settlement with Fannie Mae over $18.9 billion in mortgage claims. Under the settlement, Fannie Mae will receive a general unsecured claim of $2.15 billion against Lehman. Under Lehman's Chapter 11 payment plan, this amounts to a recovery of about 25 cents on the dollar, or about $537.5 million.
In addition, Fannie Mae and others’ optimistic outlook for the 2014 housing market is fueling its spike in volume. In a Jan. 13 statement, Fannie Mae's Chief Economist Doug Duncan said that despite the rise in mortgage rates since the spring, many housing indicators posted strong gains at the end of 2013 and consumer housing attitudes are strengthening, "all of which bodes well for continued but measured housing recovery in 2014."
In addition, Fannie Mae's sister company Freddie Mac (FMCC), is planning to sell $1 billion of securities tied to the risk of homeowner defaults, almost matching the amount issued since the deals began last year. This is according to a person with knowledge of the transaction.
FNMA shares closed at $3.08 down 5 cents from its closing price of $3.13 the previous day.
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