Globalstar (GSAT) Stock Plunges 17%: What’s The Reason For The Pullback?

Based on the weekly statistics, the stock has traded at a high price for 3 days. On Wednesday, it cost the same as on Thursday, $ 2.7. On September 10, the price popped to $2.76, thereby breaking the weekly record. However, on Monday, the indicators changed sharply and collapsed, namely, fell by 20%. After a sharp drop, there were no significant changes, so the current price is only $ 2.24.
Globalstar is a leading provider of satellite solutions for businesses and individuals. Its shares lost significant ground. This pullback can be somehow connected with the recently proposed tax increases by Democrats in the House of Representatives. On Monday they proposed a series of tax increases, including the proposal to raise the tax on capital gains to 25%, from the current maximum of 20%. Taking into account the possibility of raising taxes on the horizon, investors who have achieved great success with Globalstar shares could add an incentive to sell their positions before the changes take effect.

Robert McDowney

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