NEW YORK (TheStreet) -- Shares of Globalstar (GSAT) were rising in after-hours trading on Tuesday as the Covington, LA-based mobile satellite company announced a strategic agreement with Carmanah Technologies.
Carmanah, a Canadian renewable technologies company, will collaborate with Globalstar to design and manufacture new solar-powered machine-to-machine (M2M) devices for the company, according to a statement.
Carmanah's products will also use the Globalstar low earth orbiting satellite constellation to connect remotely.
The deal includes a multi-year supply agreement in which Carmanah will generate the next generation of Globalstar products to incorporate solar power charging features.
"When available, our new solar powered devices will support larger and more frequent data transmission capability and, most importantly, have a much longer field life than our current devices," Globalstar COO Dave Kagan said in a statement.
The first products are expected to be ready for market in mid-2017.
About 9.14 million of Globalstar's shares traded on Tuesday vs. its 30-day average of 2.8 million shares per day.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D+ on Globalstar.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: GSAT