NEW YORK (TheStreet) -- Shares of Globalstar Inc. (GSAT) are down -2.22% to $3.96 after it disclosed in an SEC filing that it's proposing to sell $9.9 million worth of shares on behalf of Hughes Network Systems, a subsidiary of EchoStar Corporation (SATS)
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In August 2013, Globalstar entered into an agreement with Hughes Network Systems which allowed Hughes, at their sole option, to elect to receive shares of the company's voting common stock in lieu of cash related to certain milestone payments under Globalstar's 2008 contract with Hughes for ground network equipment and software upgrades and satellite interface chips.
Separately, TheStreet Ratings team rates GLOBALSTAR INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate GLOBALSTAR INC (GSAT) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and feeble growth in its earnings per share."