What happened Shares of satellite communications company Globalstar (NYSEMKT: GSAT) crashed 21% yesterday after it became apparent that Apple's (NASDAQ: AAPL) new iPhone 13 will in fact not enable users to call each other via satellite. That means Apple won't be paying Globalstar for satellite bandwidth on these not-sat phones -- which explains why investors dropped Globalstar stock like a radioactive hunk of satellite junk yesterday. But what explains the fact that Globalstar stock is back up 4.4% today (as of 1:30 p.m. EDT)? Image source: Getty Images. So what In the absence of any actual "good" news to explain the stock's bounce higher, I can only surmise that what we're looking at today is a "dead cat bounce." Here's how the reasoning goes: Despite widespread rumors that Apple's iPhone 13 would be a sat-phone, not everyone would have believed those rumors. Some would have bet that the rumors would prove false. The way they would have placed that bet would have been by shorting Globalstar stock (i.e., selling stock they did not own, in hopes of buying it back later, cheaper, and returning the shares to their rightful owners). When the rumors in fact did prove false, and Globalstar stock fell, it was time to start closing out short bets. This, in a nutshell, is what we're seeing happen today. Short sellers are covering their shorts, buying back the stock, and causing the price to rise a bit. Now what But it won't last. In the absence of real good news for Globalstar -- a catalyst such as the Apple rumor -- all that investors in Globalstar own today is a heavily indebted, money-losing, satellite stock that sells for more than 26 times its unprofitable sales. Eventually, investors are going to figure out that this isn't the best kind of stock to own, they will sell their shares, and Globalstar -- up today -- will go right back down again. 10 stocks we like better than GlobalstarWhen our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Globalstar wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.Source