Watching a Satellite Imagery Stock
Since most of my insider-inspired stock picks from late last year are trading nicely, I'm once again casting about for bargains that could pay dividends in the next year. GeoEye (GEOY) has been popping up on my insider screens for months now, but the stock didn't appear to have any near-term catalyst to warrant following insiders into it right away. That is still the rub on this stock, but I've recently pulled the trigger anyway.
GeoEye and rival Digital Globe (DGI) control the $7 billion satellite imagery market, as defined by combining the value of these two firms' long-term contracts. These companies provide high-resolution images to the Department of Defense as well as commercial imagery data for services such as Google (GOOG) maps. Other governments (including a recent deal with Russia) bring in additional revenue to what is largely a fixed-cost business....693 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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