GeoEye, Inc. (NASDAQ:GEOY.DL)

CAPS Rating: No stars

The Company with its subsidiaries is a provider of global space-based imagery of Earth.

Recs

5
Player Avatar fmahnke (95.32) Submitted: 4/9/2009 11:42:35 AM : Underperform Start Price: $24.50 GEOY.DL Score: +6.40

As an admitted stock market junkie, I've been following the exploits of Geoy for a couple of years and find it to
be one of the most interesting stocks in the market, Universally loved by CAPS Allstars, the community at
large, the MF and VAD V (who is one of the few analyst I respect) this stock has not lost any ground over the past year
despite the downturn in in the market. What's not to like ?, sexy high tech business with gov't contracts and Google
deal insider buying and high barriers to entry. I took a short position in this stock for the following reasons.

A forward PE is now in the high 30's which far exceeds their historical and short-term growth rate or the expected
life of the earnings stream in an ever changing technological environment.

Increased competition from Digital Globe, which will soon have the most advanced bird in the sky.

Insider buying has occurred in the upper teens while the largest single transaction was a sale at 23

I believe that the commercialization of this business is at risk, besides the fact that I don't like the idea
of someone looking in my backyard from outer space, I do know what terrorisum means even if I can't spell it'

Geoy has management issues, consistently restating financials, miscalculating tax liabilities and delays in
filing financials, Now they have a new auditor and will soon have a new CFO, if they finally do get it right,
it is almost will cost more.

And finally, a few words from our President on Geoy's margins, " and we are going to continue to find ways
to get the resources we need without fattening the wallets of defense contractors"

I hate being on the same side of any trade with Jim Cramer (although since he is now 70% down on his call I
do feel a bit better), Anyway, its time t take profits geoy so that I can earn some.

Member Avatar dmitty08 (< 20) Submitted: 5/5/2012 12:06:00 AM
Recs: 0

If GeoEye swallows up Digital Globe as unsolicited takeover rumors are swirling, foes that fortify GeoEye with market share and innovation, or does it just bolster DGI's share price?

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