GeoEye, Inc. (GEOY)

Allstar13913 (99.80) Submitted: 2/8/2008 3:40:07 PM : Start Price: $32.19 GEOY Score: +11.06

GeoEye is a seller of satellite images to governments worldwide, and has substantial contracts with the U.S. Government.This company is currently undervalued in my opinion because of satellite launch delays that are beyond the companies control. Because of NASA delays, payload launches into orbit have been delayed. I believe GeoEye's newest satellite, GeoEye-1, will not be launched into orbit until at the very earliest, August 2008. The U.S. government has already agreed to buy $197M of GeoEye-1's imagery, in the 18 months after the launch, and is footing $237M of the intial launch costs. With this much government support, I don't believe this company can fail. Because of the high cost of entry into the imagery industry, I believe GeoEye has a substantial moat to work with.