DigitalGlobe IPO in May Should Help GEOY

A reader pointed out to me that GEOY's duopolistic partner DigitalGlobe (DGI) finally announced last week that it will go public in mid-May.

DGI filed its S-1 to go public a year ago, but it hasn't been able to because of the general markets. It will be only the 5th IPO this year.

DGI's IPO is a positive for GEOY and -- I don't believe -- is yet reflected in the GEOY stock price. GeoEye has done a poor job communicating its strong story but, as a small company, it's been at a disadvantage getting people to pay attention. With increased analyst coverage, as we see today, plus future earnings calls and DGI's IPO in a couple of weeks, there will be a lot more attention given to this industry of satellite imagery and GEOY.

I bought some June out-of-the-money calls this morning, as I expect the good news of May to be reflected in the stock.

Position: Long GEOY