Unmot

GeoEye: It's Make or Break Time

Chris,

Nice work. First of all, Geoeye is only the best in breed if and only if the new bird is launched. Digital Globe has them beat right now. However, they both have their specialities.

Here is what will happen. Earnings and the CC will be OK. However, management will clearly turn their focus to the launch and confirm everything is good to go. This should propel the stock to the 30s. The launch will be successful, so much attention to detail was established throughout the entire 4 year process in building the bird. This launch will rocket the stock to 50 - 65 within a week. I expect the momentum to continue throughout the end of the year with new contracts, bull market for the 2nd half, new institutional investors, amazing earnings, and no UNCERTAINTY. My end of year target is 65 - 80. And my 12 month target is 100 - 120.

My targets are not too high at all. A correct PE ratio of 30 - 40 will put this stock in the 60s by the end of the year. Next year earnings will lower the PE and continue to drive the upward trend. Wall Street has missed this one and will be jumping on to this like crazy; it is human behavior. Note: The volume is still extremely low for this type of stock. First Solar was the same way when it was in the 30s. Look at it now 248.

Chris, Are you shocked at how low it is still trading? Remember, it was at 37 early in the winter, months before the anticipated April or June launch.