China Expert

DigitalGlobe Launches a Successful IPO

How many investors know this company was inherited by Morgan Stanley after the company went Chp 11 and MS was the largest bond holder ? I fail to see the excitement in a business that requires a $500 million investment each few years to replace satellites that have a life span of 5-7 years. I dont care about the barriers to entry, growth in the business etc...all the cash this company generates has to be saved and then spent. Then you have to cross your fingers, buy launch insurance and hope the new satellite does not blow up on the launching pad. Bottom line is that this company never creates "value" for shareholders, it simply creates enough cash simply to fund another satellite. What a terrible business model !