hermanbrut

GeoEye-1 Launched Successfully

Agree with Chris. The launch was the big headlines. Final certification and first images sold, when these events happen, may not even make the news. Even though the launch was actually a low risk event, I think many people over-exaggerated the chance of failure due to the mental images we all have of rockets blowing up on the launch pad.

With stocks in today's market it's important to look at possible downside.
Between now and final certification, what might happen to GeoEye to cause the company to lose value?

• The satellite isn't going to fall out of orbit.
• Past accounting problems are now resolved.
• Likely there will be little negative news during the certification process.
• The demand for shares by those who have shorted to hedge their bet on the launch may cause price to rise rapidly over the next month.
• Looking ahead, revenues are expected to grow quickly.
• Any adverse geo-political events will only make GeoEye's services more valuable.

So for the next month or two, I see virtually no chance for GeoEye to lose value.
What's not to like? I think it makes no sense to sell shares now.