This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
GeoEye(GEOY) is another big purchase by a major shareholder that has yet to pay off. Cerberus Capital has been steadily building an ever-larger position in satellite imaging provider GeoEye, which is one of two companies that provide high-resolution intelligence data for the U.S. and other governments.
Shares have taken a recent hit as budgetary pressures may make it hard for GeoEye to partake in a new advanced imaging project, known as Enhanced View. Even after those concerns have circulated, Cerberus has continued buying stock, averaging down at ever-lower levels.
Paradoxically, if the U.S. government chooses to diminish its relationship with GeoEye, it could help the company snag an increasing level of foreign business, as it would no longer be seen as a captive U.S. client. At least that's what Cerberus is likely hoping will happen.
GeoEye was also featured recently in "
5 Stocks Ready to Soar on Bullish Earnings."