GeoEye Looks Good Long-Term

Things will look even better if the company gets a commission from the government.
Author:
Publish date:

Updated from 12:10 p.m. EDT

By Chris Fernandez of PeakStocks.com

The Pentagon and the head of U.S. intelligence signed an agreement on Aug. 15 to buy and jointly manage two imagery satellites, a move that last month John Young, Pentagon acquisition chief, warned was inconsistent with a presidential directive to maximize commercial imagery.

The two commercial satellites would cost about $1.7 billion and would be launched around 2012.

According to a

Reuters

news report, the satellites, launch vehicles and associated ground-based command and control equipment would be purchased by the National Reconnaissance Office, or NRO, using military intelligence funds.

So what does this mean for

GeoEye

(GEOY)

and its only U.S. rival,

DigitalGlobe

?

GeoEye provides space-based and aerial imagery and geospatial information through high-resolution and low-resolution imagery, imagery-derived products and image processing services to customers worldwide. This capability benefits a broad array of industries, including national defense and intelligence, online mapping, state and local governments, environmental monitoring and land use management, oil and gas, utilities, disaster management and insurance.

So how will the government's entrance into the commercial satellite imagery space impact this already nascent field?

To read more, please click here.

This article was written by a member of the Stockpickr community. Stock recommendations and comments presented on Stockpickr.com are solely those of the members quoted. They do not represent the opinions of Stockpickr.com on whether to buy, sell or hold shares of a particular stock. Members should be cautious about any and all stock recommendations and should consider the source of any advice on stock selection. Various factors, including personal or corporate ownership, may influence or factor into a member's stock analysis or opinion. All members are advised to conduct their own independent research into individual stocks before making a purchase decision. In addition, investors are advised that past stock performance or portfolio performance is no guarantee of future price appreciation or performance. Furthermore, Stockpickr.com does not guarantee the accuracy or completeness of information on the site, nor does Stockpickr.com assume any liability for any loss that may result from reliance by any person upon any such information or recommendations. Such information recommendations are for general information only.