A rare IPO… this ain’t 2006 anymore, where everyone with an idea was going public. Anyway, what’s there to know about Digital Globe? Well, three things:
1) they provide images to Google Earth and Microsoft’s Virtual Earth… two relatively under the radar ground-breaking technologies. It’s the kind of technology that 20 years from now will be the standard in some kind of important area in life, kind of like how 20 years ago no one had a cellphone.
2) Digital Globe (DGI) and GeoEye (GEOY) are the only two companies that own this commercial type satellites. So basically, it’s a duopoly. We’re all still waiting for Google to make this stuff profitable… probably when they start moving R&D away from social networking projects and start investing in these more complex imaging/virtual projects. Anyone else think 1984 was a good book?
3) Like GEOY, DGI will take on a dramatic road. This past Tuesday, GEOY’s stock dropped over -20% at one point after news that some of its images were not taking color shots. Did you see that massive volume attack on that selloff?! Picky picky. Investors are real picky. [oh yeah, here’s the original scoop on GEOY]… isn’t it interesting that that news would be leaked 2 DAYS BEFORE Digital Globe’s ipo? Hmmmm. DGI is playing hardball, in my conspiracy driven opinion. Well, like I said, DGI can’t escape the drama either- basically any money poured into DGI this summer will be on pure speculation… let’s see, they have 2 satellites in orbit, and this fall (!) they are sending another one up there since one of the two is about to stop working. In other words, this satellite must launch. A simple delay in this launch will punch investors in the scrotum. If it does launch, then so will the stock.
Yeah, so here we go GEOY and DGI. It’s nice to invest in duopolies, like Coke vs Pepsi, and monopolies like NetFlix, so this one should be interesting- I mean, since we are already nationalizing everything, I think it’s a good time to bet against privacy… GO SATELLITES GO!
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I think you mentioned this before, but when is the DGI IPO again?
You’re right about this GIO, these remotely sensed / satellite data systems are certainly the way of the future. The information is of high value, and before too long will be of even higher demand.
I’ve done a lot of work in the cartographic arena… this stuff is nearly priceless.
HaHa, whoops! IPO today. That’s what I thought you said earlier this week, but I just didn’t see it at first.
I too find it interesting about the timing of the announcement of the GeoEye camera problem.
You made an important point about the satellite needing to launch. I bought into GeoEye only after it got on orbit and checked out. Way too much risk if you invest before and you lock up your money in hopes of everything going right. Schedules on these projects always slip! Launch dates are always optimistic. You only have to look at the GeoEye program to see those issues.
If you have patience and are long, I believe it to be a good investment. Just know it can be a rough ride with each delay/issue.
Cheers!