Sept 22, 2010 - Cerberus purchased another 770,000 shares of satellite imaging company
GeoEye (NASDAQ:GEOY). In transactions spanning from September 28th to October 12th, Cerberus purchased $31.4 million worth of the company at an average cost of $40.78, pushing its total ownership to 6,631,172 shares a 21% stake.[2]
So what exactly has the billionaire
Feinberg going all in, particularly at a time when the stock is already richly priced at 25x earnings?
Something is brewing. The company is suddenly moving its headquarters to Herndon, to a corporate office within a mile of the Dulles International Airport. Its adding 100 more jobs, a near 20% increase in its head count.
Recent activities surrounding GeoEye suggest that insiders are preparing either for a buyout or a new threshold of commercial success, as the niche play of geospatial imaging goes global and ubiquitous.
The satellite imaging company, best known for its Google Maps imagery, certainly has seen its top-line gallop. Sales enjoy a five year growth rate of 54%, versus 8.95% for the defense industry as a whole. At a time when few companies saw robust top-line growth, GeoEye saw revenue jump 84% from fiscal 2008 to 2009.[3] Two quarters into fiscal 2010, TTM sales are $315 million, vis a vis $271 million for fiscal 2009.
Its recent quarter --ending June 30-- was solid. GeoEye saw an 11.4% year-over-year revenue increase and an operating income that was 30% of revenues. Its adjusted EBITDA margin was 52.3% for the quarter.
http://seekingalpha.com/article/230525-geoeye-insiders-prep-for-mega-growth
http://www.reuters.com/article/geoeye-idUSSGE62A0IP20100311