GeoEye (GEOY) Staffing Up
5/7/2009 3:18 PM EDT
GeoEye (GEOY) just announced it will be hiring 12 people in their production facility in St. Louis, which is responsible for professional services relating to the satellite images they take for their government and commercial customers. They've also increased the physical space at this location to do this.
It's always a bullish sign for a stock price to see staffing increase -- especially in today's environment. It speaks to their confidence in future earnings.
In the case of GEOY, their new GeoEye-1 satellite is now collecting images and generating revenues. We should start to hear about how this is translating into earnings on next Tuesday's Q1 earnings call for the company.
As I've also noted here before, next Thursday will be the IPO for GEOY's top competitor: DigitalGlobe (DGI). This IPO should actually be a good thing for GEOY, as it will provide the first true apples-to-apples public comp for the company.
Position: Long GEOY
Originally published in RealMoney.com
