We have a couple of interesting developments with PeakStocks.com portfolio recommendation GeoEye, Inc. (Nasdaq: GEOY), a provider of space-based and aerial imagery and geospatial information.

The first bit of news is that GeoEye just nabbed a new contract with the National Geospatial-Intelligence Agency or NGA, to supply geospatial products and related service above and beyond their current backlog and orders pertaining to the GeoEye-1 launch.

GeoEye also reiterated their launch plans for GeoEye-1

The second bit of news comes as a bit of a surprise to many investors: GeoEye’s imagery can now be found on Google maps.

New to the GeoEye story?

• Read my initial buy recommendation here.
• or read about the company’s latest management conference call and earnings release here.

GeoEye to Supply Additional Imagery to NGA

On Wednesday June 4th, GeoEye announced new awards totaling $22 million to supply geospatial products and related services to the National Geospatial-Intelligence Agency (NGA).

These products and services include a significant amount of value-added, imagery-based geospatial-intelligence products including the company’s airport mapping product line.

I contacted management and they confirmed that this imagery will be delivered most likely within the next 12 months, so while this won’t vastly improve GeoEye’s finances in the upcoming quarter, it will add incremental revenue that will allow GeoEye to really execute their business strategy towards revenue diversification.

These products aren’t just straight mapping or imagery products but digitally enhanced and processed imagery that is custom made for NGA’s needs and falls under the “products and services” offerings that further diversifies GeoEye’s revenues away from straight non-processed imagery.

This order from the NGA is in addition to the previously reported backlog that NGA has instituted in anticipation of the launch of GeoEye’s next generation satellite, GeoEye-1.

Imagery processing and production will be performed at GeoEye’s advanced imagery processing centers located in St. Louis, Missouri and Thornton, Colorado.

GeoEye-1

Last month, GeoEye announced an August 22, 2008 launch date for its next-generation, earth-imaging satellite GeoEye-1.

Once launched, GeoEye-1 will be the world’s highest resolution commercial earth-imaging satellite.

In the same press release as the NGA contract, GeoEye also mentioned that the first stage of the United Launch Alliance Delta II launch vehicle has already arrived at Vandenberg Air Force Base in California in preparation for the launch of GeoEye-1.

It looks like things are running smoothly and on time for the successful launch of GeoEye-1

GeoEye’s Images Now on Google

Those with a keen eye for detail have probably noticed that GeoEye’s images are now appearing on Google (Nasdaq: GOOG) these days.

Here’s a screenshot from a search I was running the other day:

Screenshot of Google Maps now showing GeoEye as an image provider.

Notice the little copyright at the bottom of the image with DigitalGlobe (NYSE: DGI), GeoEye’s only US competitor, and GeoEye.

On the last conference call with analysts, management talked about how they were being approached by online websites and portals (they would never name which ones), and that many of these sites were looking to expand their mapping capabilities and stay upgraded with the most recent imagery available.

It’s now clear that Google is one of these portals.

On the same token, once GeoEye launches their next generation satellite, GeoEye-1, it will be the highest resolution satellite available today, and thus will garner a larger market share in this competitive online marketplace, and will eat DigitalGlobe’s lunch when it comes to the online segment that is always looking to get the latest and greatest to stay ahead of the competition.

One other quick note:

Over the last month or so, insiders at GeoEye have purchased 5,000 shares of the company’s stock on the open market, at prices ranging from $16.85-18.94 per share.

1,000 shares were purchased each by the CEO Matthew O’Connell, and CFO Henry Dubois, with the remainder of the shares being purchased by 2 other officers/board members: Mark Brender and Michael F. Horn Sr.

Now, while this really isn’t what I would call convicted buying, it is something.

Let’s put it this way, I would much rather see insider buying than no insider buying, and of course, insider selling.

Bottom Line

We have some nice developments at GeoEye as the company and management team continues to execute their strategy of delivering more value-added services to their clients, and attempt to diversify their revenue stream.

In addition, the continued support of the NGA as well as continued acceptance and penetration of GeoEye’s products and services into the online community further differentiates them from their competitor DigitalGlobe, and secures their place as the top dog in this industry.

Once GeoEye-1 launches, we’ll see these initiatives further propel GeoEye in the latter half of 2008 and especially in 2009.

The recent insider buying, as well as market overreaction and misinterpretation of GeoEye’s last quarterly analyst conference call and earnings release, are clear signals that now is the time to buy GeoEye and start your position for the long term.

Consider this: GeoEye’s market cap is LESS than the total cost of GeoEye-1!

In other words, if you bought every single share of GeoEye right now, you would essentially be getting their entire business for FREE!

I’ll be detailing other valuation metrics in my upcoming research report, but suffice it to say, you aren’t going to be getting GeoEye for any cheaper than it is today for too much longer.

Upcoming catalysts, including the launch of GeoEye-1 as well as the upcoming IPO of GeoEye’s only US competitor DigitalGlobe, and GeoEye’s management team’s continued execution and diversification of the business, make this a critical juncture for investment in GeoEye for new and old investors alike.

Stop waiting on the sidelines, and start a position immediately.

Once GeoEye’s new bird launches, the stock will fly away.

New to the GeoEye story?

• Read my initial buy recommendation here.
• or read about the company’s latest management conference call and earnings release here.

*Variables You Should Know About GeoEye, Inc. (Nasdaq: GEOY)

BUY

• Established Large Player/Customer Base

• Consistent Revenue Streams

• High Margin Business
  

• Fantastic Growth Potential in an Expanding and Rapidly Developing Market

• Downside Protection In Recessionary Climate

• Several Upcoming Positive Catalysts Should Bring Attention to the Sector and Company
  

• Fantastic Stock Price Valuation/Entry Point
  

• Largely Underfollowed Stock (Only 1 Analyst)

• Well Capitalized for the Next 12 Months or More

*As of 6-6-08. Except share price, all values in millions.