Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES
Road Rules
Road Rules Video Gallery
Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
Text Size
Jul.13
7:39 PM ET
Friday, 13 Jul 2007
Sky-High Profits or Space Junk?

GeoEye isn’t a stock for the faint of heart. It has a tiny market cap of $385 million, the trading volume is thin, and if it doesn’t launch a new satellite by year’s end, the stock could get hammered.

But, of course, that’s why Cramer likes it for speculation Friday.

The upside of GeoEye [GEOY  Loading...      ()   ] is that the demand for satellite and aerial imagery is growing as more and more governments use it to deal with terrorism and environmental issues. Cramer said that governments are outsourcing the work more and more rather than launching their own satellites.

The commercial use of satellite imagery is on the upswing too. Just look at Google [GOOG  Loading...      ()   ] Earth or Microsoft [MSFT  Loading...      ()   ] Virtual Earth.

There’s only one other company of note in the space: Digital Globe. But it’s not public, which means GEOY is the only pure play in satellite imagery.

Click for the rest of tonight's show

The catalyst is the launch of a new satellite. It was supposed to go up early this year but was delayed. If it doesn’t end up launching, GEOY could get hit hard, Cramer said. But if the satellite does make it out of earth’s atmosphere, this $22 stock could rocket to $40.

Bottom Line: GeoEye is not for your IRA, but it’s the definition of a great spec stock, Cramer said.

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?


Tools:
PrintEmailAdd This share icon
  • digg share
ADD COMMENTS
Remaining characters


Current DateTime: 01:26:08 25 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:01:48 25 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 02:05:47 25 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:01:48 25 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters