Technical Analysis of GeoEye

By Chris Fernandez | November 20th, 2008 at 2:01 pm | (1) comment
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Every now and then I like to give guest authors a chance to share their views either on the stocks that I already cover, or names that I don’t, but that I feel would benefit my readers.

Some of these author’s viewpoints agree with mine, and some don’t.

I feel that the more information you have about a particular company, stock or the market in general, the better decisions you can make regarding your investments and what actions you should take in regards to those investments.

Today’s guest author is Jonathan Keim, he runs a blog called BreakoutInvestments.com, a site that is devoted to the often misunderstood art of technical analysis.

I often don’t agree with technical analysis as it goes against one of my primary investing tenets: That of long term investing because of solid fundamentals that are yet to be reflected in the price of the company in question.

Now, while I don’t try and time the market, I often do buy positions in the stocks I recommend in 1/4 position increments and cost-average.

That being said, I feel that it could be helpful to look at some charts and statistics associated with volume, moving averages and sentiment to try and find a price that is more beneficial to us as investors when I was going to buy more of the stock anyway.

I feel it gives us another dimension of information to make a better decision.

Does this mean that I won’t buy if the “charts” say not to? Nope, not at all.

On the flip side, does it mean that I will buy even if the “charts” scream not to? Yep, you betcha.

My timing is related in direct proportion to the stock’s underlying fundamentals relative to its stock price, with an eye on catalysts that should provide the boost in price and justify a purchase.

At any rate, I wanted to share Jonathan’s take on my top recommendation GeoEye, Inc. (NASDAQ: GEOY), and give you another perspective on how chartists would look at this company, in relation to how I would look at it.

The bottom line? Jonathan “agrees” with me in the sense that GeoEye under $18.00 represents an absolute steal of a price, assuming all underlying fundamentals remain intact (that’s my analysis on top of his).

Either way, enjoy a break from my usual rhetoric and take a look at GeoEye from a totally different perspective.

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(1) comment to “Technical Analysis of GeoEye”

  1. Mona Lisa Moon Says:

    The links to the relative Strength Index and MACD were helpful so I appreciate it! And recalling the launching of the satellite back several weeks ago it was also interesting to see the shift evident in the stock chart for GeoEye so another thanks for that as well.

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