Wednesday, September 11, 2013

Seeking Alpha: Can Orbital Sciences Be More Than Just A Good Idea?

If you want to be uncharitable, you could say that Orbital Sciences (ORB) is a company with a great future in its past. Going beyond the "gee whiz" factor of a company that builds launch vehicles and space systems, this is a company that has shown generally solid progress in revenue growth over the years but has struggled to show consistent free cash flow production or stock price appreciation.

Orbital could be looking at a period where results turn up, though. The commercial satellite business should benefit from a cyclical upswing in orders, and the company's participation in NASA programs tied to the International Space Station (ISS) should begin to pay off in the coming five years. Underlying that is a relatively stable business built around missile defense and military and research satellites. There will always be risks tied to government budgeting priorities and spectacular operating failures, but I can sympathize with investors taking a "it's different this time" approach to Orbital Sciences.

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Can Orbital Sciences Be More Than Just A Good Idea?

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