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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