orbital cited as one of five local stocks to watch in '99. the others include AOL, PSINet, Fannie Mae/Freddie Mac, and Washington REIT.
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Stocks: What Goes Up
By Jerry Knight
Washington Post Staff Writer
Monday, December 28, 1998; Page F15
Orbital Sciences Corp. of Dulles is known primarily for making rockets for launching small satellites, but its other businesses make it the space stock to watch for 1999.
Orbital was picked last month as one of the 15 stocks in the "Collective Wisdom Portfolio" selected by Merrill Lynch. Satellite launching is two-thirds of Orbital's business, producing sufficient profit to justify a stock price of about $35 to $40, Merrill's analysts said, but it could be at $55 when factoring in the value of the company's other parts.
Orbcomm, a satellite communications venture, went into operation last month. Expected to have 250,000 users by the end of next year, Orbcomm is projected to generate profits by 2000. Orbimage, a pictures-from-space subsidiary, has a $300 million backlog of business serving commercial and government clients.
Orbital's Magellan division, one of the biggest makers of global-positioning satellite receivers, is finally expected to make money in 1999 after years of losses. About to become a breakthrough consumer product, the receivers have been embraced by pleasure boaters who can buy a $500 device that ensures they won't get lost or run aground. Next comes the auto market, where on-board navigation systems are expected to become as affordable as those used by boaters.
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