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  "documentTitle": "Maxar Technologies (MAXR)",
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  "authorName": "Ben Axler",
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  "notes": "Uses a scatter plot to show price vs resolution and a line chart to show declining cost trends over time.",
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      "text": "Thus, we think that with the next round of negotiations, the NGA seems more likely to want a price discount rather than accept a price increase.",
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      "text": "Medium Resolution Optical Data Cost",
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      "text": "Satellite Imaging Prices: Resolution v Pricing per Km²",
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      "text": "satellite imaging pricing: $36",
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      "text": "WorldViews 1-3 offer resolutions of about 30-50 cm in black and white and about 124-164 cm in color. Many bulls believe that this price is \"low\" without offering much comparable data to justify their view. So we investigated through our research network to source current market pricing for satellite imaging at different resolutions. Below is the summary and suggests that at resolutions of around 50 cm, the price should be about $25/km²:",
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      "text": "However, this is a price for a \"useful image\" – say a military base in Syria is useful to the U.S. government, while a picture of farmland in North Dakota is not useful. But most of the data that DGI captures in a given year is not useful. Working further within our network, we were told that on average only 3-4% of images that observation satellites collect are \"useful\". Furthermore, as we can see in the below chart from NSR, there is a close to 9x difference between priority images (as in \"we need to know that is happening at a given Syrian military base right now\") and archive (\"we want to know what happened in the Syrian base last month\"). While we don't have split for NGA's EnhancedView SLA between priority and archive, we believe a 50/50 split is a good rule of thumb. Adjusting for these factors, we see that DGI is charging $337 million / (622 mn km2 * 3% * 50%) = $36 per useful image, close to 50% premium to market rates. In addition, our industry research suggests that for deals such as DGI's with NGA, bulk discounts of around 75% are the norm, which makes DGI look even more expensive. Thus, we think that with the next round of negotiations, the NGA seems more likely to want a price discount rather than accept a price increase. Furthermore, we can also see in the NSR chart that the prices per pixels have been going down and the industry expects them to continue going down - not up. As the U.S. government represents 66% of DGI's revenue, any price reductions would obviously have a material impact on DGI's earnings.",
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      "text": "Source: NSR",
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      "text": "Source: Industry research",
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      "text": "Significant Downside To DigitalGlobe (Cont'd)",
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