The Satellite News Financial Ticker

By | July 28, 2003 | Feature

Week of July 18-24, 2003
Percentage Change

Symbol
July 24 Price
One Week
One Month
Three Month
Year to Date
Operators
APT SATELLITE HLDGS ATS
3.05
(17.6)
38.0
160.7
77.3
ASIASAT TELECOM SAT
16.55
(3.0)
(1.5)
18.6
45.3
BRITISH SKY BROADCASTING BSY
45.50
0.6
1.3
5.8
13.6
ECHOSTAR COMM -CL A DISH
36.42
(2.2)
2.3
22.3
63.6
HUGHES ELEC (GM -CL H) GMH
13.65
(1.1)
5.8
19.2
27.6
LORAL SPACE & COMM LOR
0.22
(45.6)
(92.6)
(91.6)
(94.9)
NEWS CORP NWS
30.41
(0.5)
0.9
6.9
15.8
NEW SKIES SATELLITES NSK
5.54
3.2
(5.0)
27.4
33.5
PANAMSAT SPOT
17.20
(5.0)
(8.3)
(0.6)
17.5
PASIFIK SATELIT NUSANTARA PSNRY
0.07
(51.7)
(50.0)
(48.1)
(53.3)
PEGASUS COMMUNICATIONS PGTV
34.16
8.8
25.6
47.2
160.8
rSTAR CORP RSTRC
0.54
(1.8)
8.0
(1.8)
125.0
SES GLOBAL 549343
5.94
5.5
(1.0)
13.1
(7.2)
SIRIUS SATELLITE RADIO SIRI
1.65
(5.2)
(7.3)
111.8
157.8
XM SATELLITE RADIO XMSR
13.15
0.4
31.5
42.9
388.8
Operators’ Average
100.00
(7.7)
(3.5)
22.3
64.7
Manufacturers
ANDREW ANDW
10.10
(8.18)
5.4
45.3
(1.8)
BALL BLL
49.81
9.96
8.8
(11.4)
(2.7)
BOEING BA
32.20
(3.56)
(6.6)
14.4
(2.4)
COM DEV INTL CDV
0.52
6.12
4.0
26.8
(13.3)
EMS TECHNOLOGIES ELMG
15.99
(1.30)
20.6
23.0
2.7
GARMIN GRMN
42.96
2.65
7.6
9.0
46.6
GILAT SAT NETWORKS GILTF
5.16
(9.79)
(3.0)
32.3
(33.8)
GLOBECOM GCOM
4.04
1.00
18.5
34.7
7.7
HARRIS HRS
31.60
6.40
(0.5)
9.5
20.2
HONEYWELL HON
28.27
1.87
4.0
22.9
17.8
KVH KVHI
20.89
(5.30)
6.1
58.3
142.9
LOCKHEED MARTIN LMT
51.55
2.91
6.9
6.0
(10.7)
LUCENT TECHNOLOGIES LU
1.82
8.33
(5.7)
5.8
44.4
MOTOROLA MOT
9.06
(2.89)
(3.3)
8.1
4.7
NERA NERAY
1.57
(3.91)
4.2
62.5
45.2
ORBITAL SCIENCES ORB
8.35
4.90
17.9
46.7
97.9
QUALCOMM QCOM
37.21
(0.29)
3.4
12.8
2.3
RAYTHEON RTN
32.32
(1.61)
(1.2)
6.7
5.1
ROCKWELL COLLINS COL
25.52
(3.08)
6.3
21.2
9.7
SCIENTIFIC-ATLANTA SFA
30.19
16.83
26.2
89.6
154.6
SKY FRAMES SKYU
1.30
4.00
(29.7)
(83.8)
STM WIRELESS STMI
0.01
(60.00)
(51.2)
(97.5)
TITAN TTN
14.40
28.11
43.1
83.0
38.5
TRIMBLE NAVIGATION TRMB
24.27
(4.82)
3.5
12.7
94.3
VIASAT VSAT
14.11
(3.76)
6.6
12.2
22.3
Manufacturers’ Average
100.00
(0.6)
5.7
23.2
20.4
Nasdaq comp
1,701.45
(2.7)
5.6
16.0
27.4
SP 500 sp50
981.60
(1.2)
(0.0)
6.8
11.6
SN Stock Price Average
100.00
(3.3)
2.3
22.9
37.1

Wall Street Analysis

By Tom Watts, SG Cowen Securities

SBC Communications [NYSE: SBC] and EchoStar Communications [Nasdaq: DISH] announced a service bundling agreement last week. It looks like a bundle of joy.

SBC faces stiff competition in its core business. Its residential wireline customers are fleeing to cable, first for cable modem service instead of SBC’s DSL, and second for traditional wireline voice, which cable operators increasingly are rolling out. In San Diego, SBC has lost as many as 10 percent of its residential voice subscribers to Cox Cable [NYSE: COX]. On top of that, SBC and its wireline brethren face the threat of losing their voice business to wireless operators, as more and more of us make all of our calls on our cell phones.

The EchoStar deal throws a lifeline to SBC. The video/DSL/voice bundle offers much greater value than cable. EchoStar already prices comparable video packages 20 percent to 30 percent lower than cable. SBC has begun offering DSL — its DSL by Yahoo service — for only $29.95, compared with $39 to $49 for typical cable modem services. The combined bundle should be a winner, even with the lucrative bundle prices being pushed by cable.

For EchoStar, we view the subscribers coming from SBC almost as gravy. We expect SBC to pick up a portion of the SAC cost in turn for a share of revenue. SBC also will pick up customer service and billing. The arrangement should make the cash flow economics attractive to EchoStar.

The SBC deal should bring in more subscribers to the satellite fold. Many of our competitors expect satellite subscribers to top out at about 25 million. The SBC deal, plus others, should push that equilibrium closer to 30 million subscribers.

And the others? Verizon [NYSE: VZ], BellSouth [NYSE: BLS] and Qwest [NYSE: Q] all look like partner candidates for either EchoStar or DirecTV. Qwest last week announced bundled alliances with both satellite TV companies. Verizon’s Chairman Emeritus Charles Lee is slated to join DirecTV’s board. The ties between the companies could strengthen further.

The next stage of satellite-cable competition is here. Slowly, cable is catching up to satellite’s superior video offering. But we believe satellite still has the edge.

Tom Watts is a managing director and satellite analyst at SG Cowen Securities. He can be reached at 212/278-4260 or tom.watts@sgcowen.com. Readers should assume that SG Cowen Securities Corp. and/or its affiliates intend to offer services in investment banking to the above referenced companies within the next three months, and to seek compensation for such services.

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