The Satellite News Financial Ticker
Week of July 25-31, 2003
|
Percentage Change
|
|||||
|
Symbol
|
July 31 Price
|
One Week
|
One Month
|
Three Month
|
Year to Date
|
Operators
|
||||||
APT SATELLITE HLDGS | ATS |
3.14
|
6.4
|
30.3
|
155.3
|
82.6
|
ASIASAT TELECOM | SAT |
16.70
|
(0.6)
|
3.3
|
15.6
|
46.6
|
BRITISH SKY BROADCASTING | BSY |
46.05
|
0.7
|
2.1
|
9.4
|
15.0
|
ECHOSTAR COMM -CL A | DISH |
36.27
|
1.2
|
4.8
|
21.1
|
62.9
|
HUGHES ELEC (GM -CL H) | GMH |
13.73
|
2.7
|
7.2
|
16.4
|
28.3
|
LORAL SPACE & COMM | LOR |
0.22
|
–
|
(92.9)
|
(91.9)
|
(94.9)
|
NEWS CORP | NWS |
30.41
|
0.2
|
0.5
|
7.5
|
15.8
|
NEW SKIES SATELLITES | NSK |
5.66
|
4.2
|
2.7
|
16.7
|
36.4
|
PANAMSAT | SPOT |
17.41
|
(0.6)
|
(5.5)
|
0.6
|
18.9
|
PASIFIK SATELIT NUSANTARA | PSNRY |
0.16
|
121.4
|
10.7
|
181.8
|
3.3
|
PEGASUS COMMUNICATIONS | PGTV |
35.79
|
6.0
|
22.7
|
32.8
|
173.2
|
rSTAR CORP | RSTRC |
0.56
|
9.8
|
1.8
|
2.2
|
133.3
|
SES GLOBAL | SES.LU |
6.03
|
4.1
|
6.7
|
14.9
|
(5.8)
|
SIRIUS SATELLITE RADIO | SIRI |
1.78
|
9.2
|
5.3
|
140.5
|
178.1
|
XM SATELLITE RADIO | XMSR |
13.77
|
8.8
|
25.3
|
42.0
|
411.9
|
Operators’ Average |
100.00
|
11.6
|
1.7
|
37.6
|
73.7
|
|
Manufacturers
|
||||||
ANDREW | ANDW |
10.90
|
8.0
|
16.7
|
42.1
|
6.0
|
BALL | BLL |
49.70
|
2.3
|
9.2
|
(11.5)
|
(2.9)
|
BOEING | BA |
33.12
|
1.3
|
(3.5)
|
21.4
|
0.4
|
COM DEV INTL | CDV |
0.53
|
12.8
|
1.9
|
55.9
|
(11.7)
|
EMS TECHNOLOGIES | ELMG |
17.20
|
9.6
|
27.5
|
41.9
|
10.5
|
GARMEN LTD. | GRMN |
38.29
|
(8.8)
|
(4.0)
|
(9.7)
|
30.7
|
GILAT SAT NETWORKS | GILTF |
4.85
|
(4.5)
|
(4.7)
|
41.4
|
(37.8)
|
GLOBECOM | GCOM |
3.90
|
(6.0)
|
20.0
|
26.2
|
4.0
|
HARRIS | HRS |
32.37
|
4.7
|
7.7
|
13.3
|
23.1
|
HONEYWELL | HON |
28.28
|
(0.5)
|
5.3
|
19.8
|
17.8
|
KVH | KVHI |
20.09
|
0.1
|
(18.4)
|
33.0
|
133.6
|
LOCKHEED MARTIN | LMT |
52.34
|
(1.9)
|
10.0
|
4.6
|
(9.4)
|
LUCENT TECHNOLOGIES | LU |
1.75
|
(2.8)
|
(13.8)
|
(2.8)
|
38.9
|
MOTOROLA | MOT |
9.04
|
(1.1)
|
(4.1)
|
14.3
|
4.5
|
NERA | NERAY |
1.99
|
26.3
|
42.0
|
66.1
|
83.5
|
ORBITAL SCIENCES | ORB |
8.23
|
1.6
|
12.7
|
47.5
|
95.0
|
QUALCOMM | QCOM |
37.48
|
3.4
|
4.3
|
17.6
|
3.0
|
RAYTHEON | RTN |
30.70
|
(8.5)
|
(6.5)
|
2.6
|
(0.2)
|
ROCKWELL COLLINS | COL |
26.03
|
2.1
|
5.7
|
21.7
|
11.9
|
SCIENTIFIC-ATLANTA | SFA |
30.29
|
0.5
|
27.1
|
86.4
|
155.4
|
SKY FRAMES | SKYU |
1.10
|
(15.4)
|
(18.5)
|
(12.0)
|
(86.3)
|
STM WIRELESS | STMI |
0.01
|
(60.0)
|
–
|
900.0
|
(97.5)
|
TITAN | TTN |
15.34
|
36.2
|
49.1
|
91.0
|
47.5
|
TRIMBLE NAVIGATION | TRMB |
27.35
|
11.2
|
18.5
|
8.6
|
119.0
|
VIASAT | VSAT |
14.22
|
(0.4)
|
(1.0)
|
33.7
|
23.2
|
Manufacturers’ Average |
100.00
|
0.4
|
7.3
|
62.1
|
22.5
|
|
Nasdaq Composite Index
|
||||||
S & P 500 | COMP |
1,735.02
|
0.9
|
6.9
|
18.5
|
29.9
|
SN Stock Price Average | SP50 |
990.31
|
0.2
|
1.6
|
8.0
|
12.6
|
100.00
|
4.6
|
5.2
|
53.0
|
41.7
|
Wall Street Analysis
By Tom Watts, SG Cowen Securities
After years of being the “Rodney Dangerfield” of the satellite industry, the fixed satellite services (FSS) sector may be finally getting some respect. The second quarter results released by Intelsat show two positive signs for the industry. One is a revenue upturn and the other is consolidation. Moreover, Intelsat indicated it is still on track for its long-awaited IPO, possibly as soon as the second quarter of 2004.
Intelsat reported a 2.3 percent sequential revenue growth. This followed PanAmSat [Nasdaq: SPOT] reporting a 1.9 percent sequential growth during the second quarter. The revenue upturn for these leaders marked a reversal from a period of decline. For Intelsat, the revenue growth came from data – a segment that has been eyed for high growth but only now is beginning to over-shadow video. Intelsat announced new contracts for private data networks from Telenor, the World Bank and SovIntel. The company also pointed to the growing video neighborhoods on its Intelsat 906 satellite over Africa, as well as expanding revenue from government – a sector that all operators now view as a source of new revenue.
On the consolidation side, Intelsat highlighted its recent acquisition of the North American satellite assets it plans to buy from Loral Space and Communications [PNK: LRLSQ]. The acquisition gives Intelsat a key beachhead in the important U.S. video market. We expect Intelsat to bring extensive revenue and cost synergies to the Loral fleet. Importantly to the industry, it also eliminates a financially weak operator, concentrating capacity in the hands of an owner that can stabilize prices and contribute to healthier industry dynamics.
On the IPO front, Intelsat stated its continued commitment to an IPO ahead of its June 30, 2004, deadline, as prescribed by the ORBIT Act. Intelsat CEO Conny Kullman implied that Intelsat shares would come to market immediately upon closing of the Loral acquisition. With closing slated for the first quarter of 2004, an IPO the following quarter looks likely.
We expect these developments to bring renewed focus on the FSS sector and its attractive cash flow generation.
Tom Watts is a managing director and satellite analyst at SG Cowen Securities. He can be reached by phone at 212/278-4260 or by e-mail at [email protected]. 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.