The Satellite News Financial Ticker

By | August 25, 2003 | Feature

Week of Aug. 15 – 21, 2003
Percentage Change

Symbol
Aug. 21 Price
One Week
One Month
Three Month
Year to Date
Operators
APT SATELLITE HLDGS ATS
2.82
3.7
(18.3)
77.4
64.0
ASIASAT TELECOM SAT
16.15
(5.0)
(3.0)
10.6
41.8
BRITISH SKY BROADCASTING BSY
43.33
(4.9)
(4.6)
(0.8)
8.2
ECHOSTAR COMM -CL A DISH
36.23
5.7
2.5
19.0
62.8
HUGHES ELEC (GM -CL H) GMH
14.42
5.6
7.9
16.9
34.8
LORAL SPACE & COMM LOR
0.22
(94.1)
(94.9)
NEWS CORP NWS
33.05
1.3
8.1
14.1
25.9
NEW SKIES SATELLITES NSK
5.86
0.5
10.2
0.5
41.2
PANAMSAT SPOT
16.44
3.5
(7.1)
(4.1)
12.3
PASIFIK SATELIT NUSANTARA PSNRY
0.07
27.3
(54.8)
(53.3)
PEGASUS COMMUNICATIONS PGTV
22.23
6.4
(30.0)
(14.1)
69.7
rSTAR CORP RSTRC
0.92
(4.2)
70.4
64.3
283.3
SES GLOBAL SESF.LU
6.71
8.2
16.9
29.5
4.8
SIRIUS SATELLITE RADIO SIRI
1.57
(6.0)
(7.9)
38.9
145.3
XM SATELLITE RADIO XMSR
12.97
1.3
3.8
32.5
382.2
Operators’ Average
100.00
1.1
5.1
9.0
68.5
Manufacturers
ANDREW ANDW
12.21
21.5
11.5
34.5
18.8
BALL BLL
50.04
1.7
9.4
(4.3)
(2.2)
BOEING BA
34.95
7.9
4.8
20.8
5.9
COM DEV INTL CDV.TO
1.78
11.9
29.9
104.6
79.8
EMS TECHNOLOGIES ELMG
17.50
2.3
10.0
45.3
12.4
GARMEN LTD. GRMN
39.17
3.5
(2.5)
(10.5)
33.7
GILAT SAT NETWORKS GILTF
4.60
(1.6)
(16.6)
10.4
(41.0)
GLOBECOM GCOM
3.90
5.4
(2.7)
34.9
4.0
HARRIS HRS
32.61
7.4
11.3
13.0
24.0
HONEYWELL HON
29.15
4.4
5.2
23.0
21.5
KVH KVHI
24.85
12.8
25.1
32.2
189.0
LOCKHEED MARTIN LMT
50.58
0.4
(2.8)
6.8
(12.4)
LUCENT TECHNOLOGIES LU
1.87
7.5
10.7
(20.4)
48.4
MOTOROLA MOT
10.23
10.4
13.0
20.6
18.3
NERA NERAY
2.09
(0.2)
27.3
60.6
93.3
ORBITAL SCIENCES ORB
9.00
8.4
19.2
72.7
113.3
QUALCOMM QCOM
38.64
2.1
8.9
24.8
6.2
RAYTHEON RTN
31.08
1.1
(6.5)
(1.6)
1.1
ROCKWELL COLLINS COL
27.08
5.5
7.5
22.3
16.4
SCIENTIFIC-ATLANTA SFA
32.22
8.0
7.5
73.6
171.7
SKY FRAMES SKYU
1.05
(12.5)
(36.4)
(28.8)
(86.9)
STM WIRELESS STMI
0.00
(60.0)
(80.0)
(99.0)
TITAN TTN
16.14
3.4
47.3
104.8
55.2
TRIMBLE NAVIGATION TRMB
28.30
9.9
12.8
20.1
126.6
VIASAT VSAT
16.25
10.5
16.9
43.9
40.8
Manufacturers’ Average
100.00
5.3
6.0
24.9
33.5
Nasdaq Composite Index COMP
1,777.55
5.4
4.0
19.2
33.1
S & P 500 SP50
1,003.27
2.0
1.0
9.1
14.0
SN Stock Price Average
100.00
3.7
5.7
19.0
46.7

Wall Street Analysis

By Tom Watts, SG Cowen Securities

Though some believe that the direct broadcast satellite (DBS) market is almost saturated, we expect DBS use will increase from just under 20 percent of U.S. TV households today to 25 percent by 2010. One of the factors that should drive subscriber growth is increased penetration of digital video recorders (DVRs).

While DVRs are not yet the “must have” of the multichannel world, the word is spreading quickly. The potential of DVRs as a replacement for the VCR, which has 80-plus percent penetration, is quite substantial. Of course, the cable companies will argue that video-on-demand (VOD) is the way to go. But if that’s the case, then why is it that only one out of five households with VOD available actually uses the service? At the end of 2002, 7 million digital households had access to video-on-demand programming and by 2006, we project that VOD will reach 38 million digital homes. This growth rate suggests that only about 7 to 8 million will use the service. Price may limit the use of VOD services. In the long run, VOD is more expensive than DVRs. VOD requires a digital cable set-top box priced at an average of $4.50 per month. In addition, the price per movie averages $4. And, the subscription fee per month can run up to about $30. DVR recorders, on the other hand, cost only about $265 up front, with no cost to record, and a monthly service fee of $4.95 for standard TiVo customers. According to the Consumer Electronics Association, DVR unit sales are expected to increase to more than 500,000 by the end of the year, while the average unit price is expected to decrease.

Also, the DBS companies are starting to offer SVOD (Subscription VOD) to strike back at cable. For example, DirecTV, in conjunction with TiVo, has partnered with Starz Encore in offering a SVOD feature for subscribers. Those who subscribe to the Starz Super Pak and have a DirecTV/TiVo receiver can receive the SVOD service at no additional cost. The service allows the automatic download of pre-selected movies that subscribers can watch at their leisure. We believe this type of service is more attractive to the consumer and will ultimately lead to a larger market share for the DBS companies.

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 . 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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