The Satellite News Financial Ticker

By | September 8, 2003 | Feature

Week of Aug. 29 – Sept. 4, 2003
Percentage Change

Symbol
Sept. 4 Price
One Week
One Month
Three Month
Year to Date
Operators
APT SATELLITE HLDGS ATS
3.1
13.1
0.6
55.8
80.2
ASIASAT TELECOM SAT
16.9
9.7
1.8
48.4
BRITISH SKY BROADCASTING BSY
42.33
0.4
-6.3
-2
5.7
ECHOSTAR COMM -CL A DISH
38.76
6.5
8.4
17.3
74.1
HUGHES ELEC (GM -CL H) GMH
15
3.6
10.1
23
40.2
LORAL SPACE & COMM LOR
0.2
-2.4
-8
-94.3
-95.3
NEWS CORP NWS
34.92
4.6
14.7
13.2
33
NEW SKIES SATELLITES NSK
5.65
0.9
0.2
-5.8
36.1
PANAMSAT SPOT
15.6
-2.9
-9
-17.8
6.6
PASIFIK SATELIT NUSANTARA PSNRY
0.08
14.3
6.7
-46.7
PEGASUS COMMUNICATIONS PGTV
18.1
-4.7
-49.3
-29.8
38.2
rSTAR CORP RSTRC
0.7
-10.3
18.6
34.6
191.7
SES GLOBAL SESF.LU
6.2
-8.1
17
-3.1
SIRIUS SATELLITE RADIO SIRI
1.66
3.8
-8.1
-29.4
159.4
XM SATELLITE RADIO XMSR
13.68
2.6
-2.6
9.4
408.6
Operators’ Average
100
1.1
-1.1
0
65.1
Manufacturers
ANDREW ANDW
12.7
8
20.2
32.2
23.5
BALL BLL
52.9
8.1
9.3
9.2
3.3
BOEING BA
37.84
4.7
16.7
17.8
14.7
EMS TECHNOLOGIES ELMG
18.92
9.7
14.7
40.1
21.5
GARMEN LTD. GRMN
42.94
7.1
12.3
-11.4
46.6
GILAT SAT NETWORKS GILTF
4.9
9.1
1.7
22.2
-37.2
GLOBECOM GCOM
4.65
17.4
19.5
55.5
24
HARRIS HRS
35.27
8.1
9.7
15.8
34.1
HONEYWELL HON
29.5
3.1
5.3
10.3
22.9
KVH KVHI
29.89
8.1
49.7
42.3
247.6
LOCKHEED MARTIN LMT
51.64
0.4
0.2
12.4
-10.6
LUCENT TECHNOLOGIES LU
2.14
13.2
23
1.4
69.8
MOTOROLA MOT
10.84
1
17.4
27.7
25.3
NERA NERAY
2.24
9.8
13
53.1
106.6
ORBITAL SCIENCES ORB
9.23
4.1
14
58
118.7
QUALCOMM QCOM
41.16
0.4
12.8
18.7
13.1
RAYTHEON RTN
32.47
2.8
5.2
2.4
5.6
ROCKWELL COLLINS COL
27.54
2.2
5.6
18.6
18.4
SCIENTIFIC-ATLANTA SFA
34.99
6.4
14.7
75
195
SKY FRAMES SKYU
1.09
24.6
9
-46.8
-86.4
STM WIRELESS STMI
0.01
233.3
100
100
-95
TITAN TTN
16.85
2.6
12.4
96.4
62
TRIMBLE NAVIGATION TRMB
28.22
5.3
5.3
8.5
125.9
VIASAT VSAT
16.44
2.4
21.8
33.2
42.5
Manufacturers’ Average
100
16.3
17.2
28.9
41.3
Nasdaq Composite Index COMP
1,868.98
4.9
8.9
16.6
39.9
S & P 500 SP50
1,027.97
3.1
4.9
5.8
16.8
SN Stock Price Average
100
10.5
10.2
17.8
50.5

Wall Street Analysis

By Tom Watts, SG Cowen Securities

Last quarter, EchoStar Communications [Nasdaq: DISH] experienced higher than usual churn of about 1.65 percent per month versus its average of about 1.5 percent.

So what did EchoStar do to stop the bleeding? Hand out free digital video recorders (DVRs), of course. Last week, EchoStar announced its plans to offer for free its new Dish Player 510 DVR to new subscribers, going head to head with Hughes Electronics’ [NYSE: GMH] DirecTV and TiVo [Nasdaq: TIVO] as well as cable operators’ video-on-demand and DVR offerings.

But gaining new subscribers comes with a price. Last quarter, EchoStar reported subscriber acquisition costs of $408, and we expect it to reach $490 by the end of this year.

Is it worth it? We think so. Just look at DirecTV. It reported that the churn rate for its TiVo DVR customers was down to 0.5 percent in the second quarter compared to a 1.5 percent churn rate for non-DVR customers.

We don’t expect the buck to stop with a free DVR. We expect to see some new and aggressive pricing offers. Also, we look forward to the unveiling of the Dish Player 921 HD with a 240 Gigabyte hard drive, dual-tuner DVR capability and the ability to record digital signals from broadcast stations. We also expect EchoStar to launch its own high-definition monitor soon.

With new marketing tactics underway, we see significant opportunities for both EchoStar and DirecTV to capture market share from cable.

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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