|
Week of Sept. 5 – 11, 2003
|
Percentage Change
|
|||||
|
|
Symbol
|
Sept. 5 Price
|
One Week
|
One Month
|
Three Month
|
Year to Date
|
|
Operators
|
||||||
| APT SATELLITE HLDGS | ATS |
2.46
|
(18.8)
|
(5.4)
|
29.5
|
43.0
|
| ASIASAT TELECOM | SAT |
16.29
|
(0.7)
|
(5.6)
|
(0.1)
|
43.0
|
| BRITISH SKY BROADCASTING | BSY |
41.99
|
(2.3)
|
(10.1)
|
(5.6)
|
4.8
|
| ECHOSTAR COMM -CL A | DISH |
36.88
|
(3.7)
|
2.4
|
10.8
|
65.7
|
| HUGHES ELEC (GM -CL H) | GMH |
14.20
|
(5.0)
|
6.0
|
12.3
|
32.7
|
| LORAL SPACE & COMM | LOR |
0.23
|
12.5
|
3.4
|
(93.6)
|
(94.8)
|
| NEWS CORP | NWS |
34.00
|
(3.4)
|
10.5
|
8.0
|
29.5
|
| NEW SKIES SATELLITES | NSK |
5.51
|
(0.7)
|
(2.5)
|
(8.3)
|
32.8
|
| PANAMSAT | SPOT |
15.29
|
(4.7)
|
(4.7)
|
(19.9)
|
4.4
|
| PASIFIK SATELIT NUSANTARA | PSNRY |
0.08
|
(0.0)
|
(48.4)
|
(5.9)
|
(46.7)
|
| PEGASUS COMMUNICATIONS | PGTV |
15.04
|
(20.8)
|
(59.2)
|
(43.1)
|
14.8
|
| rSTAR CORP | RSTRC |
0.75
|
–
|
(30.6)
|
17.2
|
212.5
|
| SES GLOBAL | SESF.LU |
6.15
|
1.3
|
–
|
12.8
|
(3.9)
|
| SIRIUS SATELLITE RADIO | SIRI |
1.72
|
4.5
|
6.2
|
(15.3)
|
168.8
|
| XM SATELLITE RADIO | XMSR |
15.84
|
14.2
|
32.4
|
42.1
|
488.8
|
| Operators’ Average |
100.00
|
(1.9)
|
(7.0)
|
(3.9)
|
66.4
|
|
|
Manufacturers
|
||||||
| ANDREW | ANDW |
13.53
|
3.7
|
36.4
|
37.8
|
31.6
|
| BALL | BLL |
51.06
|
(4.0)
|
4.0
|
8.5
|
(0.3)
|
| BOEING | BA |
35.75
|
(6.8)
|
10.9
|
4.2
|
8.4
|
| COM DEV INTL | CDV.TO |
1.96
|
11.4
|
40.0
|
76.6
|
98.0
|
| EMS TECHNOLOGIES | ELMG |
18.00
|
(3.7)
|
12.4
|
35.8
|
15.6
|
| GARMEN LTD. | GRMN |
42.00
|
(1.6)
|
15.3
|
(14.5)
|
43.3
|
| GILAT SAT NETWORKS | GILTF |
4.79
|
(2.0)
|
5.5
|
28.4
|
(38.6)
|
| GLOBECOM | GCOM |
4.59
|
(0.4)
|
35.1
|
41.2
|
22.4
|
| HARRIS | HRS |
34.14
|
(0.1)
|
12.8
|
8.6
|
29.8
|
| HONEYWELL | HON |
28.46
|
(4.6)
|
2.9
|
4.5
|
18.6
|
| KVH | KVHI |
29.16
|
2.6
|
49.5
|
34.1
|
239.1
|
| LOCKHEED MARTIN | LMT |
51.45
|
(1.2)
|
1.7
|
10.6
|
(10.9)
|
| LUCENT TECHNOLOGIES | LU |
2.19
|
3.3
|
24.4
|
(0.9)
|
73.8
|
| MOTOROLA | MOT |
10.94
|
3.4
|
19.2
|
27.2
|
26.5
|
| NERA | NERAY |
2.33
|
3.9
|
10.5
|
45.7
|
114.7
|
| ORBITAL SCIENCES | ORB |
9.38
|
2.2
|
17.1
|
44.8
|
122.3
|
| QUALCOMM | QCOM |
41.03
|
1.6
|
16.0
|
22.0
|
12.8
|
| RAYTHEON | RTN |
32.00
|
(1.1)
|
6.1
|
0.5
|
4.1
|
| ROCKWELL COLLINS | COL |
25.81
|
(5.5)
|
2.8
|
13.1
|
11.0
|
| SCIENTIFIC-ATLANTA | SFA |
32.35
|
(7.5)
|
14.6
|
54.1
|
172.8
|
| SKY FRAMES | SKYU |
1.20
|
41.2
|
14.3
|
(38.5)
|
(85.0)
|
| STM WIRELESS | STMI |
0.00
|
(65.0)
|
250.0
|
(76.7)
|
(98.3)
|
| TITAN | TTN |
17.71
|
7.3
|
18.1
|
77.1
|
70.3
|
| TRIMBLE NAVIGATION | TRMB |
26.85
|
(5.8)
|
6.6
|
2.9
|
115.0
|
| VIASAT | VSAT |
16.13
|
(0.4)
|
23.9
|
21.6
|
39.8
|
| Manufacturers’ Average |
100.00
|
(1.2)
|
26.0
|
18.7
|
41.5
|
|
| Nasdaq Composite Index | COMP |
1,846.09
|
(0.4)
|
12.3
|
13.4
|
38.2
|
| S & P 500 | SP50 |
1,016.42
|
(1.0)
|
4.0
|
3.2
|
15.5
|
| SN Stock Price Average |
100.00
|
(1.4)
|
13.6
|
10.2
|
50.8
|
|
By Tom Watts, SG Cowen Securities
The Federal Communications Commission’s (FCC) approval last week of plug-and-play rules for the benefit of cable television operators will have a ripple effect on the satellite industry. Satellite operators howled that the FCC planning process excluded them. We believe a more fundamental issue is at stake: Cable is trying to improve its economic model, while getting consumers to foot the bill.
The plug-and-play initiative enables consumer electronics (CE) manufacturers to introduce television sets that incorporate the role of advanced set-top boxes and are compatible with any cable system. These CE companies have a history of producing easy-to-use devices that appeal to consumers and incorporate ever-increasing functionality. While we expect satellite radio to be the hot holiday present for 2003, advanced plug-and-play TVs that incorporate digital video recorders (DVRs) easily could be a hot product in 2004.
The CE distribution channel also should help cable capitalize on the transition to high-definition TV (HDTV) mandated by 2007. As consumers go into their Circuit City [NYSE: CC] or Best Buy [NYSE: BBY] store to upgrade their television to HDTV, many TVs will not require cable set-top boxes (but will still need a separate set-top box for satellite services). This unprecedented convenience offers an opportunity for cable to stem the exodus of its customers to satellite.
Not only will plug-and-play allow cable to compete for HDTV customers, it also will offload a portion of the massive capital expenditure associated with upgrading cable set- tops for HDTV. The cable model could begin to look more like satellite, with the customer footing the bill for home equipment rather than the cable operator. This change could improve cable cash flow and potentially reduce churn.
Satellite isn’t standing still. While CE manufacturers ramp up for plug-and-play, both EchoStar [Nasdaq: DISH] and DirecTV already are giving away free satellite boxes with DVRs and focusing on upgrades to HDTV-compatible boxes. Moreover, plug-and-play is only for one-way services now. Satellite has a window over the next year or two years to accelerate subscriber conversion through its box promotions before cable plug-and-play units hit store shelves and to extend their capabilities to two-way.
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.