The Satellite News Financial Ticker

By | September 15, 2003 | Feature

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

Wall Street Analysis

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 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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