The Satellite News Financial Ticker

By | October 27, 2003 | Feature

Week of Oct. 17 – 23, 2003
Percentage Change
Symbol
Oct. 23 Price
One Week
One Month
Three Month
Year to Date
Operators
APT SATELLITE HLDGS ATS 2.24 3.7 (4.7) (24.1) 30.2
ASIASAT TELECOM SAT 16.51 2.9 11.2 (1.7) 45.0
BRITISH SKY BROADCASTING BSY 43.49 0.8 1.6 (4.9) 8.6
ECHOSTAR COMM -CL A DISH 38.95 (2.4) (3.6) 8.7 75.0
HUGHES ELEC (GM -CL H) GMH 15.64 1.2 5.8 17.0 46.2
LORAL SPACE & COMM LOR 0.38 (5.0) 76.7 74.7 (91.2)
NEWS CORP NWS 34.66 0.2 1.8 14.2 32.0
NEW SKIES SATELLITES NSK 6.02 3.3 13.4 10.9 45.1
PANAMSAT SPOT 19.38 2.0 30.3 10.7 32.4
PASIFIK SATELIT NUSANTARA PSNRY 0.19 15.2 171.4 26.7
PEGASUS COMMUNICATIONS PGTV 17.50 25.5 7.7 (48.2) 33.6
SES GLOBAL 549343 7.61 0.8 15.3 31.4 18.9
SIRIUS SATELLITE RADIO SIRI 2.50 5.5 24.0 53.4 290.6
XM SATELLITE RADIO XMSR 19.08 (6.1) 18.6 50.7 609.3
Operators’ Average 100.00 2.3 15.2 26.0 85.9
Manufacturers
ANDREW ANDW 12.52 (6.8) (4.6) 24.1 21.8
BALL BLL 54.04 (3.7) (0.3) 11.2 5.6
BOEING BA 35.94 (4.0) 2.2 9.9 8.9
COM DEV INTL *CDV 2.50 (2.0) 8.7 85.2 152.5
EMS TECHNOLOGIES ELMG 17.99 (5.8) 14.6 15.5
GARMIN GRMN 42.30 (5.5) (7.7) 0.8 44.4
GILAT SAT NETWORKS GILTF 4.24 (8.8) (11.1) (16.5) (45.6)
GLOBECOM GCOM 4.23 4.4 9.3 1.9 12.8
HARRIS HRS 35.53 (1.6) 0.7 14.9 35.1
HONEYWELL HON 28.77 (2.8) 6.1 1.2 19.9
KVH KVHI 25.66 (5.8) (13.8) 27.8 198.4
LOCKHEED MARTIN LMT 45.67 (0.1) (0.7) (14.4) (20.9)
LUCENT TECHNOLOGIES LU 2.83 20.4 25.8 57.2 124.6
MOTOROLA MOT 13.48 (1.6) 9.6 47.5 55.8
NERA NERAY 2.20 (0.4) (1.1) 39.9 103.1
ORBITAL SCIENCES ORB 9.38 (6.0) (2.8) 15.8 122.3
QUALCOMM QCOM 43.87 (2.2) (2.0) 21.0 20.6
RAYTHEON RTN 26.71 (5.0) (8.4) (20.4) (13.1)
ROCKWELL COLLINS COL 26.81 0.1 4.1 5.1 15.3
SCIENTIFIC-ATLANTA SFA 35.03 (4.4) 3.7 16.2 195.4
SKY FRAMES SKYU 0.75 (21.1) (31.2) (42.3) (90.6)
TITAN TTN 20.90 (0.5) (0.0) 85.6 101.0
TRIMBLE NAVIGATION TRMB 23.20 (1.0) (12.1) (5.7) 85.7
VIASAT VSAT 19.11 (5.5) 5.3 33.9 65.6
Manufacturers’ Average 100.00 (2.9) (0.8) 17.3 51.4
Nasdaq Composite Index
Nasdaq comp 1,885.51 (3.3) (0.9) 9.7 41.2
SP 500 sp50 1,030.36 (1.9) 0.1 4.2 17.1
SN Stock Price Average 100.00 (1.0) 5.1 20.5 64.1

Wall Street Analysis

By Tom Watts, SG Cowen Securities

The fate of the DirecTV 7S satellite was finally resolved — at least for now. After a full day of courtroom drama, plus one night’s sleep, U.S. Bankruptcy Court Judge Robert Drain ruled that Loral Space & Communications’ [OTCBB: LRLSQ] satellite manufacturing arm Space Systems Loral (SS/L) would have to fulfill its contractual obligation to deliver the satellite to DirecTV – a decision we consider fair and just.

If successful, the attempts by rival EchoStar Communications [Nasdaq: DISH] to buy the satellite off SS/L’s factory floor would have delayed DirecTV’s plans to deliver local programming to another 1.5 million subscribers in 35 markets. We estimate that without that local programming, DirecTV could have lost 200,000 subscribers or more to EchoStar, which should local programming in all those markets by the end of this year.

EchoStar fought long and hard. First, EchoStar offered $100 million for the satellite. Five days later, the bid was raised to $200 million. Finally, at the last minute, EchoStar changed course and offered $60 million-plus indemnification to Loral for any damage claims that DirecTV would have sought. DirecTV estimates it would have had claims against Loral of about $200 million if the satellite were sold elsewhere. In his ruling, the judge addressed the whole issue of indemnification by EchoStar as “a problem waiting to happen.”

In the end, DirecTV agreed to pay $25 million above its original contract price, with total cost reaching about $165 million. DirecTV’s parent Hughes Electronics [NYSE: GMH] provided another $75 million in cash deposits consisting of $25 million each for three satellites it has ordered. Though we don’t know how much this headache has ultimately cost DirecTV in legal fees and the like, one thing we do know is that EchoStar Chairman Charlie Ergen and his team can be counted on for drama. Characteristically, EchoStar officials said they are considering an appeal.

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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