The Satellite News Financial Ticker

By | November 3, 2003 | Feature

Week of Oct. 24 – 30, 2003
Percentage Change
Operators
Symbol
Oct. 30 Price
One Week
One Month
Three Month
Year to Date
APT SATELLITE HLDGS ATS
2.21
(1.3)
6.3
(29.8)
28.5
ASIASAT TELECOM SAT
18.00
9.0
20.4
7.1
58.0
BRITISH SKY BROADCASTING BSY
44.12
1.4
7.1
(4.8)
10.1
ECHOSTAR COMM -CL A DISH
38.64
(0.8)
0.9
7.2
73.6
HUGHES ELEC (GM -CL H) GMH
16.24
3.8
13.5
17.9
51.8
LORAL SPACE & COMM LOR
0.31
(19.7)
56.4
40.2
(92.9)
NEWS CORP NWS
35.71
3.0
8.9
18.8
36.0
NEW SKIES SATELLITES NSK
6.73
11.8
16.8
17.9
62.2
PANAMSAT SPOT
20.41
5.3
41.0
17.6
39.4
PASIFIK SATELIT NUSANTARA PSNRY
0.19
(2.6)
8.8
19.4
23.3
PEGASUS COMMUNICATIONS PGTV
18.61
6.3
24.9
(50.9)
42.1
SES GLOBAL SESF.LU
7.50
(1.4)
12.8
26.9
17.2
SIRIUS SATELLITE RADIO SIRI
2.31
(7.6)
26.9
30.5
260.9
XM SATELLITE RADIO XMSR
19.89
4.2
28.3
47.7
639.4
Operators’ Average 100.00
0.8
19.5
11.8
89.3
Manufacturers
ANDREW ANDW
12.77
2.0
5.7
16.5
24.2
BALL BLL
57.53
6.5
6.5
16.3
12.4
BOEING BA
38.77
7.9
12.9
19.2
17.5
COM DEV INTL *CDV
2.51
0.4
9.6
79.3
153.5
EMS TECHNOLOGIES ELMG
18.06
0.4
6.4
4.0
16.0
GARMIN GRMN
50.32
19.0
20.2
30.7
71.7
GILAT SAT NETWORKS GILTF
4.80
13.2
7.4
1.3
(38.5)
GLOBECOM GCOM
4.23
(0.0)
7.6
14.3
12.7
HARRIS HRS
37.43
5.3
4.6
15.2
42.3
HONEYWELL HON
30.46
5.9
15.6
7.4
26.9
KVH KVHI
28.54
11.2
12.9
44.5
231.9
LOCKHEED MARTIN LMT
46.92
2.7
1.7
(10.5)
(18.8)
LUCENT TECHNOLOGIES LU
3.24
14.5
50.0
85.1
157.1
MOTOROLA MOT
13.75
2.0
15.1
51.1
59.0
NERA NERAY
2.05
(5.6)
6.4
3.2
89.3
ORBITAL SCIENCES ORB
9.31
(0.7)
0.3
12.4
120.6
QUALCOMM QCOM
48.02
9.5
15.2
28.6
32.0
RAYTHEON RTN
26.50
(0.8)
(5.4)
(13.5)
(13.8)
ROCKWELL COLLINS COL
27.18
1.4
7.6
4.1
16.9
SCIENTIFIC-ATLANTA SFA
29.62
(15.4)
(4.9)
0.8
149.7
SKY FRAMES SKYU
0.60
(21.1)
(45.5)
(45.5)
(92.5)
TITAN TTN
21.20
1.4
1.7
34.7
103.8
TRIMBLE NAVIGATION TRMB
28.17
21.4
22.2
3.2
125.5
VIASAT VSAT
19.73
3.2
10.6
42.4
71.0
Manufacturers’ Average 100.00
3.5
7.7
18.5
57.1
Nasdaq Composite Index
Nasdaq comp
1,932.69
2.5
8.2
12.3
44.7
SP 500 sp50
1,046.94
1.3
5.1
6.0
19.0
SN Stock Price Average  
100.00
2.5
12.0
16.1
69.0

Wall Street Analysis

By Tom Watts, SG Cowen Securities

New York-based Sirius Satellite Radio [Nasdaq: SIRI] showed forward momentum in its latest quarterly financial results. The start-up satellite-radio company notched net subscriber additions for the third quarter that reached 44,000, compared with 237,000 posted by rival XM Satellite Radio [Nasdaq: XMSR] for the same period. The difference underscores the challenge Sirius faces as the second entrant in the market.

So what lies ahead? Well, Sirius is making progress in getting commitments from Ford Motor Co. [NYSE: F] and DaimlerChrysler [NYSE: DCX] to factory install Sirius radios. Sirius CFO David Frear said that such commitments are “a matter of when, not if.” During 2004, the company expects to have factory-install programs in place for 47 vehicle models, an increase from the 27 factory-install programs available at year-end. By the end of 2003, Sirius radios will be available on either a factory- or dealer-install basis in more than 60 models. However, the factory-install program in place at Sirius differs from XM’s relationship with General Motors [NYSE: GM] and Honda Motor Co. [NYSE: HMC]. The dealer makes the sole choice whether to order a Sirius factory-install radio on any vehicle. By comparison, GM and Honda allocate a minimum number of vehicles that each dealer must order with XM. We favor XM’s “push” approach rather than the “pull” strategy of Sirius.

Ford remains the greatest sticking point. As the second largest automaker after GM, Ford offers the greatest potential user base. However, Ford has made the least effort to date. In September, Ford announced its dealer-install program for 10 models. The dealer-install kits only began shipping to Ford dealers recently. We continue to believe, and Sirius management agrees, that convincing OEM partners Ford, DaimlerChrysler and BMW to move to factory-installs has to be the company’s highest priority. Indeed, the limited traction Sirius is gaining in the aftermarket makes dealer-install programs even more crucial.

Although Sirius’ aftermarket products are having difficulty gaining traction, new products will be introduced in the fourth quarter that could revitalize its aftermarket sales.

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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