The Satellite News Financial Ticker

By | November 10, 2003 | Feature

Week of Oct. 31 – Nov. 6, 2003
Percentage Change
Symbol
Nov. 6 Price
One Week
One Month
Three Month
Year to Date
Operators
APT SATELLITE HLDGS ATS
2.72
24.8
36.0
(2.9)
58.1
ASIASAT TELECOM SAT
17.90
22.6
7.5
57.2
BRITISH SKY BROADCASTING BSY
44.30
0.3
2.8
(2.3)
10.6
ECHOSTAR COMM -CL A DISH
36.63
(6.0)
(8.5)
4.0
64.6
HUGHES ELEC (GM -CL H) GMH
16.47
3.7
13.0
23.2
53.9
LORAL SPACE & COMM LOR
0.36
14.5
36.5
63.2
(91.7)
NEWS CORP NWS
37.17
4.4
11.1
24.4
41.6
NEW SKIES SATELLITES NSK
6.53
5.8
11.6
17.2
57.3
PANAMSAT SPOT
21.07
0.3
38.1
27.9
43.9
PASIFIK SATELIT NUSANTARA PSNRY
0.07
(62.2)
(63.2)
(54.8)
(53.3)
PEGASUS COMMUNICATIONS PGTV
17.27
(7.1)
21.6
(51.7)
31.8
SES GLOBAL SESF.LU
8.02
4.8
22.3
30.0
25.3
SIRIUS SATELLITE RADIO SIRI
2.36
0.4
26.2
21.0
268.8
XM SATELLITE RADIO XMSR
21.71
11.7
37.2
54.5
707.1
Operators’ Average 100.00
(0.3)
14.8
11.5
91.1
Manufacturers
ANDREW ANDW
13.40
1.8
1.7
34.4
30.4
BALL BLL
56.21
(0.5)
0.8
16.3
9.8
BOEING BA
38.91
1.1
8.5
24.6
17.9
COM DEV INTL *CDV
3.25
29.0
53.3
132.1
228.3
EMS TECHNOLOGIES ELMG
21.22
17.2
20.2
29.0
36.3
GARMIN GRMN
51.33
(1.4)
18.4
37.3
75.2
GILAT SAT NETWORKS GILTF
4.75
(1.9)
0.6
1.5
(39.1)
GLOBECOM GCOM
5.12
24.6
29.0
42.2
36.5
HARRIS HRS
38.29
4.1
6.6
22.9
45.6
HONEYWELL HON
30.39
3.1
12.4
9.3
26.6
KVH KVHI
30.60
6.2
13.4
54.9
255.8
LOCKHEED MARTIN LMT
46.36
(1.2)
1.4
(7.6)
(19.7)
LUCENT TECHNOLOGIES LU
3.27
8.6
47.3
91.2
159.5
MOTOROLA MOT
14.00
0.9
14.0
51.7
61.8
NERA NERAY
2.07
(1.6)
(5.0)
(6.4)
91.2
ORBITAL SCIENCES ORB
9.61
1.4
(0.2)
17.9
127.7
QUALCOMM QCOM
46.79
(1.5)
6.4
29.9
28.6
RAYTHEON RTN
26.94
1.1
(3.6)
(10.4)
(12.4)
ROCKWELL COLLINS COL
27.99
2.4
9.0
9.6
20.3
SCIENTIFIC-ATLANTA SFA
29.90
(0.3)
(11.0)
1.9
152.1
SKY FRAMES SKYU
0.82
17.1
(31.7)
(18.0)
(89.8)
TITAN TTN
21.22
0.4
1.6
40.3
104.0
TRIMBLE NAVIGATION TRMB
29.40
6.1
21.2
13.9
135.4
VIASAT VSAT
21.06
6.2
12.7
55.9
82.5
Manufacturers’ Average
100.00
5.1
9.5
28.1
65.2
Nasdaq Composite Index
Nasdaq comp
1,976.37
2.1
5.1
18.1
48.0
SP 500 sp50
1,058.05
0.9
2.7
9.6
20.3
SN Stock Price Average
100.00
3.1
11.4
22.0
74.7

Wall Street Analysis

By Tom Watts, SG Cowen Securities

XM Satellite Radio’s [Nasdaq: XMSR] new XM Direct product could undermine rival Sirius Satellite Radio’s [Nasdaq: SIRI] original equipment manufacturer (OEM) distribution strategy. XM Direct enables any satellite-ready head unit, whether it is designed for XM or Sirius, to tune into XM using existing in-dash stereo controls. Our understanding is that XM’s new product would provide a converter to sit between the Sirius-ready head unit and an XM satellite receiver. A third party distributor will provide digital cable adapters and will package the product for both consumers and automobile dealers.

The XM Direct product will enable XM to target the large number of Sirius-ready vehicles being shipped by Sirius’ exclusive OEM partners DaimlerChrysler [NYSE: DCX], Ford [NYSE: F], and BMW. It also will give an automotive dealer, who previously could offer only Sirius, the opportunity to sell either Sirius or XM service. Further, it may encourage dealers not to order factory-installed Sirius systems, but to receive the Sirius-ready vehicles so the customer could have an XM or Sirius choice.

XM Direct further highlights the importance for Sirius to move to a factory-install basis rather than its current dealer-install basis. Sirius already is making strides in this direction. By year-end 2003, Sirius should be available in about 27 car models, up from about 20 currently. In 2004, factory installs should expand to 47 models, representing 2.8 million vehicles. The challenge, though, will be to get dealers to order the factory-installed units. Relying on this “pull” factor, rather than XM’s “push” strategy, where the automakers mandate how many vehicles will have XM, could represent a chink in Sirius’ new factory-install armor. XM Direct could be just the weapon to take advantage of that chink by encouraging Ford, DaimlerChrysler and BMW dealers to offer XM, as well as Sirius.

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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