The Satellite News Financial Ticker

By | November 24, 2003 | Feature

Week of Nov. 14 – 20, 2003
Percentage Change
Symbol
Nov. 20 Price
One Week
One Month
Three Month
Year to Date
Operators
APT SATELLITE HLDGS ATS
2.11
(18.5)
(3.2)
(24.6)
22.7
ASIASAT TELECOM SAT
16.50
(5.6)
3.1
(2.7)
44.9
BRITISH SKY BROADCASTING BSY
46.85
1.6
7.8
5.2
16.9
ECHOSTAR COMM -CL A DISH
34.32
3.6
(13.5)
(4.5)
54.2
HUGHES ELEC (GM -CL H) GMH
15.69
(1.7)
1.6
12.8
46.6
LORAL SPACE & COMM LOR
0.33
(15.4)
(23.3)
51.7
(92.3)
NEWS CORP NWS
34.03
(6.0)
(0.7)
2.8
29.6
NEW SKIES SATELLITES NSK
6.80
(0.4)
15.1
16.8
63.9
PANAMSAT SPOT
19.93
(7.6)
6.0
21.0
36.1
PASIFIK SATELIT NUSANTARA PSNRY
0.30
328.6
62.2
328.6
100.0
PEGASUS COMMUNICATIONS PGTV
20.37
0.5
50.3
(5.3)
55.5
SES GLOBAL SESF.LU
7.70
(2.8)
22.0
20.3
SIRIUS SATELLITE RADIO SIRI
2.02
(7.4)
(16.2)
27.8
215.6
XM SATELLITE RADIO XMSR
21.44
(8.6)
7.3
69.5
697.0
Operators’ Average
100.00
18.6
6.9
37.2
93.6
Manufacturers
ANDREW ANDW
11.18
(13.1)
(15.4)
(7.5)
8.8
BALL BLL
54.75
(1.2)
(0.5)
9.2
7.0
BOEING BA
39.36
0.7
5.7
14.7
19.3
COM DEV INTL *CDV
3.03
0.3
18.4
89.4
206.1
EMS TECHNOLOGIES ELMG
20.22
(8.4)
10.3
15.5
29.9
GARMIN GRMN
52.91
4.8
18.4
34.9
80.6
GILAT SAT NETWORKS GILTF
4.74
(12.7)
6.5
1.9
(39.2)
GLOBECOM GCOM
5.76
3.8
40.9
50.0
53.6
HARRIS HRS
36.88
(2.7)
3.5
13.9
40.2
HONEYWELL HON
28.97
(4.5)
(0.1)
(1.7)
20.7
KVH KVHI
28.98
(0.9)
5.4
24.0
237.0
LOCKHEED MARTIN LMT
46.10
0.1
0.4
(11.3)
(20.2)
LUCENT TECHNOLOGIES LU
3.05
(5.9)
28.2
61.4
142.1
MOTOROLA MOT
13.31
(2.5)
(1.3)
30.5
53.9
NERA NERAY
1.95
(2.7)
(12.9)
(6.8)
80.1
ORBITAL SCIENCES ORB
9.47
0.7
(2.0)
4.8
124.4
QUALCOMM QCOM
44.77
(6.4)
3.5
15.7
23.0
RAYTHEON RTN
27.19
(2.9)
(14.1)
(11.6)
ROCKWELL COLLINS COL
26.65
(0.6)
0.9
(0.1)
14.6
SCIENTIFIC-ATLANTA SFA
26.93
(7.9)
(23.1)
(12.5)
127.1
SKY FRAMES SKYU
0.90
50.0
(9.1)
(25.0)
(88.8)
TITAN TTN
21.16
(0.3)
1.0
30.2
103.5
TRIMBLE NAVIGATION TRMB
28.88
2.8
29.8
6.0
131.2
VIASAT VSAT
20.00
(7.4)
2.3
25.0
73.3
Manufacturers’ Average
100.00
(0.6)
4.5
14.5
59.0
Nasdaq Composite Index
Nasdaq comp
1,881.92
(4.6)
(1.6)
6.9
40.9
SP 500 sp50
1,033.65
(2.4)
(0.5)
3.1
17.5
SN Stock Price Average
100.00
6.5
5.4
22.9
71.8

Wall Street Analysis

By Tom Watts, SG Cowen Securities

Proceeds from an expected $150 million equity offering by Sirius Satellite Radio [Nasdaq: SIRI] should fund programming and distribution initiatives to help accelerate its business plan. The offering, set to close Nov. 24, reinforces our view that both Sirius and XM Satellite Radio [Nasdaq: XMSR] will continue to tap the capital markets opportunistically. We believe it is wise for Sirius to raise a cash cushion at a time when the capital markets are receptive. This could avoid distress later if subscribers sign up more slowly than expected or if costs rise.

We expect that programming initiatives from Sirius could include major radio personalities such as Howard Stern or Don Imus and/or a deal with the NFL, similar to DirecTV’s Sunday Ticket. Distribution initiatives could include new aftermarket channels, possibly Wal-Mart Stores [NYSE: WMT] or Target [NYSE: TGT]. But more than the distribution channel needs attention. Maybe Sirius’ product offerings need a boost, too. We estimate Sirius’ aftermarket share is only about 24 percent of XM’s. It is apparent that Sirius’ aftermarket products are having difficulty gaining traction. The much-heralded Kenwood plug-and-play unit, introduced in June, apparently had little effect on third quarter numbers. Perhaps Sirius’ research and development program will get a lift with the stock offering’s proceeds.

Also, we believe that more attractive incentives could be forthcoming to spur Sirius’ original equipment manufacturer (OEM) sales. Sirius should announce the new initiatives within the next two quarters. This could become a potential catalyst for the stock. Subscriber effects could begin as soon as the first quarter of 2004, just as stepped-up OEM programs ensue.

We believe Sirius must demonstrate better OEM results before its stock price will improve. Investors probably need to wait for the first quarter before significant evidence of heightened OEM contribution becomes visible.

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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