The Satellite News Financial Ticker

By | May 17, 2004 | Feature

Week of May 6, – 13 2004
Percentage Change
Symbol
May 13 Price
One Week
One Month
Three Month
Year to Date
Operators
APT SATELLITE HLDGS ATS
1.81
(5.2)
(8.1)
(29.0)
(23.9)
ASIASAT TELECOM SAT
16.39
(2.7)
(10.7)
(19.5)
(13.6)
BRITISH SKY BROADCASTING BSY
44.91
(7.1)
(12.5)
(23.9)
(11.8)
ECHOSTAR COMM -CL A DISH
30.50
(11.1)
(9.7)
(21.4)
(10.3)
THE DIRECTV GROUP DTV
17.00
(5.3)
(0.6)
2.7
LORAL SPACE & COMM LOR
0.32
(36.0)
(41.8)
(61.9)
1.6
NEWS CORP NWS
35.67
(4.6)
(6.1)
(7.1)
(1.2)
NEW SKIES SATELLITES NSK
7.04
(9.0)
1.7
1.1
(1.7)
PANAMSAT SPOT
23.03
(6.5)
2.4
6.8
PASIFIK SATELIT NUSANTARA PSNRY
0.22
4.8
340.0
PEGASUS COMMUNICATIONS PGTV
19.81
9.6
(46.5)
(27.9)
(29.5)
SES GLOBAL SESF.LU
6.90
(3.4)
(1.4)
(12.7)
(13.8)
SIRIUS SATELLITE RADIO SIRI
3.12
(8.8)
(21.0)
0.3
(1.3)
XM SATELLITE RADIO XMSR
23.25
(9.9)
(20.3)
3.8
(11.6)
Operators’ Average
100.00
(6.7)
(13.1)
(13.7)
16.6
Manufacturers
ANDREW ANDW
17.37
(2.4)
(15.8)
(0.7)
49.9
BALL BLL
65.62
(0.2)
(7.2)
1.1
10.2
BOEING BA
43.60
(0.4)
3.4
(1.7)
3.5
COM DEV INTL *CDV
1.62
(34.6)
(40.2)
(44.5)
(43.9)
EMS TECHNOLOGIES ELMG
18.56
(4.4)
(12.9)
(20.2)
(9.6)
GARMIN GRMN
29.11
(3.4)
(31.1)
(39.2)
(46.6)
GILAT SAT NETWORKS GILTF
5.92
(5.4)
(33.4)
(29.8)
21.1
GLOBECOM GCOM
5.97
(10.2)
8.5
(8.0)
25.7
HARRIS HRS
43.39
(3.3)
(13.2)
(13.6)
14.3
HONEYWELL HON
33.53
(3.1)
(4.2)
(9.3)
0.3
KVH KVHI
13.40
(2.8)
(4.5)
(29.5)
(51.4)
LOCKHEED MARTIN LMT
47.68
(1.3)
1.6
(3.3)
(7.2)
LUCENT TECHNOLOGIES LU
3.35
(1.2)
(24.0)
(23.5)
18.0
MOTOROLA MOT
19.40
1.3
7.8
10.7
38.6
ORBITAL SCIENCES ORB
12.72
(1.0)
(0.6)
(5.3)
5.8
QUALCOMM QCOM
64.40
(0.9)
(5.5)
9.9
19.4
RAYTHEON RTN
32.74
1.2
2.7
4.2
9.0
ROCKWELL COLLINS COL
29.95
(6.6)
(9.0)
(9.2)
(0.3)
SCIENTIFIC-ATLANTA SFA
32.98
(0.7)
(1.5)
(1.5)
20.8
SKY FRAMES SKYU
0.10
900.0
TITAN TTN
19.09
0.1
(2.6)
(12.4)
(12.5)
TRIMBLE NAVIGATION TRMB
25.54
(5.2)
3.0
7.9
2.9
VIASAT VSAT
21.93
(4.0)
(14.9)
(18.8)
14.6
Manufacturers’ Average
100.00
(3.9)
(8.4)
28.8
3.6
Nasdaq Composite Index
Nasdaq comp
1,926.03
(1.6)
(6.8)
(7.1)
(3.9)
SP 500 sp50
1,096.45
(2.2)
(4.3)
(4.8)
(1.4)
SN Stock Price Average
100.00
(4.9)
(10.2)
12.8
8.5

Wall Street Analysis

Last week’s announcement that El Segundo, Calif.-based The DirecTV Group [DTV] agreed to sell the set-top box (STB) operations of Germantown, Md.’s Hughes Network Systems (HNS) left several satellite analysts speculating about the sale of the rest of the HNS assets. With executives of The DirecTV Group stating unequivocally that their company’s core business is satellite television alone, all of HNS should expect to be pared.

Remaining assets of HNS include the DirecWay VSAT and Ku-band consumer broadband service; a proposed Ka-band, enterprise broadband service that would use yet-to-be-launched SpaceWay satellites; and satellite communications, networks and equipment businesses.

Bob Peck, a satellite analyst with New York’s Bear Stearns, said he expects The DirecTV Group to “monetize” all or most of its holdings in HNS. The big question, in Peck’s view, is whether the $1.8 billion SpaceWay project will be sold or will be used to provide local HD programming for the U.S. DirecTV satellite television service?

Another Wall Street analyst, William Kidd of Vintage Research, wrote to his clients last week that he believes SpaceWay is a candidate for the block. HNS has a diversified collection of businesses that makes the company difficult to sell without breaking it up, Kidd added.

Thomson [TMS], however, seems to have purchased the HNS STB business at a modest price. This not only is Kidd’s view but also that of Tim Boddy, a London- based Goldman Sachs analyst. Indeed, Thomson is acquiring the STB business at a “great price” for the buyer, Kidd said. Other STB manufacturers are trading at “much loftier” revenue multiples than the price of 52 percent of revenues paid by Thomson, Kidd wrote in his research note. With STB upgrades possible as DirecTV shifts from basic services to Digital Video Recorders (DVRs) and high-definition STBs, Thomson’s revenues from the purchase of the HNS business could rise from a minimum of $1.5 billion to as much as $4 billion, Boddy predicted.

Either way, the first purge of a business at HNS has occurred, and more should be expected.

Paul Dykewicz is senior editor and senior analyst of Satellite News. He can be reached at 301/354-1769 or at pdykewicz@pbimedia.com.

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