The Satellite News Financial Ticker

By | May 31, 2004 | Feature

Week of May 21-27, 2004
Percentage Change
Symbol
May 27 Price
One Week
One Month
Three Month
Year to Date
Operators
APT SATELLITE HLDGS ATS
1.85
3.4
(10.2)
(26.6)
(22.3)
Operators
APT SATELLITE HLDGS ATS
1.75
0.6
(4.4)
(24.9)
(26.5)
ASIASAT TELECOM SAT
15.33
(1.1)
(8.2)
(20.1)
(19.2)
BRITISH SKY BROADCASTING BSY
45.22
2.0
(10.1)
(16.6)
(11.2)
ECHOSTAR COMM -CL A DISH
32.63
6.7
(5.3)
(11.8)
(4.0)
THE DIRECTV GROUP DTV
17.81
4.1
(0.8)
5.1
7.6
LORAL SPACE & COMM LOR
0.13
(56.7)
(77.2)
(79.7)
(58.7)
NEWS CORP NWS
36.84
3.0
(2.3)
(1.5)
2.0
NEW SKIES SATELLITES NSK
8.01
14.9
11.7
16.9
11.9
PANAMSAT SPOT
23.21
0.9
0.3
0.9
7.7
PASIFIK SATELIT NUSANTARA PSNRY
0.22
(6.4)
340.0
PEGASUS COMMUNICATIONS PGTV
16.51
30.3
(21.6)
(46.0)
(41.2)
SES GLOBAL SESF.LU
6.73
1.2
(13.9)
(10.9)
(15.9)
SIRIUS SATELLITE RADIO SIRI
3.06
(3.8)
(14.3)
2.0
(3.2)
XM SATELLITE RADIO XMSR
24.74
5.6
(9.9)
0.4
(5.9)
Operators’ Average 100.00
0.6
(11.1)
(13.7)
13.1
Manufacturers
ANDREW ANDW
19.52
11.4
(5.1)
12.1
68.4
BALL BLL
67.08
3.9
(3.9)
4.6
12.6
BOEING BA
46.20
6.5
6.8
8.9
9.6
COM DEV INTL *CDV
2.44
5.6
4.3
(9.0)
(15.3)
EMS TECHNOLOGIES ELMG
21.99
17.3
22.0
(4.3)
7.1
GARMIN GRMN
34.34
11.2
(11.2)
(25.5)
(37.0)
GILAT SAT NETWORKS GILTF
5.73
8.5
(25.3)
(19.9)
17.2
GLOBECOM GCOM
5.90
9.3
(2.2)
14.3
24.2
HARRIS HRS
45.67
6.4
(4.4)
(4.6)
20.3
HONEYWELL HON
33.71
1.3
(3.0)
(3.5)
0.8
KVH KVHI
13.09
4.3
(15.2)
(21.0)
(52.5)
LOCKHEED MARTIN LMT
49.88
5.2
7.3
7.2
(3.0)
LUCENT TECHNOLOGIES LU
3.58
12.9
(6.0)
(15.0)
26.1
MOTOROLA MOT
19.80
2.3
(2.3)
9.5
41.4
ORBITAL SCIENCES ORB
12.77
4.2
(1.2)
0.5
6.2
QUALCOMM QCOM
66.76
5.0
0.9
4.8
23.8
RAYTHEON RTN
33.32
1.0
4.3
10.4
10.9
ROCKWELL COLLINS COL
30.03
0.9
(8.9)
(4.4)
SCIENTIFIC-ATLANTA SFA
34.02
3.8
(5.7)
5.3
24.6
SKY FRAMES SKYU
0.01
(90.0)
(90.0)
(90.0)
(90.0)
TITAN TTN
18.74
(2.3)
(3.7)
(11.0)
(14.1)
TRIMBLE NAVIGATION TRMB
27.30
13.2
20.0
21.3
10.0
VIASAT VSAT
23.01
2.2
(4.0)
(14.5)
20.2
Manufacturers’ Average 100.00
1.9
(5.5)
(5.4)
4.9
Nasdaq Composite Index
Nasdaq comp
1,984.50
4.5
(2.6)
(2.4)
(0.9)
SP 500 sp50
1,121.26
3.0
(1.3)
(2.1)
0.8
SN Stock Price Average 100.00
1.4
(7.6)
(8.5)
8.0

Wall Street Analysis

The DirecTV Group [DTV] of El Segundo, Calif., seems to be waffling over whether it will pursue the SpaceWay satellite broadband system its Germantown, Md.- based Hughes Network Systems business unit is nearly ready to launch. Market rumors, media reports and speculation from Wall Street analysts suggest DirecTV is considering using the birds to supplement existing capacity of its DirecTV satellite TV service, selling the assets at a loss to reap a quick tax write-off or attempting to pursue video and broadband applications simultaneously.

The SpaceWay satellites are designed to provide Ka-band broadband services, and they are not well-suited technically to offer satellite TV. William Kidd, a satellite analyst with New York-based media research company Vintage Research, said Friday morning during a phone interview that he was skeptical a “technically feasible” video application could be found for the yet-to-be launched SpaceWay satellites. In Kidd’s view, DirecTV subscribers would need to use a new antenna and set-top box to gain any benefit from the satellites.

“Broadband in Ka-band is less problematic because an IP packet can always be resent, whereas video is simply lost,” Kidd wrote to his clients. Kidd questioned whether The DirecTV Group management wants to take on the challenge they inherited with SpaceWay when News Corp [NWS] bought Hughes Electronics (since renamed The DirecTV Group) last December to gain control of the largest U.S. satellite TV service. The high financial risk of the $1.9 billion SpaceWay project is compounded by the presence of other proposed Ka-band satellite services in the market place that have been restructured to reduce their cost bases, Kidd noted. A change in the plans for SpaceWay could allow its new owners to write down the value of the assets to more quickly gain tax loss advantages.

However, the SpaceWay satellites could be used to provide DirecTV subscribers with local channels through onboard spot beams. Despite this potential application, financial considerations and not technical capabilities will determine SpaceWay’s fate.

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

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