The Satellite News Financial Ticker
Week of Oct. 3 – 9, 2003
|
Percentage Change
|
|||||
Symbol
|
Oct. 9 Price
|
One Week
|
One Month
|
Three Month
|
Year to Date
|
|
Operators
|
||||||
APT SATELLITE HLDGS | ATS |
2.30
|
9.5
|
(20.7)
|
(19.9)
|
33.7
|
ASIASAT TELECOM | SAT |
15.15
|
(0.3)
|
(11.1)
|
(12.4)
|
33.0
|
BRITISH SKY BROADCASTING | BSY |
43.00
|
3.5
|
1.9
|
(6.3)
|
7.3
|
ECHOSTAR COMM -CL A | DISH |
39.87
|
3.5
|
2.8
|
8.6
|
79.1
|
HUGHES ELEC (GM -CL H) | GMH |
15.10
|
4.9
|
1.4
|
11.6
|
41.1
|
LORAL SPACE & COMM | LOR |
0.33
|
26.4
|
32.0
|
(89.0)
|
(92.3)
|
NEWS CORP | NWS |
33.89
|
2.1
|
(1.6)
|
9.9
|
29.1
|
NEW SKIES SATELLITES | NSK |
5.80
|
–
|
2.8
|
19.6
|
39.8
|
PANAMSAT | SPOT |
15.51
|
3.7
|
(3.0)
|
(17.8)
|
5.9
|
PASIFIK SATELIT NUSANTARA | PSNRY |
0.19
|
(2.6)
|
131.3
|
32.1
|
23.3
|
PEGASUS COMMUNICATIONS | PGTV |
14.25
|
(4.2)
|
(16.2)
|
(55.1)
|
8.8
|
rSTAR CORP | RSTRC |
0.62
|
1.6
|
(17.3)
|
6.9
|
158.3
|
SES GLOBAL | SESF.LU |
6.90
|
4.9
|
12.9
|
21.1
|
7.8
|
SIRIUS SATELLITE RADIO | SIRI |
1.94
|
4.8
|
15.4
|
9.5
|
202.8
|
XM SATELLITE RADIO | XMSR |
17.99
|
12.8
|
23.4
|
40.0
|
568.8
|
Operators’ Average |
100.00
|
4.7
|
10.3
|
(2.7)
|
76.4
|
|
Manufacturers
|
||||||
ANDREW | ANDW |
13.49
|
10.0
|
6.4
|
18.8
|
31.2
|
BALL | BLL |
56.57
|
3.1
|
6.4
|
25.3
|
10.5
|
BOEING | BA |
36.79
|
4.1
|
(0.5)
|
5.1
|
11.5
|
COM DEV INTL | CDV.TO |
2.12
|
(7.0)
|
6.0
|
46.2
|
114.1
|
EMS TECHNOLOGIES | ELMG |
19.10
|
12.2
|
4.0
|
37.2
|
22.7
|
GARMIN LTD. | GRMN |
44.58
|
7.0
|
1.3
|
5.0
|
52.2
|
GILAT SAT NETWORKS | GILTF |
5.67
|
23.0
|
14.5
|
15.5
|
(27.3)
|
GLOBECOM | GCOM |
4.31
|
11.9
|
(9.8)
|
16.5
|
14.9
|
HARRIS | HRS |
36.23
|
0.6
|
3.3
|
19.2
|
37.8
|
HONEYWELL | HON |
27.87
|
3.8
|
(7.3)
|
0.2
|
16.1
|
KVH | KVHI |
28.26
|
12.1
|
(8.0)
|
16.8
|
228.6
|
LOCKHEED MARTIN | LMT |
45.74
|
(1.5)
|
(12.4)
|
(4.8)
|
(20.8)
|
LUCENT TECHNOLOGIES | LU |
2.32
|
8.4
|
(2.1)
|
20.8
|
84.1
|
MOTOROLA | MOT |
13.73
|
13.2
|
21.7
|
39.1
|
58.7
|
NERA | NERAY |
2.19
|
8.3
|
(9.9)
|
35.9
|
102.6
|
ORBITAL SCIENCES | ORB |
9.45
|
(1.5)
|
(1.4)
|
22.9
|
123.9
|
QUALCOMM | QCOM |
43.66
|
3.1
|
2.8
|
10.6
|
20.0
|
RAYTHEON | RTN |
27.53
|
(3.4)
|
(15.6)
|
(15.5)
|
(10.5)
|
ROCKWELL COLLINS | COL |
25.88
|
1.6
|
(5.1)
|
1.4
|
11.3
|
SCIENTIFIC-ATLANTA | SFA |
34.60
|
12.0
|
(3.3)
|
31.3
|
191.7
|
SKY FRAMES | SKYU |
1.05
|
(4.5)
|
(16.0)
|
(38.2)
|
(86.9)
|
STM WIRELESS | STMI |
0.01
|
(75.0)
|
53.8
|
(50.0)
|
(95.0)
|
TITAN | TTN |
20.94
|
0.2
|
22.5
|
95.7
|
101.3
|
TRIMBLE NAVIGATION | TRMB |
24.25
|
2.6
|
(13.4)
|
(6.7)
|
94.2
|
VIASAT | VSAT |
21.35
|
17.6
|
27.3
|
44.3
|
85.0
|
Manufacturers’ Average |
100.00
|
2.5
|
2.6
|
15.7
|
46.9
|
|
Nasdaq Composite Index | COMP |
1,911.90
|
4.3
|
1.2
|
9.5
|
43.2
|
S & P 500 | SP50 |
1,038.73
|
2.0
|
0.7
|
3.1
|
18.1
|
SN Stock Price Average |
100.00
|
3.3
|
5.5
|
8.8
|
58.0
|
Wall Street Analysis
By Tom Watts, SG Cowen Securities
EchoStar Communications [Nasdaq: DISH] has garnered lots of press with its overture to buy Loral Space and Communications [OTC BB: LRLSQ.OB]. Given the process it has chosen, we doubt that EchoStar is serious. The Oct. 15 bid deadline in Loral’s bankruptcy process will provide a test.
Loral’s pre-packaged bankruptcy provides a clear path for the disposal of its North American satellite fleet. Loral has signed an agreement with Intelsat to purchase the satellites for about $1.1 billion. If any third party submits a higher bid for those assets prior to Oct. 15, Loral will notify the bankruptcy court. An auction is scheduled for Oct. 20. The judge will issue a ruling on Oct. 22 approving the sale of the North American assets to the auction winner. This process provides no opportunity for EchoStar to buy all of Loral’s assets.
Instead, EchoStar chose an alternative path of submitting a letter of interest (LOI) to the Loral board offering to purchase all of Loral’s assets. Those assets include the six North American satellites, other satellites and related assets, and the Space Systems/Loral satellite-manufacturing arm. The Loral board could have chosen to recommend EchoStar’s offer and to introduce it into the bankruptcy process but it opted to reject it. EchoStar’s only chance is to convince Loral’s creditors to pressure the board to reconsider the offer, but that appears unlikely.
Under the Intelsat bid, Loral’s senior creditors would be largely repaid. Furthermore, the probability of the Intelsat deal going forward, barring a stronger bid, is high. Intelsat is a reliable organization and the purchase agreement has few material contingencies. The creditors would receive their money upon court and regulatory approval. By comparison, EchoStar offer would require the negotiation of a detailed purchase agreement and likely drag out for months. EchoStar is a notoriously tough negotiator. Moreover, even with an agreement, EchoStar has a reputation for backing out of deals even after they have been struck. It is doubtful creditors would chase the speculative possibility of a deal with EchoStar.
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 [email protected]. 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.