The Satellite News Financial Ticker
Week of Dec. 11 – 18, 2003
|
Percentage Change
|
|||||
Symbol
|
Dec. 18 Price
|
One Week
|
One Month
|
Three Month
|
Year to Date
|
|
Operators
|
||||||
APT SATELLITE HLDGS | ATS |
2.33
|
(12.1)
|
0.4
|
(2.9)
|
35.5
|
ASIASAT TELECOM | SAT |
18.27
|
2.4
|
9.0
|
13.8
|
60.4
|
BRITISH SKY BROADCASTING | BSY |
51.25
|
9.3
|
10.1
|
25.2
|
27.9
|
ECHOSTAR COMM -CL A | DISH |
32.91
|
4.5
|
(1.6)
|
(12.9)
|
47.8
|
HUGHES ELEC (GM -CL H) | GMH |
15.49
|
(1.0)
|
(0.8)
|
8.5
|
44.8
|
LORAL SPACE & COMM | LOR |
0.34
|
6.3
|
(5.6)
|
47.8
|
(92.1)
|
NEWS CORP | NWS |
34.84
|
4.2
|
1.4
|
1.3
|
32.7
|
NEW SKIES SATELLITES | NSK |
7.05
|
(1.4)
|
6.5
|
27.9
|
69.9
|
PANAMSAT | SPOT |
20.99
|
(2.5)
|
2.1
|
40.0
|
43.4
|
PASIFIK SATELIT NUSANTARA | PSNRY |
0.08
|
(55.9)
|
(6.2)
|
(54.5)
|
(50.0)
|
PEGASUS COMMUNICATIONS | PGTV |
19.06
|
2.4
|
(11.4)
|
32.0
|
45.5
|
SES GLOBAL | SESF.LU |
7.60
|
(4.3)
|
(2.6)
|
23.6
|
18.8
|
SIRIUS SATELLITE RADIO | SIRI |
2.18
|
2.6
|
1.2
|
18.2
|
239.8
|
XM SATELLITE RADIO | XMSR |
23.01
|
2.4
|
4.7
|
45.3
|
755.4
|
Operators’ Average |
100.00
|
(3.1)
|
0.5
|
15.2
|
91.4
|
|
Manufacturers
|
||||||
ANDREW | ANDW |
11.20
|
11.4
|
(2.9)
|
(20.6)
|
8.9
|
BALL | BLL |
58.39
|
1.4
|
6.2
|
9.2
|
14.1
|
BOEING | BA |
41.36
|
6.4
|
4.1
|
16.7
|
25.4
|
COM DEV INTL | *CDV |
2.84
|
(9.8)
|
(4.4)
|
42.0
|
186.9
|
EMS TECHNOLOGIES | ELMG |
19.64
|
(0.3)
|
(7.7)
|
9.7
|
26.1
|
GARMIN | GRMN |
54.41
|
6.0
|
5.2
|
22.0
|
85.7
|
GILAT SAT NETWORKS | GILTF |
4.78
|
3.5
|
(6.1)
|
6.7
|
(38.7)
|
GLOBECOM | GCOM |
5.45
|
(13.7)
|
(8.7)
|
29.1
|
45.3
|
HARRIS | HRS |
38.08
|
2.1
|
3.6
|
8.2
|
44.8
|
HONEYWELL | HON |
31.66
|
4.5
|
6.6
|
10.7
|
31.9
|
KVH | KVHI |
29.41
|
(0.6)
|
1.3
|
3.9
|
242.0
|
LOCKHEED MARTIN | LMT |
50.00
|
3.3
|
9.1
|
0.5
|
(13.4)
|
LUCENT TECHNOLOGIES | LU |
2.92
|
4.7
|
(2.7)
|
27.0
|
131.7
|
MOTOROLA | MOT |
13.39
|
6.7
|
3.0
|
25.8
|
54.8
|
NERA | NERAY |
2.07
|
(4.4)
|
5.1
|
(8.7)
|
91.0
|
ORBITAL SCIENCES | ORB |
12.43
|
15.5
|
33.7
|
32.2
|
194.6
|
QUALCOMM | QCOM |
51.56
|
5.8
|
10.4
|
16.5
|
41.7
|
RAYTHEON | RTN |
29.77
|
4.3
|
8.9
|
(1.8)
|
(3.2)
|
ROCKWELL COLLINS | COL |
29.24
|
8.7
|
10.8
|
15.5
|
25.7
|
SCIENTIFIC-ATLANTA | SFA |
27.69
|
5.7
|
0.7
|
(17.9)
|
133.5
|
SKY FRAMES | SKYU |
0.35
|
250.0
|
(41.7)
|
(71.5)
|
(95.6)
|
TITAN | TTN |
21.77
|
0.6
|
2.8
|
2.7
|
109.3
|
TRIMBLE NAVIGATION | TRMB |
33.39
|
13.5
|
19.4
|
27.1
|
167.3
|
VIASAT | VSAT |
18.70
|
1.7
|
(10.1)
|
12.0
|
62.0
|
Manufacturers’ Average |
100.00
|
13.6
|
1.9
|
8.2
|
65.5
|
|
Nasdaq Composite Index
|
||||||
Nasdaq | comp |
1,956.18
|
2.7
|
2.4
|
3.9
|
46.5
|
SP 500 | sp50 |
1,089.18
|
2.8
|
4.4
|
6.2
|
23.8
|
SN Stock Price Average |
100.00
|
7.5
|
1.4
|
10.8
|
75.0
|
Wall Street Analysis
By Tom Watts, SG Cowen Securities
When News Corp [NYSE: NWS] takes the keys to Hughes Electronics’ [NYSE: GMH] headquarters from General Motors [NYSE: GM], several new opportunities will be available for DirecTV to grow its subscriber base by leveraging the new owner’s assets. We all know this. Many of us have seen the prelude to what is to come as we watched an interview of New York Yankees shortstop Derek Jeter on Fox during the World Series, with the DirecTV logo conspicuously in the background.
One of the most widely anticipated moves by both News Corp and EchoStar Communications [Nasdaq: DISH] is the launch of an effective consumer satellite broadband platform to compete more vigorously with cable’s broadband solution. And yes, both direct broadcast satellite (DBS) operators have plans to bundle DSL through arrangements with the major telcos. However, this plan will not cater to all. We estimate that the market not served by either cable or DSL is about 30 million households, which implies that the total market for satellite broadband could exceed this estimate, particularly if prices fall.
Presently, DirecTV offers satellite broadband via the DirecWay platform of its sister company, Hughes Network Systems. DirecWay had amassed roughly 178,000 subscribers by the end of the third quarter. This venture has not been profitable to date, with losses estimated at about $50 million this year. However, we increasingly believe WildBlue could be used as the consumer broadband offering paired with DirecTV’s satellite TV service. Closure of News Corp’s acquisition of Hughes could facilitate this announcement, since News Corp has strong relationships with WildBlue shareholder Liberty Media [NYSE: L], and the rural distributor of DirecTV, the National Rural Telecommunications Cooperative, also holds a WildBlue stake. Hughes Electronics already has the SpaceWay satellites under construction. However, that proposed service primarily is geared toward the enterprise market. Thus, DirecTV needs to explore other options, such as WildBlue, to serve the consumer market with competitive pricing.
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.