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The Satellite News Financial Ticker

By | May 17, 2004

      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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