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The Satellite News Financial Ticker

By | May 24, 2004

      Week of May 14 – 20, 2004
      Percentage Change
      Symbol
      May 20 Price
      One Week
      One Month
      Three Month
      Year to Date
      Operators
      APT SATELLITE HLDGS ATS
      1.69
      (1.2)
      (10.6)
      (32.7)
      (29.0)
      ASIASAT TELECOM SAT
      15.42
      (6.3)
      (6.3)
      (25.5)
      (18.8)
      BRITISH SKY BROADCASTING BSY
      44.12
      (0.7)
      (13.2)
      (20.2)
      (13.4)
      ECHOSTAR COMM -CL A DISH
      31.18
      3.3
      (6.1)
      (15.0)
      (8.3)
      THE DIRECTV GROUP DTV
      17.05
      (1.1)
      (2.5)
      0.1
      3.0
      LORAL SPACE & COMM LOR
      0.28
      (15.2)
      (41.7)
      (62.7)
      (11.1)
      NEWS CORP NWS
      35.52
      (0.3)
      (5.8)
      (6.6)
      (1.6)
      NEW SKIES SATELLITES NSK
      6.90
      (2.8)
      (2.3)
      0.3
      (3.6)
      PANAMSAT SPOT
      23.09
      (0.5)
      (6.9)
      1.3
      7.1
      PASIFIK SATELIT NUSANTARA PSNRY
      0.22
      57.1
      (8.3)
      340.0
      PEGASUS COMMUNICATIONS PGTV
      12.50
      (27.7)
      (50.3)
      (52.1)
      (55.5)
      SES GLOBAL SESF.LU
      6.65
      (4.3)
      (11.9)
      (15.8)
      (16.9)
      SIRIUS SATELLITE RADIO SIRI
      3.10
      (2.2)
      (22.1)
      6.9
      (1.9)
      XM SATELLITE RADIO XMSR
      23.13
      1.6
      (15.6)
      (1.2)
      (12.0)
      Operators’ Average
      100.00
      (4.1)
      (9.9)
      (16.5)
      12.7
      Manufacturers
      ANDREW ANDW
      17.62
      1.4
      (13.9)
      6.7
      52.0
      BALL BLL
      65.05
      0.5
      (6.6)
      0.5
      9.2
      BOEING BA
      42.92
      (1.5)
      3.4
      (3.6)
      1.9
      COM DEV INTL *CDV
      2.31
      (0.9)
      (12.8)
      (20.3)
      (19.8)
      EMS TECHNOLOGIES ELMG
      18.23
      (3.1)
      (4.0)
      (17.9)
      (11.2)
      GARMIN GRMN
      31.54
      8.3
      (22.6)
      (32.3)
      (42.1)
      GILAT SAT NETWORKS GILTF
      5.10
      (12.1)
      (36.5)
      (32.1)
      4.3
      GLOBECOM GCOM
      5.50
      (1.1)
      1.1
      (8.6)
      15.8
      HARRIS HRS
      43.72
      1.9
      (9.9)
      (11.5)
      15.2
      HONEYWELL HON
      33.02
      (1.1)
      (4.6)
      (7.6)
      (1.2)
      KVH KVHI
      12.91
      (4.5)
      (3.1)
      (24.7)
      (53.2)
      LOCKHEED MARTIN LMT
      46.61
      (2.7)
      (0.7)
      (3.8)
      (9.3)
      LUCENT TECHNOLOGIES LU
      3.25
      (3.6)
      (24.9)
      (19.4)
      14.4
      MOTOROLA MOT
      19.25
      2.1
      15.3
      10.6
      37.5
      ORBITAL SCIENCES ORB
      12.27
      (3.0)
      (3.9)
      (7.8)
      2.1
      QUALCOMM QCOM
      64.18
      0.4
      (3.6)
      9.2
      19.0
      RAYTHEON RTN
      32.51
      0.9
      3.4
      1.5
      8.2
      ROCKWELL COLLINS COL
      29.69
      (1.4)
      (9.1)
      (9.1)
      (1.1)
      SCIENTIFIC-ATLANTA SFA
      32.25
      (1.0)
      0.5
      (1.2)
      18.1
      SKY FRAMES SKYU
      0.10
      TITAN TTN
      19.14
      0.3
      (2.2)
      (8.8)
      (12.2)
      TRIMBLE NAVIGATION TRMB
      24.13
      (6.0)
      5.0
      7.3
      (2.8)
      VIASAT VSAT
      22.33
      1.6
      (7.7)
      (14.1)
      16.7
      Manufacturers’ Average
      100.00
      (1.1)
      (6.0)
      (8.1)
      2.7
      Nasdaq Composite Index
      Nasdaq comp
      1,896.59
      (1.5)
      (6.1)
      (7.3)
      (5.3)
      SP 500 sp50
      1,089.18
      (0.7)
      (4.1)
      (5.0)
      (2.0)
      SN Stock Price Average
      100.00
      (2.2)
      (7.4)
      (11.3)
      6.5

      Wall Street Analysis

      By Tom Watts, SG Cowen Securities

      Reports suggest that DirecTV will be issuing offering documents for the remaining parts of Hughes Network Systems (HNS) shortly, following the recent sale of HNS’s settop box business to Thomson. The sale of HNS certainly promises to continue the re-focusing of DirecTV on its satellite television business. However, the HNS asset sales also point to a possible re-shaping of other segments of the industry.

      HNS’s DirecWay business could go to Liberty Media or to WildBlue. Liberty could even swap a portion of its holdings of News Corp. shares back to DirecTV as part of the purchase. DirecWay’s roughly 190,000 subscribers could also help jump-start the WildBlue venture, which plans to begin commercial broadband service later this year. Of course, as part of this deal, we could also see DirecTV choose WildBlue as its broadband partner. DirecTV President and CEO Chase Carey has indicated he wants to partner for the broadband offering that would be bundled with DirecTV.

      HNS’s VSAT business offers intriguing possibilities for the enterprise business. San Diego area company ViaSat has indicated potential interest in HNS’s VSAT manufacturing business. ViaSat CEO Mark Dankberg recently commented that ViaSat could partner with a financial buyer, having the financial buyer purchase the service portion of the VSAT business and ViaSat purchase the manufacturing side. The deal could face one potential hitch. With ViaSat’s recent momentum in the VSAT market, we believe it has already climbed to the #2 position worldwide, after Hughes. A combination with Hughes could present antitrust issues. Nevertheless, several other competitors remain in the market, so the deal may pass antitrust muster. These competitors include Alcatel, Gilat, and EMS.

      The Spaceway system may offer the most intriguing HNS asset. DirecTV recently indicated it would not give up the Spaceway spectrum. It also may have use for the Spaceway satellites, at least on an interim basis. This may suggest no sale of Spaceway. Or it could suggest a Spaceway sale to an operator such as Intelsat.

      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 tom.watts@sgcowen.com. 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.

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