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The Satellite News Financial Ticker

By | May 31, 2004

      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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