|
Week of Feb. 21 – 27, 2003
|
Percentage Change
|
|||||
|
|
Symbol
|
Feb. 27 Price
|
One Week
|
One Month
|
Three Month
|
Year to Date
|
|
Operators
|
||||||
| APT SATELLITE HLDGS | ATS |
1.57
|
(0.6)
|
(10.3)
|
(12.8)
|
(8.7)
|
| ASIASAT TELECOM | SAT |
12.38
|
(5.9)
|
1.1
|
(6.9)
|
8.7
|
| BRITISH SKY BROADCASTING | BSY |
37.90
|
(2.0)
|
(4.9)
|
(4.1)
|
(5.4)
|
| ECHOSTAR COMM -CL A | DISH |
26.22
|
(1.0)
|
11.2
|
34.1
|
17.8
|
| GENERAL ELECTRIC | GE |
23.95
|
2.6
|
3.9
|
(9.1)
|
(1.6)
|
| GILAT COMMUNICATIONS | GICOF |
0.18
|
75.0
|
(37.5)
|
(7.9)
|
16.7
|
| GLOBALSTAR TELECOM | GSTRF |
0.07
|
20.7
|
–
|
(33.3)
|
34.6
|
| HUGHES ELEC (GM -CL H) | GMH |
10.18
|
1.6
|
(3.0)
|
(3.5)
|
(4.9)
|
| IRIDIUM WORLD COMM | IRIDF |
0.11
|
–
|
7.7
|
(34.4)
|
(4.5)
|
| LORAL SPACE & COMM | LOR |
0.36
|
(5.3)
|
(14.3)
|
(36.8)
|
(16.3)
|
| NEWS CORP | NWS |
24.73
|
(5.1)
|
(9.7)
|
(7.4)
|
(5.8)
|
| NEW SKIES SATELLITES | NSK |
4.27
|
(10.1)
|
8.7
|
15.7
|
2.9
|
| PANAMSAT | SPOT |
13.55
|
0.4
|
(3.6)
|
(27.5)
|
(7.4)
|
| PASIFIK SATELIT NUSANTARA | PSNRY |
0.16
|
–
|
14.3
|
6.7
|
6.7
|
| PEGASUS COMMUNICATIONS | PGTV |
15.91
|
(4.5)
|
32.4
|
31.5
|
21.5
|
| SES GLOBAL | SES.LU |
4.64
|
(6.6)
|
(3.3)
|
(32.4)
|
(27.5)
|
| SIRIUS SATELLITE RADIO | SIRI |
0.77
|
(9.4)
|
(39.4)
|
(14.4)
|
20.3
|
| XM SATELLITE RADIO | XMSR |
4.70
|
9.8
|
–
|
85.0
|
74.7
|
| Operators Index |
100.00
|
3.3
|
(2.6)
|
(3.2)
|
6.8
|
|
|
Manufacturers
|
||||||
| ANDREW | ANDW |
7.61
|
0.3
|
(20.6)
|
(27.5)
|
(26.0)
|
| BALL | BLL |
51.96
|
(2.7)
|
1.4
|
9.6
|
1.5
|
| BOEING | BA |
27.90
|
(7.6)
|
(10.0)
|
(17.1)
|
(15.4)
|
| COM DEV INTL | *CDV |
0.85
|
(2.3)
|
(17.5)
|
(22.7)
|
(14.1)
|
| GILAT SAT NETWORKS | GILTF |
0.39
|
8.5
|
–
|
(11.4)
|
–
|
| GLOBECOM | GCOM |
3.12
|
(9.6)
|
0.6
|
(13.1)
|
(16.8)
|
| HARRIS | HRS |
30.01
|
(0.3)
|
2.1
|
14.4
|
14.1
|
| HONEYWELL | HON |
23.14
|
(1.5)
|
(1.8)
|
(3.7)
|
(3.6)
|
| KVH | KVHI |
9.99
|
(13.9)
|
(11.1)
|
27.1
|
16.2
|
| LOCKHEED MARTIN | LMT |
45.89
|
(3.8)
|
(9.8)
|
(10.8)
|
(20.5)
|
| LUCENT TECHNOLOGIES | LU |
1.61
|
(9.0)
|
(18.7)
|
(10.1)
|
27.8
|
| MOTOROLA | MOT |
8.24
|
(0.6)
|
(5.0)
|
(24.6)
|
(4.7)
|
| NERA | NERAY |
0.85
|
(16.6)
|
(29.7)
|
(30.3)
|
(21.8)
|
| NII NORSAT INTL | NSATF |
0.92
|
(1.1)
|
(2.1)
|
(8.9)
|
(7.5)
|
| ORBITAL SCIENCES | ORB |
5.70
|
8.0
|
5.9
|
24.5
|
35.1
|
| QUALCOMM | QCOM |
34.13
|
(4.0)
|
(7.3)
|
(15.4)
|
(6.2)
|
| RAYTHEON | RTN |
27.41
|
(5.5)
|
(9.1)
|
(2.1)
|
(10.9)
|
| ROCKWELL COLLINS | COL |
19.98
|
(3.4)
|
(2.8)
|
(10.0)
|
(14.1)
|
| SCIENTIFIC-ATLANTA | SFA |
12.90
|
0.3
|
7.4
|
(3.4)
|
8.8
|
| STM WIRELESS | STMI |
0.03
|
(87.5)
|
(88.9)
|
(90.9)
|
(85.0)
|
| TITAN | TTN |
8.21
|
(26.8)
|
(27.2)
|
(27.0)
|
(21.1)
|
| TRIMBLE NAVIGATION | TRMB |
16.65
|
(0.6)
|
12.8
|
20.0
|
33.3
|
| VIASAT | VSAT |
11.02
|
8.6
|
(11.5)
|
(3.3)
|
(4.5)
|
| Manufacturers Index |
100.00
|
(7.4)
|
(10.6)
|
(10.3)
|
(5.9)
|
|
| Nasdaq Composite Index | COMP |
1,323.96
|
(0.8)
|
(1.4)
|
(8.3)
|
(0.9)
|
| S & P 500 | SP50 |
837.28
|
(0.9)
|
(2.8)
|
(8.3)
|
(4.8)
|
| SN Financial Ticker Index* |
100.00
|
(2.7)
|
(7.1)
|
(7.2)
|
(0.3)
|
|
|
* A composite index; all indices are capitalization-weighted, with a base value of 100 on 1/2/96. |
||||||
Wall Street Analysis
By Tom Watts, SG Cowen Securities
Plans by News Corp [NWS] and Liberty Media [L] to bid separately for DirecTV Inc., rather than as a team, added another contender in the battle to acquire the largest U.S. satellite TV services provider. Two weeks ago, SBC Communications [SBC] reportedly was in the midst of exploring a DirecTV purchase. In principle, more bidders should mean a higher price for General Motors’ [GM] stake in DirecTV’s parent company, Hughes Electronics Corp. [GMH]. But there is a question whether Hughes other shareholders would get the same price.
There is a risk that either News Corp or Liberty Media would buy only GM’s 30 percent stake in Hughes. Such a move would remove the cloud of uncertainty over Hughes’ future and lift its stock a little. But it might not be good news for Hughes’ public shareholders.
At the same time, a recent DirecTV debt filing at the Securities and Exchange Commission has made the unit into a separate reporting company from Hughes. The increased independence for DirecTV raises the possibility that News Corp might offer to buy just Hughes’ crown jewel, DirecTV. The upside for public shareholders out of this deal is unclear. Even the addition of Liberty to this auction might not help public shareholders much.
SBC raises a more intriguing possibility. The chances of a serious SBC bid are low. However, reports last week about the possible structure such a bid might take suggests this deal could offer the most to public shareholders. The Wall Street Journal reported that a bid from SBC would:
- Include all of Hughes, not just GM’s stake. A bid for all of Hughes would precede a possible cash buyout from shareholders if SBC offers cash. A merger then could take place as part of a new special-purpose entity similar to what News Corp is proposing.
- Include compensation for GM’s tax liability. This statement suggests SBC would not try to do a complex tax-free spin-off. Instead, SBC would pay cash. Moreover, SBC is serious about making its offer competitive with a News Corp or Liberty deal.
The drama is far from over. But as interest heats up and bidders multiply, the prospect for an acquisition of Hughes that would benefit all its shareholders appears on the rise.
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 . 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.
