Latest News
The Satellite News Financial Ticker
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Week of Feb. 28 – March 6, 2003
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Percentage Change
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Symbol
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March 6 Price
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One Week
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One Month
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Three Month
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Year to Date
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|
Operators
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| APT SATELLITE HLDGS | ATS |
1.60
|
2.6
|
1.9
|
(15.8)
|
(7.0)
|
| ASIASAT TELECOM | SAT |
11.70
|
(4.2)
|
(5.5)
|
(14.3)
|
2.7
|
| BRITISH SKY BROADCASTING | BSY |
39.99
|
3.3
|
4.7
|
1.3
|
(0.2)
|
| ECHOSTAR COMM -CL A | DISH |
29.05
|
10.4
|
15.9
|
47.8
|
30.5
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| GENERAL ELECTRIC | GE |
23.95
|
2.5
|
4.1
|
(7.2)
|
(1.6)
|
| GILAT COMMUNICATIONS | GICOF |
0.10
|
(42.9)
|
–
|
(33.8)
|
(33.3)
|
| GLOBALSTAR TELECOM | GSTRF |
0.06
|
(15.3)
|
(10.3)
|
(32.2)
|
17.3
|
| HUGHES ELEC (GM -CL H) | GMH |
9.95
|
0.2
|
(0.3)
|
(10.8)
|
(7.0)
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| IRIDIUM WORLD COMM | IRIDF |
0.11
|
2.4
|
2.4
|
(28.3)
|
(2.3)
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| LORAL SPACE & COMM | LOR |
0.32
|
(13.5)
|
(11.1)
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(33.3)
|
(25.6)
|
| NEWS CORP | NWS |
24.09
|
(2.5)
|
(6.7)
|
(11.6)
|
(8.2)
|
| NEW SKIES SATELLITES | NSK |
4.10
|
(3.8)
|
1.5
|
26.2
|
(1.2)
|
| PANAMSAT | SPOT |
13.15
|
0.9
|
(2.4)
|
(29.4)
|
(10.2)
|
| PASIFIK SATELIT NUSANTARA | PSNRY |
0.16
|
–
|
–
|
6.7
|
6.7
|
| PEGASUS COMMUNICATIONS | PGTV |
15.49
|
(8.4)
|
12.7
|
38.2
|
18.2
|
| SES GLOBAL | SES.LU |
4.45
|
(5.3)
|
(6.3)
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(35.7)
|
(30.5)
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| SIRIUS SATELLITE RADIO | SIRI |
0.48
|
(38.3)
|
(49.4)
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(40.6)
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(24.8)
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| XM SATELLITE RADIO | XMSR |
4.58
|
2.3
|
15.9
|
55.8
|
70.3
|
| Operators Index |
100.00
|
(6.1)
|
(1.8)
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(6.5)
|
(0.3)
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|
|
Manufacturers
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||||||
| ANDREW | ANDW |
7.49
|
(1.8)
|
(17.9)
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(32.5)
|
(27.1)
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| BALL | BLL |
51.13
|
(1.9)
|
(4.4)
|
4.7
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(0.1)
|
| BOEING | BA |
26.16
|
(6.0)
|
(14.7)
|
(20.6)
|
(20.7)
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| COM DEV INTL | *CDV |
0.79
|
(7.1)
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(17.7)
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(42.8)
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(20.2)
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| GILAT SAT NETWORKS | GILTF |
0.30
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(23.1)
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(14.3)
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(34.8)
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(23.1)
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| GLOBECOM | GCOM |
3.02
|
(5.9)
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(15.4)
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(13.7)
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(19.5)
|
| HARRIS | HRS |
30.79
|
3.0
|
1.4
|
19.9
|
17.1
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| HONEYWELL | HON |
21.90
|
(4.5)
|
(8.9)
|
(10.0)
|
(8.8)
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| KVH | KVHI |
10.24
|
4.3
|
(6.7)
|
13.7
|
19.1
|
| LOCKHEED MARTIN | LMT |
44.57
|
(2.9)
|
(11.9)
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(12.6)
|
(22.8)
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| LUCENT TECHNOLOGIES | LU |
1.54
|
2.0
|
(3.1)
|
(9.9)
|
22.2
|
| MOTOROLA | MOT |
8.05
|
(1.3)
|
2.9
|
(18.3)
|
(6.9)
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| NERA | NERAY |
0.89
|
5.1
|
(20.2)
|
(28.5)
|
(17.8)
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| NII NORSAT INTL | NSATF |
0.96
|
1.1
|
6.7
|
(2.0)
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(3.5)
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| ORBITAL SCIENCES | ORB |
5.77
|
3.2
|
5.7
|
27.9
|
36.7
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| QUALCOMM | QCOM |
34.98
|
4.5
|
(3.6)
|
(11.6)
|
(3.9)
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| RAYTHEON | RTN |
25.42
|
(7.5)
|
(16.1)
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(9.9)
|
(17.3)
|
| ROCKWELL COLLINS | COL |
18.64
|
(5.3)
|
(9.6)
|
(9.9)
|
(19.9)
|
| SCIENTIFIC-ATLANTA | SFA |
12.39
|
(0.9)
|
3.7
|
(2.8)
|
4.5
|
| STM WIRELESS | STMI |
0.01
|
(75.0)
|
(97.7)
|
(98.6)
|
(97.5)
|
| TITAN | TTN |
7.95
|
(0.5)
|
(28.4)
|
(25.7)
|
(23.6)
|
| TRIMBLE NAVIGATION | TRMB |
16.86
|
1.1
|
5.0
|
25.4
|
35.0
|
| VIASAT | VSAT |
10.75
|
(1.3)
|
(3.2)
|
(3.5)
|
(6.8)
|
| Manufacturers Index |
100.00
|
(5.3)
|
(11.7)
|
(12.9)
|
(8.9)
|
|
| Nasdaq Composite Index | COMP |
1,302.89
|
(0.1)
|
0.1
|
(7.6)
|
(2.4)
|
| S & P 500 | SP50 |
822.10
|
(0.7)
|
(2.5)
|
(9.3)
|
(6.6)
|
| SN Financial Ticker Index* |
100.00
|
(5.6)
|
(7.3)
|
(10.1)
|
(5.2)
|
|
|
* A composite index; all indices are capitalization-weighted, with a base value of 100 on 1/2/96. |
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Wall Street Analysis
By Tom Watts, SG Cowen Securities
EchoStar Communications Corp. [DISH] soundly whipped cable TV once again with its fourth quarter subscriber additions. EchoStar and rival satellite TV service provider DirecTV Inc. together captured 96 percent of net multichannel video subscriber additions in the fourth quarter.
The results show no sign that multivideo service subscribers are ready to bolt for new digital cable services.
Of the net new satellite TV subscribers, EchoStar nabbed 61 percent, while DirecTV snagged the remaining 39 percent.
During the fourth quarter, the “Big 7” cable operators netted only 29,000 new subscribers for basic service, compared to 656,000 for the two satellite TV players. Even the meager 29,000 marked the first time in the last three quarters that cable subscribership grew, rather than shrank. Our analysis shows that basic subscribers for the Big 7 fell by 482,000 in the second quarter, followed by an additional loss of 151,000 subscribers in the third quarter.
Has cable given up the game? Hardly. Cable has taken a different strategy: 1) continue raising prices, and 2) sell more services to existing customers. Our January price analysis showed cable typically charges 18 to 29 percent more than satellite TV for comparable programming packages. Given that cable still has an 80 percent market share, relative to satellites’ 20 percent, it makes more sense to raise prices than to enter a price war with satellite rivals.
On the services side, cable is pushing add-on products to its basic service. The cable industry’s new metric – net revenue generating units (NRGUs), which separately counts TV subscriptions, cable modem subscriptions and telephony subscriptions – showed an increase of 2.4 million in the fourth quarter. The cable industry’s strategy appears to be working, even while satellite TV subscribership continues to grow.
Satellite and cable are headed in different directions in the short term. Satellite plans to offer the best price for a package of video services. Cable plans to offer an attractive bundle of services at a premium price. This avoidance of direct competition promises continued growth for satellite TV over the coming year.
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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