Latest News
The Satellite News Financial Ticker
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Week of April 4 – 10, 2003
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Percentage Change
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|||||
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Symbol
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April 10 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 |
1.16
|
(25.2)
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(26.6)
|
(30.5)
|
(32.6)
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| ASIASAT TELECOM | SAT |
13.65
|
7.1
|
11.0
|
14.4
|
19.8
|
| BRITISH SKY BROADCASTING | BSY |
41.00
|
(0.7)
|
5.0
|
(3.5)
|
2.3
|
| ECHOSTAR COMM -CL A | DISH |
27.99
|
(5.2)
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(2.6)
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11.7
|
25.7
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| GENERAL ELECTRIC | GE |
27.32
|
1.0
|
12.4
|
5.5
|
12.2
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| GILAT COMMUNICATIONS | GICOF |
0.07
|
(60.0)
|
(60.0)
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(46.2)
|
(53.3)
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| GLOBALSTAR TELECOM | GSTRF |
0.07
|
(9.7)
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–
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–
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25.0
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| HUGHES ELEC (GM -CL H) | GMH |
10.28
|
(11.0)
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2.6
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(14.2)
|
(3.9)
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| IRIDIUM WORLD COMM | IRIDF |
0.08
|
–
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(30.2)
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(25.0)
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(31.8)
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| LORAL SPACE & COMM | LOR |
0.26
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(13.3)
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(16.1)
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(42.2)
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(39.5)
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| NEWS CORP | NWS |
25.51
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(6.8)
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6.8
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(11.2)
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(2.8)
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| NEW SKIES SATELLITES | NSK |
4.39
|
4.5
|
7.9
|
10.3
|
5.8
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| PANAMSAT | SPOT |
14.98
|
0.1
|
11.5
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(1.8)
|
2.3
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| PASIFIK SATELIT NUSANTARA | PSNRY |
0.16
|
–
|
(3.1)
|
10.7
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3.3
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| PEGASUS COMMUNICATIONS | PGTV |
19.65
|
47.5
|
26.6
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41.6
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50.0
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| SES GLOBAL | SES.LU |
5.29
|
11.1
|
23.9
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3.7
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(17.3)
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| SIRIUS SATELLITE RADIO | SIRI |
0.63
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(10.0)
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32.6
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(19.2)
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(1.6)
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| XM SATELLITE RADIO | XMSR |
6.17
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(1.0)
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36.5
|
92.8
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129.4
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| Operators’ Average |
100.00
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(4.0)
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2.1
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(0.2)
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5.2
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|
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Manufacturers
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||||||
| ANDREW | ANDW |
6.04
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3.8
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(20.3)
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(45.5)
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(41.2)
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| BALL | BLL |
56.78
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(2.6)
|
9.6
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10.3
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10.9
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| BOEING | BA |
27.13
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1.8
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5.0
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(20.0)
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(17.8)
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| COM DEV INTL | *CDV |
0.82
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2.5
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–
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(28.7)
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(17.2)
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| GILAT SAT NETWORKS | GILTF |
0.24
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(4.0)
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(14.3)
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(42.9)
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(38.5)
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| GLOBECOM | GCOM |
2.82
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(9.0)
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(6.0)
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(23.1)
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(24.8)
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| HARRIS | HRS |
27.21
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(2.3)
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(9.9)
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(1.8)
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3.5
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| HONEYWELL | HON |
21.84
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(2.2)
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0.4
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(14.9)
|
(9.0)
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| KVH | KVHI |
12.75
|
1.0
|
28.0
|
6.1
|
48.3
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| LOCKHEED MARTIN | LMT |
44.71
|
(6.2)
|
2.6
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(19.0)
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(22.6)
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| LUCENT TECHNOLOGIES | LU |
1.50
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2.0
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(6.8)
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(9.1)
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19.0
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| MOTOROLA | MOT |
8.00
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(7.1)
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(0.1)
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(19.2)
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(7.5)
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| NERA | NERAY |
0.92
|
11.1
|
18.6
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(19.5)
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(15.1)
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| NII NORSAT INTL | NSATF |
0.83
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(4.6)
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(8.8)
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(7.8)
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(16.6)
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| ORBITAL SCIENCES | ORB |
5.33
|
4.7
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(10.4)
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22.8
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26.3
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| QUALCOMM | QCOM |
32.35
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(5.4)
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(8.0)
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(16.4)
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(11.1)
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| RAYTHEON | RTN |
27.95
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(3.5)
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10.9
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(9.9)
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(9.1)
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| ROCKWELL COLLINS | COL |
18.62
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(1.1)
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1.6
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(21.8)
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(19.9)
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| SCIENTIFIC-ATLANTA | SFA |
14.36
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(4.3)
|
15.1
|
9.5
|
21.1
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| STM WIRELESS | STMI |
0.00
|
900.0
|
(90.0)
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(99.6)
|
(99.5)
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| TITAN | TTN |
7.19
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(2.7)
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(1.8)
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(39.6)
|
(30.9)
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| TRIMBLE NAVIGATION | TRMB |
19.75
|
(2.5)
|
18.9
|
49.6
|
58.1
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| VIASAT | VSAT |
11.54
|
1.5
|
6.2
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(9.1)
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–
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| Manufacturers’ Average |
100.00
|
37.9
|
(2.6)
|
(15.2)
|
(8.4)
|
|
| Nasdaq Composite Index | COMP |
1,365.58
|
(2.2)
|
4.6
|
(5.1)
|
2.3
|
| S & P 500 | SP50 |
871.57
|
(1.1)
|
5.1
|
(6.0)
|
(0.9)
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| SN Stock Price Average |
100.00
|
19.5
|
(0.5)
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(8.6)
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(2.5)
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|
Wall Street Analysis
By Tom Watts, SG Cowen Securities
General Motors [NYSE: GM] saved its last dance for News Corp Chairman Rupert Murdoch, who struck a deal to buy Hughes Electronics [NYSE: GMH], including its DirecTV unit, in a transaction that sidestepped the interests of Hughes’ public shareholders. After nearly three years of trying, GM finally agreed to sell its stake in Hughes to News Corp. During that time, GM has had an on again, off again relationship with News Corp as investors waited patiently on the sidelines to see if GM could seal a deal.
That time arrived last week. News Corp has agreed to buy — pending shareholder and regulatory approval — a 34 percent ownership interest in Hughes for about $6.6 billion. GM wins because it will be paid mostly in cash in a tax-free sale. Although GM’s press release indicated that Hughes shareholders would receive a 22 percent premium on their shares, it may not have been clear that only 17.5 percent of those shares would receive the upside. According to SG Cowen, the premium only will be 3.8 percent, based on Wednesday’s closing price. In addition, the transaction could be partly taxable to Hughes shareholders. The good news is that there will be no more tracking stock. Hughes shares will be converted into an asset-based security and holders also will receive partial payment in shares of News Corp’s preferred American depositary receipts.
Although the deal is not necessarily good news for Hughes shareholders in the short term, we are bullish on the future prospects of a new Hughes platform. We expect News Corp to strengthen the DirecTV business through extensive experience gained from operating other direct broadcast satellite platforms around the world. DirecTV also will gain from programming synergies with Fox.
With the acquisition of Hughes, News Corp acquires not only DirecTV, but also PanAmSat [Nasdaq: SPOT], Hughes Network Systems and DirecTV Latin America. What will we all do now that the soap opera appears to have ended? Stay tuned. The battle for market share between a Murdoch-led DirecTV and EchoStar Communications [Nasdaq: DISH] Chairman Charlie Ergen could give a whole new meaning to reality television.
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 [email protected]. 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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