Latest News
The Satellite News Financial Ticker
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Week of April 11 – 17, 2003
|
Percentage Change
|
|||||
|
|
Symbol
|
April 17 Price
|
One Week
|
One Month
|
Three Month
|
Year to Date
|
|
Operators
|
||||||
| APT SATELLITE HLDGS | ATS |
1.33
|
9.9
|
(11.9)
|
(25.7)
|
(22.7)
|
| ASIASAT TELECOM | SAT |
13.50
|
(1.8)
|
8.0
|
8.9
|
18.5
|
| BRITISH SKY BROADCASTING | BSY |
41.80
|
2.7
|
4.2
|
(3.7)
|
4.3
|
| ECHOSTAR COMM -CL A | DISH |
28.74
|
(0.9)
|
(1.6)
|
8.4
|
29.1
|
| GENERAL ELECTRIC | GE |
28.49
|
4.4
|
11.1
|
13.8
|
17.0
|
| GILAT COMMUNICATIONS | GICOF |
0.07
|
–
|
(60.0)
|
(72.0)
|
(53.3)
|
| GLOBALSTAR TELECOM | GSTRF |
0.06
|
(7.7)
|
(3.2)
|
(21.1)
|
15.4
|
| HUGHES ELEC (GM -CL H) | GMH |
11.24
|
(2.1)
|
12.4
|
(3.1)
|
5.0
|
| IRIDIUM WORLD COMM | IRIDF |
0.15
|
103.3
|
35.6
|
45.2
|
38.6
|
| LORAL SPACE & COMM | LOR |
0.29
|
7.4
|
(3.3)
|
(27.5)
|
(32.6)
|
| NEWS CORP | NWS |
27.25
|
0.1
|
11.6
|
(5.4)
|
3.8
|
| NEW SKIES SATELLITES | NSK |
4.50
|
2.3
|
12.5
|
15.4
|
8.4
|
| PANAMSAT | SPOT |
16.80
|
13.1
|
18.7
|
10.2
|
14.8
|
| PASIFIK SATELIT NUSANTARA | PSNRY |
0.26
|
67.7
|
(3.7)
|
85.7
|
73.3
|
| PEGASUS COMMUNICATIONS | PGTV |
19.28
|
7.7
|
38.7
|
45.5
|
47.2
|
| SES GLOBAL | SES.LU |
5.20
|
2.0
|
29.7
|
9.5
|
(18.8)
|
| SIRIUS SATELLITE RADIO | SIRI |
0.73
|
12.3
|
78.0
|
(41.6)
|
14.1
|
| XM SATELLITE RADIO | XMSR |
7.08
|
14.6
|
60.5
|
82.5
|
163.2
|
| Operators’ Average |
100.00
|
13.1
|
13.2
|
6.9
|
18.1
|
|
|
Manufacturers
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||||||
| ANDREW | ANDW |
6.70
|
12.2
|
14.7
|
(38.1)
|
(34.8)
|
| BALL | BLL |
56.02
|
(0.8)
|
7.5
|
6.4
|
9.4
|
| BOEING | BA |
26.65
|
(3.0)
|
4.3
|
(20.4)
|
(19.2)
|
| COM DEV INTL | *CDV |
0.85
|
3.7
|
13.3
|
(27.4)
|
(14.1)
|
| GILAT SAT NETWORKS | GILTF |
4.50
|
(2.2)
|
(6.2)
|
(45.1)
|
(42.3)
|
| GLOBECOM | GCOM |
2.90
|
2.8
|
22.4
|
(13.4)
|
(22.7)
|
| HARRIS | HRS |
28.08
|
4.5
|
2.1
|
(10.5)
|
6.8
|
| HONEYWELL | HON |
22.56
|
0.5
|
0.4
|
(10.3)
|
(6.0)
|
| KVH | KVHI |
13.47
|
8.3
|
41.1
|
10.2
|
56.6
|
| LOCKHEED MARTIN | LMT |
45.36
|
0.0
|
0.4
|
(15.6)
|
(21.5)
|
| LUCENT TECHNOLOGIES | LU |
1.50
|
(0.7)
|
(0.7)
|
(11.2)
|
19.0
|
| MOTOROLA | MOT |
7.90
|
(0.6)
|
(3.5)
|
(13.5)
|
(8.7)
|
| NERA | NERAY |
0.95
|
3.5
|
7.3
|
(24.7)
|
(12.1)
|
| NII NORSAT INTL | NSATF |
0.87
|
(2.2)
|
8.8
|
(10.3)
|
(12.6)
|
| ORBITAL SCIENCES | ORB |
5.40
|
2.9
|
0.4
|
4.0
|
28.0
|
| QUALCOMM | QCOM |
32.94
|
2.2
|
(12.1)
|
(14.2)
|
(9.5)
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| RAYTHEON | RTN |
28.98
|
2.4
|
11.0
|
(3.9)
|
(5.8)
|
| ROCKWELL COLLINS | COL |
20.55
|
11.1
|
12.3
|
(6.5)
|
(11.7)
|
| SCIENTIFIC-ATLANTA | SFA |
14.95
|
4.7
|
20.0
|
9.9
|
26.1
|
| STM WIRELESS | STMI |
0.00
|
(50.0)
|
(50.0)
|
(99.8)
|
(99.8)
|
| TITAN | TTN |
7.13
|
(3.0)
|
(2.5)
|
(39.4)
|
(31.4)
|
| TRIMBLE NAVIGATION | TRMB |
21.20
|
10.7
|
27.8
|
50.7
|
69.7
|
| VIASAT | VSAT |
12.19
|
4.4
|
2.0
|
(7.9)
|
5.6
|
| Manufacturers’ Average |
100.00
|
0.5
|
5.2
|
(14.4)
|
(5.7)
|
|
| Nasdaq Composite Index | COMP |
1,425.50
|
5.1
|
6.4
|
0.1
|
6.7
|
| S & P 500 | SP50 |
893.52
|
3.2
|
7.2
|
(2.3)
|
1.6
|
| SN Stock Price Average |
100.00
|
6.0
|
8.7
|
(5.0)
|
4.7
|
|
Wall Street Analysis
By Tom Watts, SG Cowen Securities
General Motors’ [NYSE: GM] agreement to sell its interest in Hughes Electronics [NYSE: GMH] and its DirecTV unit to News Corp [NYSE: NWS] and its Fox Entertainment [NYSE: FOX] subsidiary has not caused the sea change in the satellite industry that one might expect. The share prices of Hughes, DirecTV rival EchoStar Communications [Nasdaq: DISH] and cable TV companies have moved very little. It looks as though we may have another waiting game until regulatory approvals come later this year to find out how this deal will change the industry. We expect the changes to be far-reaching. The question is, “Will they benefit Hughes shareholders?”
News Corp Chairman Rupert Murdoch vows to improve Hughes and DirecTV in several ways. First, he expects to bring monthly churn at DirecTV down from 1.5 percent to 1 percent, based on lessons learned in his other satellite TV businesses, particularly BSkyB in the United Kingdom. Such a reduction could boost Hughes’ equity value by 20 percent or more. This change would be a clear win for Hughes shareholders.
Second, Murdoch can leverage the programming assets of Fox and other businesses to differentiate the DirecTV product. Fox has had innumerable hit shows, including American Idol, Joe Millionaire, Married by America and the Simpsons. Fox News is the No. 1 news channel in America. Fox sports programming includes Fox Sports Net, the Speed Channel, NASCAR on Fox, FX and the company’s 60 percent ownership of 18 regional sports networks.
On a recent conference call, Murdoch repeatedly cited the No. 1 mission of DirecTV would be to deliver “value” to the subscriber. For that reason, we expect DirecTV to continue to exploit its price advantage over cable TV.
There is a concern about Fox’s programming relationship with DirecTV. Fox must offer comparable pricing for its programming to DirecTV’s competitors. Fox has the opportunity to raise prices across the board or negotiate concessions from all of its distributors. This situation could transfer economic benefits from DirecTV to Fox. We will have to wait until 2004 to see the results.
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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