The Satellite News Financial Ticker
Week of July 18-24, 2003
|
Percentage Change
|
|||||
|
Symbol
|
July 24 Price
|
One Week
|
One Month
|
Three Month
|
Year to Date
|
Operators
|
||||||
APT SATELLITE HLDGS | ATS |
3.05
|
(17.6)
|
38.0
|
160.7
|
77.3
|
ASIASAT TELECOM | SAT |
16.55
|
(3.0)
|
(1.5)
|
18.6
|
45.3
|
BRITISH SKY BROADCASTING | BSY |
45.50
|
0.6
|
1.3
|
5.8
|
13.6
|
ECHOSTAR COMM -CL A | DISH |
36.42
|
(2.2)
|
2.3
|
22.3
|
63.6
|
HUGHES ELEC (GM -CL H) | GMH |
13.65
|
(1.1)
|
5.8
|
19.2
|
27.6
|
LORAL SPACE & COMM | LOR |
0.22
|
(45.6)
|
(92.6)
|
(91.6)
|
(94.9)
|
NEWS CORP | NWS |
30.41
|
(0.5)
|
0.9
|
6.9
|
15.8
|
NEW SKIES SATELLITES | NSK |
5.54
|
3.2
|
(5.0)
|
27.4
|
33.5
|
PANAMSAT | SPOT |
17.20
|
(5.0)
|
(8.3)
|
(0.6)
|
17.5
|
PASIFIK SATELIT NUSANTARA | PSNRY |
0.07
|
(51.7)
|
(50.0)
|
(48.1)
|
(53.3)
|
PEGASUS COMMUNICATIONS | PGTV |
34.16
|
8.8
|
25.6
|
47.2
|
160.8
|
rSTAR CORP | RSTRC |
0.54
|
(1.8)
|
8.0
|
(1.8)
|
125.0
|
SES GLOBAL | 549343 |
5.94
|
5.5
|
(1.0)
|
13.1
|
(7.2)
|
SIRIUS SATELLITE RADIO | SIRI |
1.65
|
(5.2)
|
(7.3)
|
111.8
|
157.8
|
XM SATELLITE RADIO | XMSR |
13.15
|
0.4
|
31.5
|
42.9
|
388.8
|
Operators’ Average |
100.00
|
(7.7)
|
(3.5)
|
22.3
|
64.7
|
|
Manufacturers
|
||||||
ANDREW | ANDW |
10.10
|
(8.18)
|
5.4
|
45.3
|
(1.8)
|
BALL | BLL |
49.81
|
9.96
|
8.8
|
(11.4)
|
(2.7)
|
BOEING | BA |
32.20
|
(3.56)
|
(6.6)
|
14.4
|
(2.4)
|
COM DEV INTL | CDV |
0.52
|
6.12
|
4.0
|
26.8
|
(13.3)
|
EMS TECHNOLOGIES | ELMG |
15.99
|
(1.30)
|
20.6
|
23.0
|
2.7
|
GARMIN | GRMN |
42.96
|
2.65
|
7.6
|
9.0
|
46.6
|
GILAT SAT NETWORKS | GILTF |
5.16
|
(9.79)
|
(3.0)
|
32.3
|
(33.8)
|
GLOBECOM | GCOM |
4.04
|
1.00
|
18.5
|
34.7
|
7.7
|
HARRIS | HRS |
31.60
|
6.40
|
(0.5)
|
9.5
|
20.2
|
HONEYWELL | HON |
28.27
|
1.87
|
4.0
|
22.9
|
17.8
|
KVH | KVHI |
20.89
|
(5.30)
|
6.1
|
58.3
|
142.9
|
LOCKHEED MARTIN | LMT |
51.55
|
2.91
|
6.9
|
6.0
|
(10.7)
|
LUCENT TECHNOLOGIES | LU |
1.82
|
8.33
|
(5.7)
|
5.8
|
44.4
|
MOTOROLA | MOT |
9.06
|
(2.89)
|
(3.3)
|
8.1
|
4.7
|
NERA | NERAY |
1.57
|
(3.91)
|
4.2
|
62.5
|
45.2
|
ORBITAL SCIENCES | ORB |
8.35
|
4.90
|
17.9
|
46.7
|
97.9
|
QUALCOMM | QCOM |
37.21
|
(0.29)
|
3.4
|
12.8
|
2.3
|
RAYTHEON | RTN |
32.32
|
(1.61)
|
(1.2)
|
6.7
|
5.1
|
ROCKWELL COLLINS | COL |
25.52
|
(3.08)
|
6.3
|
21.2
|
9.7
|
SCIENTIFIC-ATLANTA | SFA |
30.19
|
16.83
|
26.2
|
89.6
|
154.6
|
SKY FRAMES | SKYU |
1.30
|
4.00
|
(29.7)
|
–
|
(83.8)
|
STM WIRELESS | STMI |
0.01
|
(60.00)
|
–
|
(51.2)
|
(97.5)
|
TITAN | TTN |
14.40
|
28.11
|
43.1
|
83.0
|
38.5
|
TRIMBLE NAVIGATION | TRMB |
24.27
|
(4.82)
|
3.5
|
12.7
|
94.3
|
VIASAT | VSAT |
14.11
|
(3.76)
|
6.6
|
12.2
|
22.3
|
Manufacturers’ Average |
100.00
|
(0.6)
|
5.7
|
23.2
|
20.4
|
|
Nasdaq | comp |
1,701.45
|
(2.7)
|
5.6
|
16.0
|
27.4
|
SP 500 | sp50 |
981.60
|
(1.2)
|
(0.0)
|
6.8
|
11.6
|
SN Stock Price Average |
100.00
|
(3.3)
|
2.3
|
22.9
|
37.1
|
Wall Street Analysis
By Tom Watts, SG Cowen Securities
SBC Communications [NYSE: SBC] and EchoStar Communications [Nasdaq: DISH] announced a service bundling agreement last week. It looks like a bundle of joy.
SBC faces stiff competition in its core business. Its residential wireline customers are fleeing to cable, first for cable modem service instead of SBC’s DSL, and second for traditional wireline voice, which cable operators increasingly are rolling out. In San Diego, SBC has lost as many as 10 percent of its residential voice subscribers to Cox Cable [NYSE: COX]. On top of that, SBC and its wireline brethren face the threat of losing their voice business to wireless operators, as more and more of us make all of our calls on our cell phones.
The EchoStar deal throws a lifeline to SBC. The video/DSL/voice bundle offers much greater value than cable. EchoStar already prices comparable video packages 20 percent to 30 percent lower than cable. SBC has begun offering DSL — its DSL by Yahoo service — for only $29.95, compared with $39 to $49 for typical cable modem services. The combined bundle should be a winner, even with the lucrative bundle prices being pushed by cable.
For EchoStar, we view the subscribers coming from SBC almost as gravy. We expect SBC to pick up a portion of the SAC cost in turn for a share of revenue. SBC also will pick up customer service and billing. The arrangement should make the cash flow economics attractive to EchoStar.
The SBC deal should bring in more subscribers to the satellite fold. Many of our competitors expect satellite subscribers to top out at about 25 million. The SBC deal, plus others, should push that equilibrium closer to 30 million subscribers.
And the others? Verizon [NYSE: VZ], BellSouth [NYSE: BLS] and Qwest [NYSE: Q] all look like partner candidates for either EchoStar or DirecTV. Qwest last week announced bundled alliances with both satellite TV companies. Verizon’s Chairman Emeritus Charles Lee is slated to join DirecTV’s board. The ties between the companies could strengthen further.
The next stage of satellite-cable competition is here. Slowly, cable is catching up to satellite’s superior video offering. But we believe satellite still has the edge.
Tom Watts is a managing director and satellite analyst at SG Cowen Securities. He can be reached at 212/278-4260 or [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.