The Satellite News Financial Ticker
Week of Aug. 8 – 14, 2003
|
Percentage Change
|
|||||
|
Symbol
|
Aug. 14 Price
|
One Week
|
One Month
|
Three Month
|
Year to Date
|
Operators
|
||||||
APT SATELLITE HLDGS | ATS |
2.65
|
0.8
|
(30.1)
|
58.7
|
54.1
|
ASIASAT TELECOM | SAT |
17.00
|
1.6
|
0.4
|
17.2
|
49.3
|
BRITISH SKY BROADCASTING | BSY |
45.52
|
0.9
|
0.7
|
2.2
|
13.6
|
ECHOSTAR COMM -CL A | DISH |
35.59
|
(0.4)
|
(2.7)
|
11.4
|
59.9
|
HUGHES ELEC (GM -CL H) | GMH |
13.72
|
2.0
|
1.3
|
10.2
|
28.2
|
LORAL SPACE & COMM | LOR |
0.22
|
–
|
(92.8)
|
(95.3)
|
(94.9)
|
NEWS CORP | NWS |
32.59
|
7.6
|
4.9
|
7.4
|
24.2
|
NEW SKIES SATELLITES | NSK |
5.78
|
4.5
|
12.5
|
5.5
|
39.3
|
PANAMSAT | SPOT |
16.36
|
0.9
|
(13.6)
|
(10.2)
|
11.7
|
PASIFIK SATELIT NUSANTARA | PSNRY |
0.07
|
(54.8)
|
(53.3)
|
(54.8)
|
(53.3)
|
PEGASUS COMMUNICATIONS | PGTV |
20.95
|
(39.8)
|
(35.7)
|
(30.8)
|
59.9
|
rSTAR CORP | RSTRC |
0.92
|
50.8
|
67.3
|
80.4
|
283.3
|
SES GLOBAL | SES.LU |
6.20
|
1.6
|
8.8
|
23.5
|
(3.1)
|
SIRIUS SATELLITE RADIO | SIRI |
1.65
|
(3.5)
|
(9.3)
|
34.1
|
157.8
|
XM SATELLITE RADIO | XMSR |
13.00
|
(2.0)
|
(2.5)
|
27.1
|
383.3
|
Operators’ Average |
100.00
|
(2.0)
|
(9.6)
|
5.8
|
67.5
|
|
Manufacturers
|
||||||
ANDREW | ANDW |
10.64
|
6.8
|
(6.5)
|
10.3
|
3.5
|
BALL | BLL |
50.08
|
3.3
|
13.8
|
(7.6)
|
(2.2)
|
BOEING | BA |
32.98
|
3.4
|
(6.3)
|
11.6
|
(0.0)
|
COM DEV INTL | CDV |
0.47
|
6.8
|
(3.1)
|
17.5
|
(21.7)
|
EMS TECHNOLOGIES | ELMG |
17.50
|
6.5
|
11.5
|
48.1
|
12.4
|
GARMEN LTD. | GRMN |
38.34
|
4.6
|
(10.4)
|
(19.9)
|
30.9
|
GILAT SAT NETWORKS | GILTF |
4.36
|
(0.2)
|
(31.3)
|
(0.9)
|
(44.1)
|
GLOBECOM | GCOM |
3.66
|
(1.6)
|
(8.0)
|
27.6
|
(2.4)
|
HARRIS | HRS |
31.28
|
1.2
|
2.9
|
6.8
|
18.9
|
HONEYWELL | HON |
28.47
|
3.1
|
3.3
|
15.0
|
18.6
|
KVH | KVHI |
22.14
|
25.7
|
(2.7)
|
31.4
|
157.4
|
LOCKHEED MARTIN | LMT |
50.49
|
(0.8)
|
2.2
|
1.9
|
(12.6)
|
LUCENT TECHNOLOGIES | LU |
1.82
|
5.2
|
(9.5)
|
(15.3)
|
44.4
|
MOTOROLA | MOT |
9.62
|
3.6
|
1.2
|
19.5
|
11.2
|
NERA | NERAY |
2.10
|
(2.7)
|
37.7
|
73.2
|
93.7
|
ORBITAL SCIENCES | ORB |
8.25
|
2.1
|
5.8
|
38.9
|
95.5
|
QUALCOMM | QCOM |
38.38
|
5.2
|
(0.7)
|
22.3
|
5.5
|
RAYTHEON | RTN |
31.11
|
2.7
|
(4.5)
|
(1.8)
|
1.2
|
ROCKWELL COLLINS | COL |
25.98
|
1.6
|
2.9
|
15.5
|
11.7
|
SCIENTIFIC-ATLANTA | SFA |
29.99
|
7.3
|
17.0
|
66.2
|
152.9
|
SKY FRAMES | SKYU |
1.20
|
33.3
|
(29.4)
|
(7.7)
|
(85.0)
|
STM WIRELESS | STMI |
0.00
|
(63.6)
|
(84.0)
|
(80.0)
|
(99.0)
|
TITAN | TTN |
15.43
|
2.0
|
39.1
|
75.5
|
48.4
|
TRIMBLE NAVIGATION | TRMB |
26.05
|
3.6
|
(2.2)
|
8.8
|
108.6
|
VIASAT | VSAT |
15.00
|
14.5
|
2.9
|
25.0
|
30.0
|
Manufacturers’ Average |
100.00
|
2.9
|
(2.3)
|
15.3
|
23.1
|
|
Nasdaq Composite Index | COMP |
1,700.34
|
2.9
|
(1.9)
|
10.4
|
27.3
|
S & P 500 | SP50 |
990.51
|
2.4
|
(0.8)
|
5.1
|
12.6
|
SN Stock Price Average |
100.00
|
1.1
|
(5.1)
|
11.7
|
39.8
|
Stock Analysis
By Paul Dykewicz
New Skies Satellites [NYSE: NSK] is showing that a niche satellite operator that is well-capitalized and has only a modest amount of debt can survive an industry-wide downturn. In many industries, weak economic conditions force small players to merge or scramble in other ways to remain viable. New Skies not only has avoided those dubious fates, but it is on track to generate positive free cash flow for 2003.
The feat is even more impressive when the company’s utilization rate of only 50 percent is considered. In good times when demand is strong, global satellite operators typically attain utilization rates above 70 percent. With New Skies recently launching the NSS-6 and NSS-7 satellites, the company’s utilization rate is lower. Robert Peck, the satellite analyst at Bear Stearns, noted, however, that the overall utilization rate for New Skies topped 70 percent for all of the company’s other satellites.
Another positive sign for New Skies is that it was able to secure new contracts during the latest quarter. The flow of new business to the company shows that the user community has confidence in the company’s staying power.
The company’s management also openly acknowledged that further pricing pressure could occur in the second half of this year. With that in mind, New Skies CEO Dan Goldberg instituted cost controls at the company that won praise from both Peck and TomWatts, the satellite analyst at SG Cowen. To further aid the cash position at New Skies, the company reduced its capital expenditures to heighten its free cash flow. Peck, in particular, highlighted that move.
Investors also can take heart from the company’s 97 percent completion of its stock repurchase program. At some companies, the repurchase of its own shares can be a ploy to convince investors that management has confidence that a stock’s value will rise when the cold marketplace reality may suggest otherwise. In the case of New Skies, the company’s stock price is undervalued compared to its larger global satellite operating peers. For that reason, the rationale of New Skies’ management appears sound. The larger satellite operators offer economies of scale that warrant higher valuations by investors, but the current gap is too high, Peck concluded.
Another plus for New Skies in overcoming challenging market conditions is that it generates revenue from a diverse base of regions and services. That situation helps the company to spread its risks and avoid dependence on any particular region or service sector for its continued profitability.