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The Satellite News Financial Ticker

By | September 22, 2003

      Week of Sept. 12 – 18, 2003
      Percentage Change
      Symbol
      Sept. 18 Price
      One Week
      One Month
      Three Month
      Year to Date
      Operators
      APT SATELLITE HLDGS ATS
      2.52
      5.9
      (6.7)
      (14.9)
      46.5
      ASIASAT TELECOM SAT
      15.75
      (3.3)
      (7.5)
      (7.4)
      38.3
      BRITISH SKY BROADCASTING BSY
      41.43
      (0.4)
      (6.9)
      (11.5)
      3.4
      ECHOSTAR COMM -CL A DISH
      40.06
      9.7
      12.0
      12.2
      80.0
      HUGHES ELEC (GM -CL H) GMH
      14.61
      2.7
      7.0
      7.8
      36.5
      LORAL SPACE & COMM LOR
      0.23
      2.2
      5.7
      (93.2)
      (94.7)
      NEWS CORP NWS
      34.92
      3.2
      7.4
      7.8
      33.0
      NEW SKIES SATELLITES NSK
      5.51
      (0.2)
      (2.3)
      (6.3)
      32.8
      PANAMSAT SPOT
      15.06
      (0.3)
      (7.7)
      (23.0)
      2.9
      PASIFIK SATELIT NUSANTARA PSNRY
      0.17
      106.3
      135.7
      94.1
      10.0
      PEGASUS COMMUNICATIONS PGTV
      14.67
      (7.3)
      (28.6)
      (47.0)
      12.0
      rSTAR CORP RSTRC
      0.65
      (12.2)
      (28.6)
      27.5
      170.8
      SES GLOBAL SESF.LU
      6.25
      1.1
      0.8
      7.8
      (2.3)
      SIRIUS SATELLITE RADIO SIRI
      1.85
      8.2
      12.8
      (3.6)
      189.1
      XM SATELLITE RADIO XMSR
      15.82
      1.6
      23.6
      46.9
      488.1
      Operators’ Average
      100.00
      7.8
      7.8
      (0.2)
      69.8
      Manufacturers
      ANDREW ANDW
      13.93
      7.2
      31.5
      47.3
      35.5
      BALL BLL
      54.20
      5.4
      8.2
      11.9
      5.9
      BOEING BA
      36.13
      1.4
      9.7
      (0.1)
      9.5
      COM DEV INTL CDV.TO
      2.00
      2.0
      29.0
      48.1
      102.0
      EMS TECHNOLOGIES ELMG
      17.95
      1.6
      2.6
      30.8
      15.3
      GARMEN LTD. GRMN
      44.79
      4.8
      17.0
      0.7
      52.9
      GILAT SAT NETWORKS GILTF
      4.77
      0.6
      8.2
      25.5
      (38.8)
      GLOBECOM GCOM
      4.21
      (7.5)
      13.2
      15.0
      12.3
      HARRIS HRS
      35.81
      5.0
      14.1
      12.0
      36.2
      HONEYWELL HON
      28.36
      1.0
      (0.7)
      (0.8)
      18.2
      KVH KVHI
      30.50
      5.4
      35.9
      31.0
      254.7
      LOCKHEED MARTIN LMT
      49.69
      (3.0)
      (1.8)
      1.3
      (14.0)
      LUCENT TECHNOLOGIES LU
      2.35
      14.1
      27.0
      10.3
      86.5
      MOTOROLA MOT
      11.11
      3.9
      13.9
      24.4
      28.4
      NERA NERAY
      2.27
      (2.6)
      10.0
      45.6
      109.1
      ORBITAL SCIENCES ORB
      9.72
      4.0
      17.1
      37.5
      130.3
      QUALCOMM QCOM
      45.93
      13.1
      19.7
      36.0
      26.2
      RAYTHEON RTN
      30.58
      (4.1)
      (1.4)
      (6.5)
      (0.6)
      ROCKWELL COLLINS COL
      26.23
      (0.2)
      0.5
      11.4
      12.8
      SCIENTIFIC-ATLANTA SFA
      34.22
      1.1
      13.9
      40.4
      188.5
      SKY FRAMES SKYU
      1.20
      (4.0)
      (2.4)
      (40.0)
      (85.0)
      STM WIRELESS STMI
      0.01
      100.0
      250.0
      40.0
      (96.5)
      TITAN TTN
      21.20
      18.3
      35.6
      102.3
      103.8
      TRIMBLE NAVIGATION TRMB
      25.70
      (3.4)
      (0.2)
      (0.7)
      105.8
      VIASAT VSAT
      16.73
      2.8
      10.9
      22.6
      45.0
      Manufacturers’ Average
      100.00
      6.7
      22.5
      21.8
      45.8
      Nasdaq Composite Index
      S & P 500 COMP
      1,909.55
      4.7
      12.2
      14.5
      43.0
      SN Stock Price Average SP50
      1,039.58
      2.8
      4.9
      2.8
      18.2
      100.00
      7.1
      17.0
      13.6
      54.8

      Wall Street Analysis

      By Tom Watts, SG Cowen Securities

      EchoStar Communications [Nasdaq: DISH] raised $2.5 billion in new debt last week. The money will provide funds to call (buy back) its $1.625 billion in 9 3/8 percent notes, as well as give it financial flexibility to acquire Loral Space and Communications [OTCBB: LRLSQ] and/or to retire additional debt. In an Aug. 6 research note, we highlighted EchoStar’s likely de-leveraging and earnings per share (EPS) accretion.

      The debt re-financing should increase EchoStar’s recurring EPS by about 5 cents annually. Excluding one-time charges, this re-financing would raise 2004 EPS from $1.23 to $1.28 and 2005E EPS from $1.67 to $1.72. The move is another step toward positioning EchoStar to trade on a price/earnings (P/E) basis. Currently, EchoStar trades at 36.4 x 2004E EPS and 23.3 x the new 2005E EPS. But there is more. Even with a Loral purchase, EchoStar can still pay down its $1 billion in 10 3/8 percent notes callable (due) in October 2004, to add yet another $.022 to its bottom line.

      We view the potential purchase of Loral highly positively. If successful, we believe the purchase would have two main implications for EchoStar. One, the acquisition would add about $175 million in earnings before interest, taxes, depreciation and amortization (EBITDA). Two, the purchase would add capacity to offer high-definition (HD) local services or other advanced services.

      EchoStar already has begun introducing its “SuperDish” product that can simultaneously receive signals from a number of satellites at multiple frequencies. We believe the SuperDish could be used to receive signals from EchoStar’s current satellites, capacity it has agreed to lease from SES Americom at 105 degrees West, potential future broadcast satellite service capacity SES would launch at 105.5 degrees West, and Ku-band capacity on the Loral fleet.

      EchoStar Chairman Charlie Ergen has shown time and again that having additional orbital slots and satellites can almost always be turned to a competitive advantage. The ability to offer HD services in local markets will enhance its position.

      If EchoStar does not end up with Loral, the satellite TV service provider could buy something else.

      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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