The Satellite News Financial Ticker
Week of Sept. 19 – 25, 2003
|
Percentage Change
|
|||||
|
Symbol
|
Sept. 25 Price
|
One Week
|
One Month
|
Three Month
|
Year to Date
|
Operators
|
||||||
APT SATELLITE HLDGS | ATS |
2.27
|
(5.4)
|
(16.2)
|
(0.4)
|
32.0
|
ASIASAT TELECOM | SAT |
15.00
|
(6.5)
|
(7.1)
|
(6.2)
|
31.7
|
BRITISH SKY BROADCASTING | BSY |
41.50
|
1.4
|
(4.6)
|
(8.0)
|
3.6
|
ECHOSTAR COMM -CL A | DISH |
38.89
|
3.0
|
7.0
|
13.1
|
74.7
|
HUGHES ELEC (GM -CL H) | GMH |
14.22
|
(0.4)
|
(0.8)
|
12.6
|
32.9
|
LORAL SPACE & COMM | LOR |
0.21
|
(8.7)
|
–
|
(92.6)
|
(95.1)
|
NEWS CORP | NWS |
33.10
|
(3.8)
|
0.9
|
9.2
|
26.1
|
NEW SKIES SATELLITES | NSK |
5.30
|
(3.8)
|
(5.9)
|
(8.6)
|
27.7
|
PANAMSAT | SPOT |
14.16
|
(5.5)
|
(12.3)
|
(23.4)
|
(3.3)
|
PASIFIK SATELIT NUSANTARA | PSNRY |
0.17
|
–
|
135.7
|
17.9
|
10.0
|
PEGASUS COMMUNICATIONS | PGTV |
15.61
|
8.1
|
(25.7)
|
(43.5)
|
19.2
|
rSTAR CORP | RSTRC |
0.62
|
(15.1)
|
(27.9)
|
34.8
|
158.3
|
SES GLOBAL | SESF.LU |
6.49
|
5.5
|
(3.4)
|
8.2
|
1.4
|
SIRIUS SATELLITE RADIO | SIRI |
1.93
|
4.6
|
21.5
|
13.2
|
200.8
|
XM SATELLITE RADIO | XMSR |
15.53
|
(1.9)
|
18.9
|
53.0
|
477.5
|
Operators’ Average |
100.00
|
(1.9)
|
5.3
|
(1.4)
|
66.5
|
|
Manufacturers
|
||||||
ANDREW | ANDW |
12.20
|
(13.5)
|
4.5
|
27.2
|
18.7
|
BALL | BLL |
53.82
|
0.7
|
9.2
|
17.0
|
5.1
|
BOEING | BA |
33.78
|
(4.7)
|
(5.3)
|
(2.1)
|
2.4
|
COM DEV INTL | CDV.TO |
2.30
|
15.0
|
51.3
|
82.5
|
132.3
|
EMS TECHNOLOGIES | ELMG |
16.79
|
(6.2)
|
(2.6)
|
24.9
|
7.8
|
GARMEN LTD. | GRMN |
45.50
|
2.0
|
16.6
|
17.1
|
55.3
|
GILAT SAT NETWORKS | GILTF |
4.74
|
5.8
|
5.1
|
(7.1)
|
(39.2)
|
GLOBECOM | GCOM |
3.60
|
(14.7)
|
(10.0)
|
6.2
|
(4.0)
|
HARRIS | HRS |
33.77
|
(4.1)
|
3.7
|
8.5
|
28.4
|
HONEYWELL | HON |
26.53
|
(7.2)
|
(8.9)
|
(3.9)
|
10.5
|
KVH | KVHI |
27.48
|
(2.9)
|
10.6
|
46.9
|
219.5
|
LOCKHEED MARTIN | LMT |
45.15
|
(9.3)
|
(9.5)
|
(6.8)
|
(21.8)
|
LUCENT TECHNOLOGIES | LU |
2.30
|
–
|
25.0
|
24.3
|
82.5
|
MOTOROLA | MOT |
12.47
|
17.2
|
21.0
|
32.8
|
44.2
|
NERA | NERAY |
2.18
|
(3.7)
|
0.5
|
46.3
|
101.4
|
ORBITAL SCIENCES | ORB |
9.26
|
(1.5)
|
4.0
|
30.8
|
119.4
|
QUALCOMM | QCOM |
42.83
|
(3.2)
|
10.2
|
19.6
|
17.7
|
RAYTHEON | RTN |
28.09
|
(7.3)
|
(10.2)
|
(15.2)
|
(8.7)
|
ROCKWELL COLLINS | COL |
25.01
|
(1.2)
|
(6.7)
|
4.5
|
7.5
|
SCIENTIFIC-ATLANTA | SFA |
31.91
|
(5.4)
|
(2.1)
|
34.4
|
169.1
|
SKY FRAMES | SKYU |
1.15
|
(6.5)
|
27.8
|
(37.8)
|
(85.6)
|
STM WIRELESS | STMI |
0.00
|
(71.4)
|
(66.7)
|
(86.7)
|
(99.0)
|
TITAN | TTN |
20.72
|
(2.2)
|
30.7
|
107.8
|
99.2
|
TRIMBLE NAVIGATION | TRMB |
23.42
|
(10.9)
|
(15.0)
|
(2.3)
|
87.5
|
VIASAT | VSAT |
17.16
|
2.8
|
10.6
|
29.2
|
48.7
|
Manufacturers’ Average |
100.00
|
(5.3)
|
3.8
|
15.9
|
40.0
|
|
Nasdaq Composite Index | COMP |
1,817.20
|
(3.5)
|
2.9
|
13.2
|
36.1
|
S & P 500 | SP50 |
1,003.26
|
(2.2)
|
1.0
|
2.0
|
14.0
|
SN Stock Price Average |
100.00
|
(4.0)
|
4.3
|
9.4
|
49.9
|
Wall Street Analysis
By Tom Watts, SG Cowen Securities
Cablevision’s [NYSE: CVC] satellite TV venture, called VOOM, is ready for take off. Reports on VOOM indicate it will compete directly with EchoStar Communications [Nasdaq: DISH] and DirecTV by establishing an early leader position in the emerging sector of high-definition television (HDTV). By offering an extensive HD programming line-up, together with a limited sampling of traditional cable fare, VOOM aims to ride the HD wave to become a mainstream direct broadcast satellite (DBS) operator. The projected growth of HD from under 2 million homes today to 42 million by 2007 creates a special one-time opportunity for this new entrant to gain a foothold.
With the ability of both EchoStar and DirecTV to respond with competitive offerings, we view VOOM as a high-risk venture. Nevertheless, it will stimulate both DBS operators and cable TV to react. We view EchoStar and DirecTV as net gainers in the end, if they respond quickly and provide a more expansive HD offering than cable is likely to deliver.
HD holds a special challenge for the re-broadcast of local signals. As the TV networks (NBC, ABC, CBS, FOX, UPN, WB, PBS) upgrade to HD, current regulation requires the DBS operators to re-broadcast each local affiliate’s version of that signal over the satellite. EchoStar and DirecTV are taking three approaches to this requirement. First, they are attempting to change the regulation. Second, they are encouraging consumers to use off-air antennas to receive the local affiliate over the air, then feed the signal into the satellite receiver. Both EchoStar and DirecTV do this now, as VOOM plans to do. Third, they are arranging to have adequate satellite capacity to carry HD local signals at least for major markets.
While the satellite operators can add the necessary incremental capacity for HD by launching additional satellites, cable operators will be hard pressed to add 200-300 additional channels per system. Also, both DBS companies have expressed a willingness to share spectrum if the opportunities for cost savings are available. The combined resources of DirecTV and EchoStar will make it even more difficult for the cable companies to provide comparable HD capacity.
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.