The Satellite News Financial Ticker
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Week of Oct. 17 – 23, 2003
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Percentage Change
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Symbol
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Oct. 23 Price
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One Week
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One Month
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Three Month
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Year to Date
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Operators
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| APT SATELLITE HLDGS | ATS | 2.24 | 3.7 | (4.7) | (24.1) | 30.2 |
| ASIASAT TELECOM | SAT | 16.51 | 2.9 | 11.2 | (1.7) | 45.0 |
| BRITISH SKY BROADCASTING | BSY | 43.49 | 0.8 | 1.6 | (4.9) | 8.6 |
| ECHOSTAR COMM -CL A | DISH | 38.95 | (2.4) | (3.6) | 8.7 | 75.0 |
| HUGHES ELEC (GM -CL H) | GMH | 15.64 | 1.2 | 5.8 | 17.0 | 46.2 |
| LORAL SPACE & COMM | LOR | 0.38 | (5.0) | 76.7 | 74.7 | (91.2) |
| NEWS CORP | NWS | 34.66 | 0.2 | 1.8 | 14.2 | 32.0 |
| NEW SKIES SATELLITES | NSK | 6.02 | 3.3 | 13.4 | 10.9 | 45.1 |
| PANAMSAT | SPOT | 19.38 | 2.0 | 30.3 | 10.7 | 32.4 |
| PASIFIK SATELIT NUSANTARA | PSNRY | 0.19 | – | 15.2 | 171.4 | 26.7 |
| PEGASUS COMMUNICATIONS | PGTV | 17.50 | 25.5 | 7.7 | (48.2) | 33.6 |
| SES GLOBAL | 549343 | 7.61 | 0.8 | 15.3 | 31.4 | 18.9 |
| SIRIUS SATELLITE RADIO | SIRI | 2.50 | 5.5 | 24.0 | 53.4 | 290.6 |
| XM SATELLITE RADIO | XMSR | 19.08 | (6.1) | 18.6 | 50.7 | 609.3 |
| Operators’ Average | 100.00 | 2.3 | 15.2 | 26.0 | 85.9 | |
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Manufacturers
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| ANDREW | ANDW | 12.52 | (6.8) | (4.6) | 24.1 | 21.8 |
| BALL | BLL | 54.04 | (3.7) | (0.3) | 11.2 | 5.6 |
| BOEING | BA | 35.94 | (4.0) | 2.2 | 9.9 | 8.9 |
| COM DEV INTL | *CDV | 2.50 | (2.0) | 8.7 | 85.2 | 152.5 |
| EMS TECHNOLOGIES | ELMG | 17.99 | (5.8) | – | 14.6 | 15.5 |
| GARMIN | GRMN | 42.30 | (5.5) | (7.7) | 0.8 | 44.4 |
| GILAT SAT NETWORKS | GILTF | 4.24 | (8.8) | (11.1) | (16.5) | (45.6) |
| GLOBECOM | GCOM | 4.23 | 4.4 | 9.3 | 1.9 | 12.8 |
| HARRIS | HRS | 35.53 | (1.6) | 0.7 | 14.9 | 35.1 |
| HONEYWELL | HON | 28.77 | (2.8) | 6.1 | 1.2 | 19.9 |
| KVH | KVHI | 25.66 | (5.8) | (13.8) | 27.8 | 198.4 |
| LOCKHEED MARTIN | LMT | 45.67 | (0.1) | (0.7) | (14.4) | (20.9) |
| LUCENT TECHNOLOGIES | LU | 2.83 | 20.4 | 25.8 | 57.2 | 124.6 |
| MOTOROLA | MOT | 13.48 | (1.6) | 9.6 | 47.5 | 55.8 |
| NERA | NERAY | 2.20 | (0.4) | (1.1) | 39.9 | 103.1 |
| ORBITAL SCIENCES | ORB | 9.38 | (6.0) | (2.8) | 15.8 | 122.3 |
| QUALCOMM | QCOM | 43.87 | (2.2) | (2.0) | 21.0 | 20.6 |
| RAYTHEON | RTN | 26.71 | (5.0) | (8.4) | (20.4) | (13.1) |
| ROCKWELL COLLINS | COL | 26.81 | 0.1 | 4.1 | 5.1 | 15.3 |
| SCIENTIFIC-ATLANTA | SFA | 35.03 | (4.4) | 3.7 | 16.2 | 195.4 |
| SKY FRAMES | SKYU | 0.75 | (21.1) | (31.2) | (42.3) | (90.6) |
| TITAN | TTN | 20.90 | (0.5) | (0.0) | 85.6 | 101.0 |
| TRIMBLE NAVIGATION | TRMB | 23.20 | (1.0) | (12.1) | (5.7) | 85.7 |
| VIASAT | VSAT | 19.11 | (5.5) | 5.3 | 33.9 | 65.6 |
| Manufacturers’ Average | 100.00 | (2.9) | (0.8) | 17.3 | 51.4 | |
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Nasdaq Composite Index
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| Nasdaq | comp | 1,885.51 | (3.3) | (0.9) | 9.7 | 41.2 |
| SP 500 | sp50 | 1,030.36 | (1.9) | 0.1 | 4.2 | 17.1 |
| SN Stock Price Average | 100.00 | (1.0) | 5.1 | 20.5 | 64.1 | |
Wall Street Analysis
By Tom Watts, SG Cowen Securities
The fate of the DirecTV 7S satellite was finally resolved — at least for now. After a full day of courtroom drama, plus one night’s sleep, U.S. Bankruptcy Court Judge Robert Drain ruled that Loral Space & Communications’ [OTCBB: LRLSQ] satellite manufacturing arm Space Systems Loral (SS/L) would have to fulfill its contractual obligation to deliver the satellite to DirecTV – a decision we consider fair and just.
If successful, the attempts by rival EchoStar Communications [Nasdaq: DISH] to buy the satellite off SS/L’s factory floor would have delayed DirecTV’s plans to deliver local programming to another 1.5 million subscribers in 35 markets. We estimate that without that local programming, DirecTV could have lost 200,000 subscribers or more to EchoStar, which should local programming in all those markets by the end of this year.
EchoStar fought long and hard. First, EchoStar offered $100 million for the satellite. Five days later, the bid was raised to $200 million. Finally, at the last minute, EchoStar changed course and offered $60 million-plus indemnification to Loral for any damage claims that DirecTV would have sought. DirecTV estimates it would have had claims against Loral of about $200 million if the satellite were sold elsewhere. In his ruling, the judge addressed the whole issue of indemnification by EchoStar as “a problem waiting to happen.”
In the end, DirecTV agreed to pay $25 million above its original contract price, with total cost reaching about $165 million. DirecTV’s parent Hughes Electronics [NYSE: GMH] provided another $75 million in cash deposits consisting of $25 million each for three satellites it has ordered. Though we don’t know how much this headache has ultimately cost DirecTV in legal fees and the like, one thing we do know is that EchoStar Chairman Charlie Ergen and his team can be counted on for drama. Characteristically, EchoStar officials said they are considering an appeal.
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.