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The Satellite News Financial Ticker

By | February 9, 2004

      Week of Jan. 30 – Feb. 5, 2004
      Percentage Change
      Symbol
      Feb. 5 Price
      One Week
      One Month
      Three Month
      Year to Date
      Operators
      APT SATELLITE HLDGS ATS
      2.41
      (12.7)
      (16.9)
      (6.6)
      1.3
      ASIASAT TELECOM SAT
      20.08
      5.2
      (6.4)
      12.8
      5.8
      BRITISH SKY BROADCASTING BSY
      55.70
      0.4
      8.7
      23.9
      9.3
      ECHOSTAR COMM -CL A DISH
      37.53
      2.3
      10.1
      0.4
      10.4
      HUGHES ELEC (GM -CL H) GMH
      16.30
      (2.4)
      1.8
      (0.2)
      (1.5)
      LORAL SPACE & COMM LOR
      0.87
      (9.4)
      185.2
      128.9
      176.2
      NEWS CORP NWS
      35.90
      (2.6)
      (2.4)
      (0.6)
      (0.6)
      NEW SKIES SATELLITES NSK
      6.94
      1.3
      (2.8)
      6.0
      (3.1)
      PANAMSAT SPOT
      21.58
      4.5
      (0.6)
      2.1
      0.1
      PASIFIK SATELIT NUSANTARA PSNRY
      0.11
      (8.3)
      (35.3)
      (40.5)
      120.0
      PEGASUS COMMUNICATIONS PGTV
      41.65
      (12.1)
      46.1
      131.4
      48.3
      SES GLOBAL SESF.LU
      8.10
      (6.9)
      1.3
      0.6
      1.3
      SIRIUS SATELLITE RADIO SIRI
      2.70
      (3.9)
      (29.3)
      18.4
      (14.6)
      XM SATELLITE RADIO XMSR
      21.45
      (5.1)
      (20.0)
      0.3
      (18.4)
      Operators’ Average
      100.00
      (3.6)
      10.0
      19.8
      23.9
      Manufacturers
      ANDREW ANDW
      17.13
      3.0
      38.6
      29.0
      47.8
      BALL BLL
      64.00
      7.0
      9.4
      14.6
      7.4
      BOEING BA
      44.36
      6.8
      5.6
      14.5
      5.3
      COM DEV INTL *CDV
      2.95
      (6.3)
      1.7
      2.4
      2.4
      EMS TECHNOLOGIES ELMG
      21.70
      (3.5)
      4.8
      7.7
      5.6
      GARMIN GRMN
      49.65
      (6.3)
      (7.5)
      (7.7)
      (8.9)
      GILAT SAT NETWORKS GILTF
      7.51
      (3.5)
      52.0
      50.2
      53.6
      GLOBECOM GCOM
      5.96
      (5.2)
      35.5
      32.4
      25.5
      HARRIS HRS
      48.29
      1.1
      26.1
      26.4
      27.2
      HONEYWELL HON
      35.48
      (0.6)
      6.5
      15.5
      6.1
      KVH KVHI
      17.37
      (9.8)
      (33.2)
      (43.1)
      (37.0)
      LOCKHEED MARTIN LMT
      49.70
      (0.1)
      (2.0)
      8.8
      (3.3)
      LUCENT TECHNOLOGIES LU
      4.23
      (3.0)
      35.6
      34.3
      48.9
      MOTOROLA MOT
      16.25
      (3.8)
      12.1
      16.5
      16.1
      NERA NERAY
      2.35
      8.7
      11.7
      13.3
      ORBITAL SCIENCES ORB
      12.75
      (3.8)
      4.7
      34.5
      6.1
      QUALCOMM QCOM
      56.86
      0.5
      6.0
      20.2
      5.4
      RAYTHEON RTN
      31.26
      0.2
      4.7
      16.4
      4.1
      ROCKWELL COLLINS COL
      32.32
      (1.9)
      10.1
      16.8
      7.6
      SCIENTIFIC-ATLANTA SFA
      32.79
      (2.5)
      15.8
      5.0
      20.1
      SKY FRAMES SKYU
      0.01
      (90.0)
      (98.8)
      (90.0)
      TITAN TTN
      21.73
      (0.1)
      (0.3)
      2.8
      (0.4)
      TRIMBLE NAVIGATION TRMB
      35.56
      (4.6)
      (3.2)
      23.9
      (4.5)
      VIASAT VSAT
      23.70
      6.3
      23.2
      8.0
      23.8
      Manufacturers’ Average
      100.00
      (1.2)
      6.9
      10.1
      7.6
      Nasdaq Composite Index
      Nasdaq comp
      2,019.56
      (2.8)
      0.6
      3.1
      0.8
      SP 500 sp50
      1,128.59
      0.0
      1.8
      7.2
      1.5
      SN Stock Price Average
      100.00
      (2.1)
      8.0
      13.7
      13.6

       

      Wall Street Analysis

      By Paul Dykewicz

      Rarely is a company in the satellite industry battered as badly in the stock market by legal proceedings as Pegasus Communications [Nasdaq: PGTV] was last week. The company’s protracted dispute with DirecTV reached a nadir when a meeting between the heads of the companies left each side issuing press releases that appear to put them on a collision course to a courtroom showdown.

      Chase Carey, president and CEO of DirecTV’s parent Hughes Electronics [NYSE: HS], issued a statement last Thursday that announced the abandonment of a court- ordered mediation process. The announcement followed a meeting earlier that morning between Carey and Pegasus Chairman and CEO Marshall Pagon in New York.

      “We believe that Pegasus has an unrealistic view of its contractual position and, therefore, of its resulting business prospects and fundamental valuation,” Carey said. “With every day that passes, both Pegasus’ significance to DirecTV and its value as a standalone enterprise diminish.”

      Carey helped to drive down the stock price at Pegasus by claiming current equity and bond trading levels for the company are “fundamentally disconnected” both from its limited rights and its financial position, as well as the potential value of Pegasus to DirecTV.

      Pagon claimed DirecTV is seeking to intentionally damage the value of Pegasus and interfere with its successful completion of a recently announced financing. “Indeed, it would appear from their press release that DirecTV’s larger purpose is to seek to acquire our DirecTV business at a substantial discount to the value that our bondholders and preferred equity holders are legally entitled to,” he concluded.

      With dimming chance for a settlement, and DirecTV insisting it will not overpay to acquire its subscribers signed up by Pegasus, investors appeared to recoil. The result is that the stock price for Pegasus dropped 28 percent between the close of trading last Thursday and our press time Friday afternoon. The plunge to the $30 a share range is dramatic when compared with the company’s closing stock price of $45.49 on Jan. 29.

      Thomas Eagan, Oppenheimer’s satellite analyst, rates Pegasus as a “sell.” Who right now could blame him?

      Paul Dykewicz is the senior editor and senior analyst of SATELLITE NEWS. He can be reached by e-mail at pdykewicz@pbimedia.com or by phone at 301/354-1769.

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