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The Satellite News Financial Ticker

By | August 9, 2004
      Week of July 30 – Aug. 5, 2004
      Percentage Change
      Symbol
      Aug. 5 Price
      One Week
      One Month
      Three Month
      Year to Date
      Operators
      APT SATELLITE HLDGS ATS
      1.58
      (4.2)
      (16.4)
      (6.0)
      (33.6)
      APT SATELLITE HLDGS ATS
      1.51
      (5.6)
      (17.0)
      (28.8)
      (36.6)
      ASIASAT TELECOM SAT
      17.76
      (0.2)
      8.0
      7.6
      (6.4)
      BRITISH SKY BROADCASTING BSY
      36.60
      (19.2)
      (19.4)
      (24.6)
      (28.2)
      ECHOSTAR COMM -CL A DISH
      27.85
      (0.2)
      (8.1)
      (17.8)
      (18.1)
      THE DIRECTV GROUP DTV
      16.69
      2.8
      (3.5)
      (7.5)
      0.8
      LORAL SPACE & COMM LOR
      0.08
      (5.9)
      (55.6)
      (84.6)
      (74.6)
      NEWS CORP NWS
      32.68
      (3.5)
      (8.2)
      (12.2)
      (9.5)
      NEW SKIES SATELLITES NSK
      7.71
      0.1
      2.7
      7.7
      PANAMSAT SPOT
      22.40
      (3.8)
      (3.5)
      (2.9)
      3.9
      PASIFIK SATELIT NUSANTARA PSNRY
      0.22
      340.0
      PEGASUS COMMUNICATIONS PGTV
      19.99
      (9.6)
      (7.0)
      8.1
      (28.8)
      SES GLOBAL SESF.LU
      7.00
      (0.4)
      (1.7)
      (10.5)
      (12.5)
      SIRIUS SATELLITE RADIO SIRI
      2.39
      (2.4)
      (20.3)
      (30.3)
      (24.4)
      XM SATELLITE RADIO XMSR
      25.38
      2.0
      (8.8)
      (0.0)
      (3.5)
      Operators’ Average 100.00
      (3.3)
      (10.4)
      (14.3)
      7.9
      Manufacturers
      ANDREW ANDW
      9.59
      (8.5)
      (50.8)
      (46.1)
      (17.3)
      BALL BLL
      72.82
      2.6
      2.9
      9.6
      22.2
      BOEING BA
      50.13
      2.3
      1.2
      15.8
      19.0
      COM DEV INTL *CDV
      3.22
      0.6
      (7.7)
      26.3
      11.8
      EMS TECHNOLOGIES ELMG
      14.97
      (3.4)
      (19.1)
      (22.7)
      (27.1)
      GARMIN GRMN
      37.24
      (1.3)
      8.2
      24.5
      (31.6)
      GILAT SAT NETWORKS GILTF
      4.35
      4.8
      (17.9)
      (32.8)
      (11.0)
      GLOBECOM GCOM
      5.55
      0.5
      5.7
      (11.8)
      16.8
      HARRIS HRS
      46.90
      3.7
      (5.7)
      4.8
      23.6
      HONEYWELL HON
      35.85
      (5.9)
      (0.1)
      3.0
      7.2
      KVH KVHI
      7.64
      (0.8)
      (38.9)
      (45.9)
      (72.3)
      LOCKHEED MARTIN LMT
      53.26
      0.3
      3.3
      11.3
      3.6
      LUCENT TECHNOLOGIES LU
      3.01
      (2.0)
      (15.0)
      (12.5)
      6.0
      MOTOROLA MOT
      15.29
      (5.6)
      (14.0)
      (18.0)
      9.2
      ORBITAL SCIENCES ORB
      11.08
      (3.7)
      (18.5)
      (16.4)
      (7.8)
      QUALCOMM QCOM
      69.88
      (0.3)
      (3.3)
      8.1
      29.6
      RAYTHEON RTN
      34.23
      4.6
      (1.4)
      6.6
      13.9
      ROCKWELL COLLINS COL
      34.14
      0.6
      2.3
      7.2
      13.7
      SCIENTIFIC-ATLANTA SFA
      27.58
      (6.1)
      (16.0)
      (16.4)
      1.0
      SKY FRAMES SKYU
      0.10
      100.0
      100.0
      TITAN TTN
      11.77
      0.1
      (8.3)
      (37.9)
      (46.0)
      TRIMBLE NAVIGATION TRMB
      26.12
      (2.9)
      (1.1)
      (3.3)
      5.2
      VIASAT VSAT
      20.32
      15.8
      (18.9)
      (10.5)
      6.2
      Manufacturers’ Average 100.00
      4.2
      (4.9)
      (6.8)
      (1.0)
      Nasdaq Composite Index
      Nasdaq comp
      1,821.63
      (2.0)
      (9.2)
      (6.6)
      (9.1)
      SP 500 sp50
      1,080.70
      (1.3)
      (4.0)
      (3.5)
      (2.8)
      SN Stock Price Average
      100.00
      1.3
      (7.0)
      (9.7)
      2.3

      Wall Street Analysis

      The final outcome of PanAmSat’s [SPOT] sale to Kohlberg Kravis Roberts & Co. (KKR) is in limbo due to the failure last week of the satellite operator’s backup xenon ion propulsion system (XIPS). The in-orbit malfunction, following on the previous failure of the spacecraft’s primary XIPS, leaves the satellite operating on its onboard bi-propellant fuel that will be exhausted within three years. The problem will require the launch of a replacement satellite much sooner than if the satellite would have achieved its full scheduled life. The unexpected setback contributed to a 3.8-percent decline in the company’s stock between July 30 and Aug. 5.

      A possibility exists that KKR could negotiate a slight reduction in its $4.3 billion purchase of PanAmSat and its assumption of approximately $750 million in net debt. Expect the sale to advance even though KKR legally is entitled to abandon the transaction in light of the XIPS failure. KKR won a hotly contested bidding process, and other financial buyers would readily swoop in if KKR attempts to substantially restructure its offer.

      Another key development last week was XM Satellite Radio [XMSR] once again outperforming its guidance during second-quarter 2004. XM’s stock price rose 2 percent between July 30 and Aug. 5. Favorable results and increased guidance that included boosting expected year-end subscribers to 3.1 million from 2.8 million helped to fuel the stock. Despite the slight rise in XM’s stock, it remained down 8.8 percent for the past month.

      The DirecTV Group [DTV], the parent company of the largest U.S. satellite TV operator, also is another company that helped its stock price by outperforming Wall Street expectations. The company last Thursday announced its results, achieving an all-time high in gross subscriber additions during the second quarter. The DirecTV Group’s stock price rose 2.8 percent during the one-week period tracked by our Satellite News stock listing. Meanwhile, DirecTV remains down 8.1 percent for the month.

      BSkyB [BSY], a London-based satellite TV service, did not follow suit. BSkyB’s stock price dipped 19.2 percent last week, and it was down 19.4 percent for the month. One potential cause – ownership — can be eliminated for the disparity between DirecTV and BSkyB because News Corp [NWS] owns both companies.

      Paul Dykewicz is senior editor and senior analyst of Satellite News. He can be reached at 301/354-1769 or at pdykewicz@accessintel.com.

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