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Orbiting Wall Street
With Panamsat formally coming out of its quiet period, it is no surprise to see the company’s public relations machine starting back up. In the past two weeks, two announcements from the company have hit the wires. And while neither announcement caused any noticeable bump in the company’s stock price, it is worth noting that the company is getting its name out on the wires again.
The most recent announcement to hit the wires came April 11 when the company said it entered into a multiyear agreement with China Radio International (CRI). Under the terms of the agreement, CRI will use three of Panamsat’s satellites–PAS-8, PAS-9 and PAS-10–to distribute its radio signal to an international audience via its 36 audio channels. Panamsat will provide the C-band capacity on the three spacecraft and turn-around service at its Napa, CA, teleport facility to distribute CRI programming worldwide. Financial terms of the deal were not disclosed. The other recent announcement hit the wires April 6 when the company said Group W-Com, a Group Pegaso company, selected it to support a new satellite-based broadband Internet service. Pegaso Banda Ancha will provide direct-to-home service providers, local telcos and cable television service providers with nationwide, two-way broadband service for consumers, enterprises and hotels.
Neither announcement caused the stock to move significantly upward. But it should be noted that since the stock hit a historic low since its IPO at $16.98 per share on April 5, it has not closed below $17 since then, though it did lows during the trading day a couple of times in the last two weeks. But with the company out of its quiet period, we expect to see some more movement on this stock in the coming weeks.
And speaking of Panamsat getting its name back in the press, look for an interview with Panamsat CEO Joseph Wright in the next issue of Satellite News.
DTV
The benchmark stock we are looking at this week for comparative purposes is that of The DirecTV Group Inc., provider of the DirecTV direct-to-home satellite television service. The company made an interesting announcement regarding its interactive advertising services. It also received some favorable words from Wall Street about its forthcoming first quarter results, which helped push the stock for at least a few days.
On the interactive TV front, the company said it signed a signed a long-term agreement with Chrysler Group to join the new DirecTV Advertising Development Partner Program. The program allows DirecTV to provide clients with an interactive advertising and research vehicle that spans across multiple DirecTV product platforms, such as interactive basic set-top receivers, digital video recorders and the DirecTV Media Center.
On the quarterly numbers front Tom Watts, analyst with SG Cowan & Co., he said in an April 12 equity research report that he expects good first quarter results, with the company returning to lower churn and seasonally lower, but strong net adds. Coincidentally, the stock price hit a two-week high of $15.10, its highest point since March 10, when it closed at $15.09.
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