NEW YORK, June 8, 2000 (PRIMEZONE) -- Three leading analysts and top management from six sector firms examine the Satellite Communications Industry in the latest issue of The Wall Street Transcript (212/952-7433) or http://twst.com/info/info106.htm
In a vital review of this sector for investors and industry professionals, this valuable 40-page issue features:
1) The TWST confidential Off-The-Record survey of management performance at fifteen sector firms asked market insiders about the ability of management teams to create shareholder value.
A Wall Streeter comments on strong operations and strategy at EchoStar Communications (Nasdaq:DISH) under CEO Charles Ergen, "Clearly, EchoStar has done a phenomenal job of marketing, it's done a phenomenal job of keeping operating costs down, and it's done a phenomenal job of being able to strategically pick the right partnerships, go after the right kind of technology, and form the right kind of alliances."
The street likes where Ergen is taking EchoStar, notes a money manager. "Ergen had a great vision in building up EchoStar from where it was and making it able to compete with a mammoth like Hughes. They've had great acquisition programs, they are on the ball, and they move fast. Even when Time Warner and ABC were having their fight, they were quick to get out there and get through the subscribers as well. The Street likes where management is taking the company, bringing in data and bringing in other partnerships. EchoStar is probably going to do some sort of partnership with Sirius Satellite and get some radio incorporated as well, because DirecTV is affiliated with XM Satellite. So Ergen has been the leader of the field. That's the top guy right there."
A colleague continues, "Obviously, in terms of strategy and operations, most people would agree that Ergen has done a phenomenal job in the DBS area as an underdog and not inline with another big media or communications organization. He's done just an unbelievable job. He has really lobbied Washington to get what he needed in terms of getting local signals."
Michael Smith, CEO of Hughes Electronics (NYSE:GMH), is positioned well in the industry, maintains a sell sider. "Hughes' management is okay at best, but they've positioned themselves very well in the industry. They bought a company called Primestar and they have a market-leading share right now with about 8 million subscribers. The reality is that Hughes has done a good enough job to set themselves up, the wave is carrying them along, so at this point they don't really need great management. It's on autopilot now."
The success of Hughes has been team-driven, in the opinion of this Wall Streeter. "The Hughes management team has done a pretty good job of creating shareholder value, which is ultimately their job. If you look at where Hughes' stock price was 18 months ago and compare it to where it is now, it's pretty impressive. Management has done a pretty good job of crafting the organization to focus it on the essential value-creating businesses and unloading those that don't create value. It's partly been Smith, but he has had a pretty good team to help him do that. The Street doesn't necessarily view him as a strong leader, so a lot of it has probably been the team-driven stuff."
This 40-page Satellite Communications Industry issue also includes:
2) Satellite Communications - In an in-depth (10,600 words) Analyst Roundtable, John Coates, Satellite Services Analyst at Salomon Smith Barney, J. Armand Musey, Managing Director at Banc of America Securities, and William Vrattos, Analyst at Georgica Advisors LLC, examine the outlook for the sector, look at the digital audio radio satellite business, discuss the failure of Iridium, assess new products and technology, and share specific stock recommendations. 3) CEO interviews (average 2,500 words). Top management of six sector firms examine the outlook for their firm and the sector. Firms include Canadian Satellite Communications, Integrated Spatial Information Solutions, KVH Industries, Motient, Norsat International and Sirius Satellite Radio.
To obtain a copy of this 40-page Satellite Communications Industry issue call (212) 952-7433 or see http://www.twst.com/info/info106.htm. The Wall Street Transcript is a premier weekly investment publication interviewing market professionals for serious investors for over 37 years.
The Wall Street Transcript has launched a new free service where investors can ask any of the above companies (or any public company) a question at http://www.qawire.com.
Visit The TWST Newspage at http://www.twst.com/newspage.html for free recent recommendations from top analysts and money managers.
The Wall Street Transcript does not endorse the views of any interviewee nor does it make stock recommendations.