This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

EchoStar Fans Await Liftoff

EchoStar (DISH - Get Report) fans are growing anxious.

The satellite broadcaster is due to post earnings Wednesday morning. Wall Street is looking for a 35-cent per-share profit on sales of $2.19 billion.

But it's not the fourth-quarter numbers that Wall Streeters are so interested in. They're looking for signs of life on the strategic front. As rivals ranging from AT&T (T - Get Report) and Comcast (CMCSA - Get Report) to Verizon (VZ - Get Report) jockey for position on a shifting communications landscape, backers of EchoStar are looking for CEO Charlie Ergen to shake things up a bit.

Upping the stakes, EchoStar shares have been flat for the last five years. They closed Tuesday at $29.46.

A Goldman report this week suggested that fans are hoping Ergen will make comments indicating that management is weighing a sale or at least a joint broadband venture with competitor DirecTV (DTV - Get Report).

Goldman analyst Lale Topcuoglu concedes that Ergen is unlikely to divulge anything of much significance. While Ergen's silence wouldn't necessarily signal a lack of interest, Goldman "believes it could reduce the market's patience" with the stock. Goldman makes a market in EchoStar, and has an outperform/neutral rating on the stock.

The Englewood, Colo., company has been bandied about as an acquisition target, especially following last week's megamerger between BellSouth (BLS) and AT&T.

Rupert Murdoch's DirecTV is in talks with EchoStar, and perhaps others, on how to launch a nationwide wireless broadband network. That news was first reported by TheStreet.com.

Both EchoStar and DirecTV want to capitalize off the so-called triple threat of television, telephone and Internet services that some rivals already dangle before consumers. Operators like the triple threat because it increases both revenue and customer loyalty or reduces subscriber churn. So far satellite companies have not been able to fully capitalize on this so-called bundling push because of their lack of two-way transmission capability. While both DirecTV and EchoStar offer high-speed data services through co-marketing agreements with telcos, they are discovering the myriad advantages of in-house triple-threat service.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CMCSA $58.42 0.00%
DISH $69.26 0.00%
DTV $86.60 0.00%
NWS $15.49 0.00%
T $32.51 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs