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Technology Stocks : Echostar Comm.
SATS 73.29+3.4%Nov 28 9:30 AM EST

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To: Stoctrash who started this subject9/11/2000 11:35:58 AM
From: R. Giovinazzo  Read Replies (1) of 1394
 
Red Herring Article
redherring.com

Some of this may already be common knowledge, but the Red Herring article above is worth skimming. A few points of interest:

- They mention that the government may force AOL to divest their GMH holdings if they want the Time-Warner deal to be approved. At the same time, GMH is probably no longer as desirable to AOL after the merger due to their interest in cable modem access to the broadband market (AT&T).

- Zacks predicts 19% annual earnings growth rate for cable companies, but 22% and 31% for Hughes and Echostar respectively, also pointing out that although the DBS providers are currently not profitable, neither are most cable companies. The difference is that the DBS companies are en route to change that with DISH becoming profitable before 2002.

- Satellite TV subscription numbers will be at 14M by the end of 2000 and 25M by the end of 2005.

- GM may have a final decision regarding the sell-off or spin-off of Hughes in a matter of months.

- Echostar's lawsuit against Hughes and their alleged monopolistic practices is being led by David Boies, the attorney who led the government in the antitrust suit against MSFT. In other words, this lawsuit is not merely a bunch of trumped-up charges, but something Echostar has considered seriously.
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