I think this report has been written by Robert Kaimovitz, an analyst of ING Barrings. Here is an excerpt of an interview with him about two months ago:
elibrary.com cid=812663@library_p&dtype=0~0&dinst=&pubname=Satellite_News
excerpts from article
SATELLITE ANALYST ROB KAIMOWITZ
OFFERS HIS VIEW OF THE STATE-OF-THE-
INDUSTRY
( Satellite News )
Satellite Analyst Rob Kaimowitz Offers His View Of The State-Of-The-
Industry
Nov. 01, 1999 (SATELLITE NEWS, Vol. 22, No. 44 via COMTEX) -- [...]
ING Barings satellite analyst
Rob Kaimowitz has notched an especially good year in forecasting
industry stocks and is one of the most experienced satellite analysts
on Wall Street. He is ranked by Instutional Investor magazine as
the No. 1 satellite communications analyst in the United States. He shared
the following observations in an online question-and-answer session
with Satellite News Senior Analyst Paul Dykewicz.
SN: CD Radio and XM Satellite Radio are two services that are
planning to begin service by late next year and the second quarter
of 2001, respectively. Do you expect these two satellite radio services
to develop into successful businesses?
Kaimowitz:
DARS is an absolute home run. I have been a believer
in the product since the first time I met David Margolese, chairman &
CEO of CD Radio, four years ago. However, investors have always seemed
to be divided to me. Whenever I am meeting with investors I ask everyone
sitting at the table who would purchase CD Radio to raise their hands
- inevitably, three to four out of 10 will do so - creating an informal
market study that suggests 30 to 40 percent market penetration on
200 million vehicles in the United States. We estimate that the entire
industry is breakeven with 2 to 4 million total subscribers. Like
I said - it's a home run.
SN: What are your three favorite satellite industry stocks right
now?
Kaimowitz:
[DISH, GSTRF,...]
CD Radio Inc. [CDRD]. Again, "efficient infrastructure." Three
satellites on orbit gets you the equivalent of 100 radio stations
in every market in the United States - a probable home run. They also
have several advantages over competitor XM Radio. If the FCC approves
their request to use elliptical orbits, the look angles should be much
better, providing fewer drops in service. The second is the
entrepreneurial management. David Margolese is a forward looking
entrepreneur - and one of the company's largest shareholders. I don't bet against guys like him. |
