Primestar/TCI Satellite (TSATA) Message Board

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Technology Stocks : Primestar/TCI Satellite (TSATA)

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To: jeff lipschutz who wrote (92)	10/1/1998 1:21:00 PM
From: JDCFA	Read Replies (1) of 442

ASkyB merger was originally announced in June of last year. DoJ approval was expected after a 2 - 3 month review. Unfortunately, the DoJ operated on a typical govt. timeframe and took nearly 12 mos. During this extended period, Primestar's partners stopped marketing the medium power business; no money was spent on marketing. This lack of focus has only been corrected within the last month. September should show a large improvement in net subs. adds. Yes, despite this lack of focus, Primestar has still increased revenue , cash flow and net subs (+15%). Relative to Primestar's past growth rate and the growth rate of high power competition this number is seen as being subpar and industry observers view Primestar as "struggling". This is a long answer to your question. Primestar's medium power business is a great cash flow positive business which can be operated on a very tight budget. As the sub. growth rate improves so will its valuation. The cloud cast over TSAT by the DoJ has brought about an outstanding value play where upside potential exists with or without high power approval. But let's face it, HIGH POWER MEANS HIGHER STOCK PRICE!

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