A short while back we profiled a company called KSAT Satellite Technology, Inc. (KSA-X) which is 37% owned
by GILTF & is the business that will be manufacturing, selling and delivering GILTFs satellite communication
technology. Remember now that the chinese government has decided to spend millions of dollars to improve its
Internet services using satellite communication technology & that KSAT and GILTF have exclusive rights to offer
broadband Internet access via satellite in China! China had about two million Internet users at the end of 1998.
The BDA / Strategic Group expects that over 12 million Chinese people will be on-line by the end of this year,
increasing to 25+ million by the end of 2002. KSAT/GILTF's products will be the logical solution for tens
(if not hundreds) of millions of people in China who are unable to get broadband Internet service
(let alone a phone line!). GILTF's technology has been the wide-area platform of choice for major businesses
throughout the world for many years. KSAT/Gilat Will Be Bringing High-Speed, Two-Way Satellite-Based Internet
Service To China At Least One Year Ahead of Its Nearest Competitor. Currently, no one but GILTF/StarBand is offering
true two-way, high-speed, satellite-based Internet access service & GILTF's satellites are already up and running.
Investors should also keep in mind that MSFT and DISH each invested US$50 million for approximately 19% stakes in
StarBand, which is going public in a US $300 million IPO, and that what StarBand is doing in the U.S is very, very
similar to what KSAT will be offering in China. On this basis, we dont think that its unreasonable to expect that
KSAT's market performance might closely follow that of StarBand once KSAT begins delivering Gilat-to-Home units in China.
We have (since our last recommendation) been avaraging down & we also think that KSA is definitely undervalued.
HERE'S A MUST READ ARTICLE: cdnxreviews.com
HERE'S A MUST LISTEN TO 1/2 HOUR EXCELLENT INTERVIEW WITH STEVEN WAN, WHO IS THE FORMER PRESIDENT OF KSA..No special
software is required to listen to the interview & it's WORTH LISTENING.
financewebsite.com
Now let's take a look at the week ahead:
The markets will continue to key off the combination of corporate earnings, economic data, and pending Federal
Reserve monetary policy for direction in the holiday-shortened week. Market participants will be looking
to these variables in the coming week, hoping the markets will glean the conviction necessary for a sustained rally;
something that has been lacking so far in the new year. All U.S. financial markets will be closed in observance
of the Martin Luther King holiday on Monday the 15th.
The earnings season is now in full swing as a multitude of the most recognized companies in the world are set to report
earnings next week. Similar to last week, the largest percentage of the companies reporting are components of either the finance
or technology sectors. Technology giants such as Microsoft, IBM, Sun Microsystems, Intel, Gateway, Nortel Networks, and
Juniper Networks will headline the way for the technology sector while the finance sector will be well represented with
companies like JP Morgan Chase, FleetBoston Financial, Bank One, Wells Fargo, State Street, and Citigroup.
Economic Releases:
The week's major economic data begins with Tuesday's the 16th's release of business inventories for the month of November,
which are expected to have risen 0.4 percent for the month, off from a 0.6 percent increase in October. The week's most
awaited economic data is slated for release on Wednesday the 17th, with the consumer price index (CPI), core CPI - less the
volatile food and energy sectors, U.S. real earnings, industrial production, and capacity utilization, and the Fed's Beige
Book survey, all scheduled for publishing. CPI is predicted to post unchanged, rising 0.2 percent in December, with core CPI
only rising 0.2 percent as well, off from 0.3 percent increase in November. Real earnings are likely to have recovered slightly
in December, up from their 0.1 percent decrease in November. Industrial production is forecasted to have dropped 0.5 percent in
December, adding to November's 0.2 percent decline. Capacity utilization is also expected to have fallen in December to 80.9
percent, off from 81.6 percent the prior month. The Fed's Beige Book survey is expected to show continued cooling of virtually
every sector of the nation's economy. Housing starts, jobless claims, and the Philadelphia Federal Reserve's index of business
activity in the region, are due out on Thursday the 18th. Housing starts are predicted to show an increase of 1,500,000 units
for the month of December, off from the prior month's posting of 1,562,000 units, while the Philly Fed's index is expected to show
an index reading of -7.1, for January, off from a -4.2 reading in December. The U.S. trade balance of goods and services, and the
U. of Michigan Confidence index, close out the week's major economic data. Market consensus is calling for the U.S. trade gap to
have contracted slightly to $33.0 billion for the month of November, from a record $33.2 billion the previous month. U. of Michigan
Confidence in expected to have risen slightly to an index posting of 99 in its first estimate of January, up from its final December
showing of 98.4. An index reading below 100 signals faltering consumer sentiment in relation to the economy.
REPORT DATE TIME
------------------------------------------------------------
Business Inventories 1/16 8:30 a.m. EST
CPI 1/17 8:30 a.m. EST
Core CPI 1/17 8:30 a.m. EST
Real Earnings 1/17 8:30 a.m. EST
Industrial Production 1/17 9:15 a.m. EST
Capacity Utilization 1/17 9:15 a.m. EST
Fed's Beige Book 1/17 2:00 p.m. EST
Housing Starts 1/18 8:30 a.m. EST
Jobless Claims 1/18 8:30 a.m. EST
Philly Fed 1/18 10:00 a.m. EST
Trade Balance 1/19 8:30 a.m. EST
U. of Mich Confidence 1/19 8:30 a.m. EST
-------------------------------------------------------------
Stock Splits:
Two stocks are scheduled to split next Tuesday: Delta Capital Technologies {DCTG} will split 3-1 and Direct Focus {DFXI} will split 3-2.
Stocks that are expected to split during the remainder of the week are listed in the table below.
Company Ticker Split Ex-Dividend Date
-----------------------------------------------------
Brinker International EAT 3-2 1/17/01
Community Capital Banc ALBY 10-7 1/17/01
Scholastic SCHL 2-1 1/17/01
Idec Pharmaceuticals IDPH 3-1 1/18/01
Arthur J. Gallagher AJG 2-1 1/19/01
Southwest Water SWWC 5-4 1/22/01
Talx TALX 3-2 1/22/01
____________________________________________________________
Initial Public Offerings:
No IPOs are expected to be completed until later in the month.
Till next time this is Chris - Netxman saying may all your stocks be good ones & have a safe weekend.
Chris & Marty canadiandaytraders.com |
