Satellite stocks proved to be more resilient than the rest of the stock market last week when the Dow Jones Industrial Average plunged 299.43 points Tuesday before recovering a small portion of its loss with gains of 59.74 points Wednesday and 30.90 points Thursday.
Operators and manufacturers of satellites were equally affected as both dropped in value 3.2 percent, compared with a 4.7 percent slide for the Nasdaq Composite Index and the S&P 500. The sector's worst hit stock was satellite operator APT Satellite Holdings [ATS], which lost 25.2 percent of its value.
APT has lost almost half its value during the past year, amid the ongoing economic and currency crises in Asia. The satellite operator is vulnerable to the problems because its Asian customers have been slammed financially.
American Mobile Satellite Corp.'s [SKYC] (AMSC) stock lost 14.7 percent of its value last week, sliding 28 percent in the past month. APT and AMSC are vulnerable to large percentage swings in their stock values because both trade at prices under $10 a share. APT closed Thursday at $6 a share, while AMSC ended trading that day at $7.25 a share.
...EchoStar, Motorola And TCI Show Gains
Satellite stocks advancing last week included EchoStar Communications Corp. [DISH], Motorola Inc. [MOT] and TCI Satellite Entertainment [TSATA]. EchoStar, a fast-growing direct broadcast satellite provider, was helped by reporting a 147 percent jump in revenue for the second quarter ended June 30. That sign of strength lifted the stock price 2.6 percent last week to close at $25.625 Thursday, boosting its stock value 53 percent for the past year.
Motorola, the main contractor and a major financial backer for Iridium LLC [IRIDF], gained 1.4 percent in value last week. The stock likely had been beaten down sufficiently in recent months due to weak financial performance and the need to restructure operations. Motorola closed last Thursday at $52.5 a share, marking a 2 percent dip during the past month and an 8.2 percent decline for the past year.
Iridium lost value last week when its stock price fell to $41.375 a share Thursday, an 8.6 percent retreat from the same time a week ago and a 31.5 percent tumble during the past month. Iridium is suffering from satellite failures in its proposed 66-bird constellation.