Dish Network stock falls after analyst downgrade

[riffjim4069]

Source

Dish Network shares dive after analyst downgrades them on concerns about weakening business

Shares of Dish Network Corp. fell sharply Wednesday after an analyst downgraded the stock due to concerns about the satellite TV operator's weakening business.

Sanford Bernstein analyst Craig Moffett said Dish's business has "deteriorated sharply" while churn -- or customer turnover -- has "spiked higher."

"Dish Network simply doesn't look competitive anymore," Moffett said in a research note. He took the stock down to "underperform" from "market perform."

“As we have argued for the better part of a year, with its lower-end positioning, Dish appears to be simply in the wrong place at the wrong time in this macro-economy,” Moffett wrote.

He also pointed out that “a Sept. 4 contempt hearing in the TiVo case poses potentially huge risks.” Dish Network is embroiled in an ongoing legal fight with TiVo, which won a $74 million jury verdict – now up to $94 million with interest – in 2006 against the satellite company for patent infringement involving set-top technology.

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Yikes, not a nice article about E*...I don't see Dish Nework's $9.99 package helping to generate more high-paying customers.

 

[VinceT3]

nah.. they've nickel & dimed most of us away.. I've been looking, but still holding on..

 

[DishSatUser]

Hmmm,

I may buy some shares of DISH right at the Sept 4 hearing. Should be real low at that point, and then start increasing in value again when the settlement or whatever happens is completed.

Buy low, sell high. I feel pretty strong that DISH will be a good stock long term. Just a little matter of waiting for the right market timing.

 

[Voyager6]

Looks like Moffett had very little effect on E* shares. Opened at 31.68 (down 4 cents) and closed at 32.04 (UP 30 cents from the previous close).

 

[DishSatUser]

Looks like Moffett had very little effect on E* shares. Opened at 31.68 (down 4 cents) and closed at 32.04 (UP 30 cents from the previous close).

Yeah, personally I believe that he made his statement based on the earnings report and the loss of customers without any other recent news impacting his outlook.

Stock investors then looked at DISH because of the news and saw that E* had:

1. Released TurboHD upgrade for 1080P VOD.
2. Released "All HD" TurboHD metal packages and for reasonable prices.
3. Just yesterday saw the new entry level packages at $9.99.
4. See that DISH is embracing the Feb 2009 DTV changes with adds and equipment, including the DTVPal or TR-40-A and embracing the Governmental coupons for covering the cost.
5. Success of EchoStar XI.
6. Long term plans of Eastern Arc and the all MPEG 4 upgrade.

And so on.

 

[riffjim4069]

Personally, all the "doom and gloom" scenarios are a bit overdramatic. However, I still don't see where Dish Network has taken adequate steps to right their ship and get it headed in the right direction. Perhaps I am wrong, but I still see more people leaving than signing up; I still see D* out-marketing and out-maneuvering E*; I still see big numbers being put up by the Telcos (FiOS and U-Verse), and I still see cable holding their own. We're almost 2/3rd through the 3rd Quarter and, according to reports, E* doesn't have the equipment in the warehouses to complete customer installations.

I don't know what the bottom line will be, but I see a tough 3rd Quarter for E*.

 

[Max Wright]

Maybe this is good then. If there is one thing that Charlie might actually listen to, it is those on the business end. This might act as another wake-up call and shift what the management is doing. Perhaps he'll look at some ways that they can change their business and reduce churn. In fact, I think Scott has a nice article about some changes they can do.

 

[bhawley]

Looks like Moffett had very little effect on E* shares. Opened at 31.68 (down 4 cents) and closed at 32.04 (UP 30 cents from the previous close).

Wrong stock (SATS) Dish is here:DISH: Summary for DISH NETWORK CORP - Yahoo! Finance

 

[Jerryinvirginia]

Maybe this is good then. If there is one thing that Charlie might actually listen to, it is those on the business end. This might act as another wake-up call and shift what the management is doing. Perhaps he'll look at some ways that they can change their business and reduce churn. In fact, I think Scott has a nice article about some changes they can do.

Let's hope that Scotts armchair quarter-backing will have some influence.