Pru Says DISH Capex May Not Be Priced In

[rtt2]

9:25 (Dow Jones) EchoStar (DISH) agrees to pay $200M for most of Cablevision's (CVC) satellite assets, but Prudential says there's probably other costs on the way. "We believe EchoStar still must build and launch additional satellites in order to provide local and national high-def signals. We do not think this investment is necessarily in the stock." Pru says it doesn't expect to change its DISH estimates, since it was already expecting $360M in 2005 satellite capex. The firm still prefers DirecTV (DTV) and backs its underweight rating on DISH.

 

[korsjs]

interesting.

 

[bcshields]

They already have E*10 in the works. Will E*10 and R*1 be enough to provide LILHD? in MPEG4?

 

[Airblair]

I thought E* had about a billion dollars in cash, which is why they were able to purchase this satellite so easily. Of course, I don't own stock in any DBS provider, so I don't really care.