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Still Accumulate Echostar


Echostar (DISH)

Mainitan 4 STARS (accumulate)

Analyst: Howard Choe

The Wall Street Journal reported that chairman Ergen plans to invest at least $1 billion in Spaceway, Hughes Electronic's high-speed satellite data business. The plan is not surprising considering DBS disadvantage in high-speed data to cable. Current satellite data services are prohibitively expensive for consumers; DBS providers are co-marketing more affordable data services as a result. Investment would accelerate development of Ka-band which can maximize spectrum use and reduce costs. Data services should be a major contributor to cash flows in the future.

Yahoo (YHOO), AOL Time Warner (AOL), Amazon.com (AMZN) and eBay (EBAY):

Maintain 1 STAR (sell) on Yahoo, 4 STARS (accumulate) on AOL and 3 STARS (hold) on Amazon.com and eBay

Analyst: Scott Kessler

S&P sees Christmas selling season online likely a bit better than expected. On Wednesday morning, Yahoo reported an 86% increase in holiday sales volume and said users spent $10.3 billion in the fourth quarter. Amazon also appears to have faired well, capitalizing on demand for electronics goods such as video game consoles, digital cameras and DVD players. Regardless, S&P still believe Yahoo stock is overvalued at 278 times 2002 estimates and AOL is attractive at 24 times next year's earnings forecasts. Amazon and eBay are trading at reasonable valuations.


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