Are We in a Recession? - Echostar's Ergen Weighs In

Are we in a recession? Charlie Ergen thinks so.

Speaking to analysts in a post-earnings conference call, the Echostar (DISH) Chairman and CEO asserted that the surprisngly high customer churn rate in the third quarter at least in part reflects an increasingly difficult economy. “I would say the odds are that we are either in a recession today or shortly headed for a recession,” he said.

Ergen, to his credit, took most of the blame for the company’s woes. “It was a very solid quarter except for churn, and churn was very disappointing,” he said. “I just didn’t do a very good job as CEO in terms of managing that.”

On Monday, Echostar shares slumped $7.68, or 16%, to $40.83.

Comments

[jcrash:]

It could also have something to do with the fact that DirecTV has rolled out several channels in HD which Dish doesn't offer. I've been a DISH customer for over 10 years and I'm frustrated by not having these new channels (Sci-Fi HD, FX HD, USA HD). Some of the best non-mainstream series are shown on these channels and watching them without HD sucks.

Many people have jumped ship for the new channels as they see TV companies as a commodity. I like DISH and will stay, but they better get me my channels.

(I own no DISH or DirecTV related investments).

2007 Nov 13 04:14 PM

[sunrises:]

Hello, This may not be directly related to the above:

There are many of us ready to invest in US companies to support and prevent a recession, yet which companies offers similar growth & return as emerging markets? Which companies are reasonable in price to purchase?

Other questions, FTO has a good forward growth yet its price hasn't increased as much? MON, us based company, has a strong growth and stats; however, it is moving slowly? DIG, oil fund, covers all the toppers of oil. The news reiterates investing in Emerg Mark., then is it less risky and better return with Brazilian currency verses Brazilian companies? What is your or another pro's opinion?

VMW is one of a kind, in virtual solutions, similar to GOOG. Other competitors may aim to copy, yet this company still has the largest market space & growth. Today’s market is up; however, how long will it take to return as before the four days?

2007 Nov 13 07:01 PM

[nun:]

Funny... I've seen no mention of the buyback initiated by Echostar on Monday. I'd almost guess DISH wants the price down so they can cheaply recover shares before any possible AT&T deal.

2007 Nov 14 08:05 PM