Avanti Communications Share Discussion Threads

[pixi] 24/6/2011 00:40

I've been down this road before. Contrary to popular opinion, the world is not going to end tomorrow or the next day. I really don't care what the market might or might not do in the short-term. I've made my bed and I'll jolly well lay in it. Wake me up in a couple of years time!

[restassured] 23/6/2011 21:38

I missed this bit.......



"Given
the search for acquisitions from the large players, we do not see the current low valuation as being sustainable."

[yorgi] 23/6/2011 20:22

Well that would explain why we still seem to be in the downward trend

[marksnsparkle] 23/6/2011 20:15

Short position is still increasing ...

[restassured] 23/6/2011 19:22

Is that up two days in a row?

[pixi] 23/6/2011 17:07

Just for the record, I bought 2,000 at 358.95p the other day. I had a serious think and thought I would be stupid not to. It is impossible to judge when all the selling is done and sentiment changes for the better.

Volsung

I was completely flat myself until a couple of days ago. You are very wise to keep your powder dry. Best of luck.

[backmarker] 23/6/2011 16:49

phoenixbird,

re 6067, point 4

you left out the Irish ;-)

[yorgi] 23/6/2011 14:58

Good to see we are blue today when many stocks down market not good to say the least.

Jefferies report makes an encouraging read.

[restassured] 23/6/2011 14:17

23 June 2011

Avanti Communications Group plc

("the Company")

Directors Shareholdings

Avanti Communications Group plc (AIM: AVN), the satellite operator, was informed on 23rd June 2011 by David Williams, Chief Executive, that on June 22nd he purchased 6,458 ordinary shares in the Company at a price of 341p pence per ordinary share.

David Williams now holds a total direct and indirect voting right interest in 1,587,092 ordinary shares in the Company, being approximately 1.96% of the issued ordinary share capital of the Company. Mr Williams has a further revocable and indirect interest in 522,233 ordinary shares under the Company's Long Term Incentive Plan which are subject to certain criteria.

--ENDS---

[yorgi] 23/6/2011 14:14

Thanks for posting that Billy.

[volsung] 23/6/2011 14:10

Pixi. Watching and waiting. Out of just about everything except for a few shorts at the minute

[billytkid2] 23/6/2011 14:08

Here is the Jeffried report:

Avanti Communications (AVN LN)
Meeting Milestones: Great Buying
Opportunity

Key Takeaway
We met with management yesterday (June 22nd) and see the current share
price as a great entry opportunity. Management reiterated its confidence
that Hylas-1 will be filled within three years and five for Hylas-2. Hylas-2
is on schedule for Q2 2012 launch and there is strong interest from a big
multinational for the African and ME capacity. Interest is also growing for Kaband
capacity for Milsatcom on the steerable beam over MENA.
Hylas-2 on schedule for H1 launch next year and strong level of interest for
African and Middle Easter capacity as well as steerable beam covering Middle
East and North Africa. Also we note a March 15th 'Request For Information' from
the Department of Defence for Ka-band capacity covering U.S. Central Command area of
operations (i.e. the Middle East) with a budget of $440m (including terminals) from 2012.
Aside from Hylas-2, we are not aware of another Ka-band satellite from a NATO country that
will be operational by then.
We estimate that the group backlog is currently sufficient to deliver £71m of
sales on both satellites by FY'14. We forecast sales of £98m, implying that the group
needs to convert about a third of its current pipleline of £425m (assuming an average
contract life of five years) . At this level of sales, we estimate EPS of 36.2p and FCF yield 9.1%.
Stock is now trading at only 1.3x book value, compared to c.4x for the European
FSS operators.The bulk of the BV reflects equity invested in the two satellites. It does not
include the value of the group's licenses for three orbital slots and 14GHz of spectrum. Given
the search for acqusitions from the large players, we do not see the current low valuation
of Avanti as being sustainable.
Valuation/Risks
Our price target of £13.40/share is derived by applying a 10% discount to our £15 DCF per
share valuation of the three satellites. Another valuation approach, and one that implicitly
recognizes as an ongoing concern beyond the expected 15-year life of the satellites, is to
apply a 14x multiple to calendarised 2016 EPS of £1.54 giving a value of £21.56 six years
out. Using a discount rate of 10% derives a current valuation of £13.38, in line with our DCFbased
price target. Key risks include pricing pressure, capacity sales, and project delays.

[yorgi] 23/6/2011 13:26

Quite so Jonnib.

[jonnib] 23/6/2011 13:25

Another director buy. Some will say its a small amount but thats quite a few in the last month. No one throws money away

[dougie471] 23/6/2011 12:32

it certainly shows the sector Avanti want to target. high prices can be achieved and a large percentage of capacity can be sold. Great for AVanti having Ray Brough on board who is very well connected in this sector
i have a feeling there is an awful lot going on behing the scenes with Avanti

[yorgi] 23/6/2011 12:19

Yes, great find Dougie thanks for posting.

[sg31] 23/6/2011 11:48

Nice find dougie

[dougie471] 23/6/2011 11:39

Avanti Ideally Positioned for Next Phase of Military Satellite Communications
23 June, 2011 - 09:16
Avanti Communications presented an update on experience gained through testing military Ka-band satellite communications on HYLAS 1 at the Institution of Engineering and Technology's (IET) Milsatcoms conference on Wednesday 15 June.

The trials demonstrated the effectiveness of Ka-band on an operational satellite, delivering highly cost effective, high speed, data for a number of military applications. Avanti has already begun to develop fully commercialised defence and security services based upon the knowledge gained from the trials.

The deployment of Ka-band was a dominant theme at the conference, and the overall conclusion was that the spectrum offers huge potential for governments to improve operational command, control and intelligence at a much lower overall cost. Companies, such as Avanti, were ideally placed to benefit from the increasing need for data communication generated by both operations and training.

The conference was also attended by Avanti's new Vice President Defence Sales, Ray Brough. Ray recently joined the Company from Astrium Secure Satellite Systems, where he was Head of UK, NATO and Institutional Sales. He will also be representing Avanti on the UKspace Security and Defence Committee.

[restassured] 23/6/2011 10:51

Jefferies reiterates Buy on Avanti with 1340p target price.

289% higher than current price.

[yorgi] 22/6/2011 22:30

Exactly Buck

[buck581] 22/6/2011 22:29

I'm in SRT. Great results and statement yesterday. Earnings up, no debt, loads of cash, world leader, enormous potential.
DOWN 4% TODAY.
There's no rhyme or reason to these markets at the moment.
Hang on.

[dunluce] 22/6/2011 22:15

Fear and Greed - when all are fearful its time to be greedy.....perhaps not quite at that stage yet but from the tone of this thread we are not far away.

[tradermania] 22/6/2011 22:05

whats going on I thought this was going up and up and up.. well until ? Still looks good

[pixi] 22/6/2011 21:49

Volsung

Good to hear from you. Do you have a position and what is your target?

The directors have been buying, but it still heads south. Maybe the market needs assurance of earnings?

[yorgi] 22/6/2011 21:30

Gorvachof, Yes I would quite clearly