Avanti Communications Share Discussion Threads

[madigansar] 29/6/2014 18:26

nb I have no position - if I have time I post their recommendations on the boards for each stock.

[madigansar] 29/6/2014 18:19

Award winning, respected:





It is a larger report on 3 stocks - I copied the part relative to each stock and put it on the respective thread.

If you want the whole report put up a one off email address and I will send it.

[megabear] 29/6/2014 18:07

That Galvan piece is pretty light on numbers and detail. Is that a snippet of a larger note? Also, I have never heard of Galvan. Are they well known?

[madigansar] 29/6/2014 17:12

The others are AVO and EPO

AIM for Profit – 3 High Potential Growth Stocks:

Avanti Communications (AVN)

Avanti Communications (AVN) sells satellite broadband services to big telecom companies, which then re-sell the capacity to business and residential customers.
Satellites provide "universal coverage" – overcoming the limitations facing traditional telecommunications networks.

Avanti's Ka-band satellites, (covers frequencies of 26.5–40 GHz) carry eight times more data than lower frequency satellites and allow connectivity to even the most remote and hard-to-reach regions, bringing new generations of service providers and end users on-line.

Avanti's first satellite, called HYLAS 1, launched in November 2010. It was the first superfast Ka-band satellite launched in Europe and has been used to help address poor broadband coverage in many parts of Europe.

The second satellite, called HYLAS 2, was launched in August 2012 and extended Avanti's coverage to Africa, the Caucasus and the Middle East.

HYLAS 3 is due to be launched next year and will also serve Africa. Following that, 80% of Avanti's fleet capacity will address the high growth markets of Africa, Eurasia and the Middle East.

These markets, particularly Africa, are enjoying strong economic growth but have poor ground-based infrastructure.

Avanti is perfectly placed to tap into the "golden age" of Africa.

The shares have had their ups and downs during the last few years, reaching over 700p in 2010 before crashing all the way down to 133p due to a profit warning in the summer of last year.

Since then the shares have been recovering as Avanti has continued to win new contracts and grow its global customer base. The company maintains it is on track to sell all its available capacity during 2016.

A prestigious contract win with Vodafone has provided Avanti shares with further momentum and the company says that the efficiencies generated by the use of Ka band, along with the quality and flexibility of design have generated enduring competitive advantages.

The Galvan team views this recent recovery and Vodafone contract as a key win for Avanti, and with revenues set to grow, we expect the shares to keep climbing.

[revoman] 29/6/2014 08:50

Yes m, can you post the text here please.

[madigansar] 28/6/2014 20:43

Galvan have just tipped this - if you want to see the text let me know.

Madigansar

[revoman] 28/6/2014 18:20

Well done rogk, I always love your positivity. How did they get the bond issue away so quickly,,,?

[bulltradept] 26/6/2014 15:12

TBF I think the volume's about the daily average.

[gekks] 26/6/2014 14:57

Marked down pretty severely on minimal volume.

[jojaken] 24/6/2014 07:38

Wilksey, nice find with the Moodys Ratings Report. It contains all sorts of interesting snippets of info.

-reaffirms Avanti will meet profit forecasts for June 30, although c. USD65 million but NOT USD70m as Jeffries had forecast. (Will lower my expectations for EDITDA to USD15m accordingly.)

Avanti still has to pay a further USD53 million towards HYLAS 3, which Moody's expects to be funded from internal cash generation and cash balances, (No equity raising in 2014/5 as Edelman had predicted) and cash-flow positive after interest payments enough to cover Hylas 3, but not 4 as . . .

Moody's say, "The proposed investment in HYLAS 4 will amount to around USD350 million and will require additional financing to be raised, the absence of which would weigh negatively on cash flow and liquidity" !!!

Moody then make it doubly clear,"Senior Secured debt in the future will only be available if USD100 million of further subordinated capital is raised beforehand or concurrently. These additional funds will be used to complete the build and launch of the HYLAS 4 satellite."

Therefore more equity will have to be raised, but . . . not until 2016 as
they "expect that the business will be capable of funding itself over the next 12-18 month period. As the satellite capacity utilisations ramp-up, we anticipate increasing cash conversion due to the high operational gearing"

However to end on a bullish not, beyond the immediate 12 -- 18 months, Moodys say they "expect that as satellite utilisation ramps-up, the stable cost base will lead to significant drop through of revenue to the bottom line and ultimately into strong cash conversion. The incremental growth in EBITDA will drive solid deleveraging, while the low capex nature will support positive free cash flow generation."

SO expectations for a much bigger business but WILL need equity financing beyond 2015.

[wilksey11] 24/6/2014 07:06

Intermatica partners with Avanti Communications to extend its European satellite broadband coverage from there web site

[wilksey11] 23/6/2014 15:09

here,s a link to moodys report

www.moodys.com/research/Moodys-Affirms-Avantis-Ratings-After-Announcement-To-Issue-USD-150--PR_302236?WT.mc_id=NLTITLE_YYYYMMDD_PR_302236

[wilksey11] 20/6/2014 10:48

good find jojaken

[jojaken] 20/6/2014 03:47

Avanti's part of the award equals £885,640 and covers Scotland and N.I. according to

[wilksey11] 19/6/2014 13:40

someone clearly thinks this is a bargain as i do they just brought 90,000 shares could do with a few more like that.

[wilksey11] 18/6/2014 09:54

i,ve got a feeling that last contract announcement which was in a new market is to do with voda they are buying Cobra Automotive Technologies and one of the things they do is vehicle tracking but this is all a guess

[jojaken] 18/6/2014 08:13

If the quietness is deafening, and news of how projects are progressing is what is needed, then try this update from Zimbabwe on a deal only announced a couple of months ago.

hxxp://source.co.zw/2014/06/telone-satellite-broadband-to-drive-datas-revenue-contribution-above-25pct-md/

It all sounds quiet promising, with a quiet a steep ramp up, with $5 million dollars in annual revenue for Telone in the first year alone.

[jojaken] 17/6/2014 06:56

6 month revenues of $25million 1st and 2nd Q average $12.5m
9 month revenues of $39million 3rdQ = $14m
12 month revenue (forecast) $70 million 4thQ = $31m

*If* they hit forecasts, and that had been seriously in doubt, not least by the likes of Edelman.

But the CEO (DW) spoke of a J-curve, with the capacity being full in less than 2 years. With this latest announcement, they have not only said they need a new sat for 2017 as, despite the capacity of Hylas 3 coming online(still unlaunched), they will need the capacity, but that they are expecting to meet forecasts for the full year with only 2 weeks to go!

Now if this revenue can be converted into EBITDA, expect the 9month -$2m increasing to +$20m, in one quarter.

If this is the J-curve, after the numerous announcements in the last 4months, that should start to be be cumulative Q on Q next year, and at long last cash generative.

In which case the bond sale really would be for Hylas 4 not for running the company!

Again If you believe what they are saying the expanded Q4 update in a few weeks should have interesting results for long suffering shareholders.

The question really is can we trust that Avanti are finally at a that point of inflection after so so many dashed hopes!

Here's to new hope!

[woozle1] 16/6/2014 15:16

Investors want to see the cash!

[bulltradept] 16/6/2014 14:10

And the price drops.

[jojaken] 16/6/2014 08:12

Nice piece in the FT over the weekend- usually a much smaller piece, without any analysis.



Again the most important element, at least as the share price is concerned, is the confirmation that they WILL make analyst's forecasts.

"Eric Beaudet, analyst at Natixis, said that the funding move was positive for the company as it "underlines that demand for its current satellites is strong and that a new satellite is needed given group plans to fill its current satellites within two to three years".
The financing would lower the group's average cost of debt, he added. The company also confirmed that trading was in line with forecasts from analysts, which would imply good growth in sales in the fourth quarter."

[jeffian] 13/6/2014 20:13

I think we're holding our breath.