Avanti Communications Share Discussion Threads

[yorgi] 13/7/2010 16:41

I'm sure your right Chrissey but I don't think 6 weeks is that big a deal

[chrissey] 13/7/2010 16:08

the unclear Hylas 1 launch date is holding this back, 6 weeks isn't insignificant and it could extend out!

clear the delay and successful launch, 700p is my conservative expectation, I think the 1000p plus days are some time out yet.

[yorgi] 13/7/2010 14:07

Very quiet still despite reports from various sources detailing how good a buy AVN is. I guess people want to see Hylas1 up there in orbit performing as it should. I'm quite confident by that time the share price will be well north of where we are now

[someuwin] 12/7/2010 20:23

12th July 2010

GE&CR

Avanti Communications* Placing & Trading Update Comment - Reiterate 'Buy' at 484p

Avanti Communications*, the broadband satellite company, has today announced a placing (conditional, amongst other things, on shareholder approval at a General Meeting to be held on 28th July) of 16,279,070 new shares at 430p each with existing and new institutional shareholders to raise £70 million (before expenses). This is principally to enable the company to initiate the purchase of its third satellite, Hylas 3, "in order to take advantage of possible new business development opportunities". We continue to believe the cash flows Avanti's satellite operations are poised to start delivering remain far from discounted in the current share price and our stance remains buy.

The placing funds are to be primarily used to repay facilities of £32 million (£53 million including accrued interest and an early repayment discount) borrowed in order to finance Avanti's Hylas 1 satellite – and necessary to be repaid in order to enable the company to advance its current Hylas 3 plans and a plan to re-domicile Hylas 2 satellite assets offshore which should generate significant tax savings. The strategy for Hylas 3 is to begin the procurement with a relatively small cost commitment with the aim of negotiating sufficient customer commitments to support long term financing. Given the demand the company has seen for Hylas 1 and 2 (it reports on the latter that the progress being made means it "is confident that it will be able to sell HYLAS 2 capacity within the expected timetable"), we regard this as a sound strategy.

The company added that "trading has been satisfactory in the financial year ending 30 June 2010 and performance is in line with market expectations" but did note that "although the satellite itself is expected to be ready on schedule, uncertainty surrounding the readiness of the new Soyuz launch pad in French Guyana has led to a scheduling risk", with an estimated potential risk of delay of up to six weeks from the proposed end September launch. However, a potential such delay is insignificant in relation to the long-term cash flows Hylas 1 looks set to still soon be generating and directors John Brackenbury and Nigel Fox showed their continued confidence in the company, taking £34,400 and £5,000 more shares respectively in the placing – and Avanti is also intending to seek a move from AIM to the main market in due course.

We expect the use of the placing funds will prove highly value-accretive down the line and thus continue to regard a share price target of 1125p for Avanti shares as conservative. As we move towards the launch of Hylas 1, we continue to view the current share price as presenting an attractive opportunity to get on board what is a fast emerging intercontinental satellite player. At 484p, we continue to view shares in Avanti Communications as a compelling buy.

[sco77harris] 12/7/2010 18:17

thanks smarm

[dolores123] 12/7/2010 16:57

Looks like two big buys have been put through!

[plasterkay] 12/7/2010 15:56

I always think if the PE is very high then placings are great. If PE very low then buybacks are the way.

[debbiegee] 12/7/2010 13:49

Have found it thanx

[debbiegee] 12/7/2010 13:06

someuwin ,Hi is the Daniel Stewart reiteration from today please ?
Also thinking of picking up more if there is a dip but wary ,Thanx !

[yorgi] 12/7/2010 10:15

Thats a good gain from here ! I will add if it drops down to the 450p area again if not will be happy with what I'm holding

[someuwin] 12/7/2010 10:12

Daniel Stewart reiterate 'BUY' with 1,111.00p target.

[yorgi] 12/7/2010 10:05

Exactley Someuwin

[someuwin] 12/7/2010 10:04

Yes, all sounds very promising to me...

"The principal rationale of the Placing is to enable Avanti to initiate the purchase of its third satellite, HYLAS 3 in order to take advantage of possible new business development opportunities."

[yorgi] 12/7/2010 10:01

Long term undoubtablty good news

[sidam] 12/7/2010 09:59

How about some numbers. Placing in theory dilutes the historic values, but new Satellite has substantial more value than that. Also move of domicile to low tax increases value of HYL3 quite significantly and there is 60p more net cash per share (actually 60p less debt)as PIK bond has been repaid.

HYL3 could add between £4 to £7 (or more) per share to value depending on financing and capacity utilisation and pricing.

Looks good to me.

[yorgi] 12/7/2010 09:04

It's a mixed RNS but apart from still some uncertinty of launch date they are going ahead with Hylas3 which all bodes well for the long term. As usual market does not seem sure which way the share price should go

[sco77harris] 12/7/2010 08:23

and market seems to agree so far

[sco77harris] 12/7/2010 08:16

sounds quite good when read through, and to have 2 maybe 3 satellites up before inmarsat and at a lower price will hopefully make them a market leader.

[julcester] 12/7/2010 07:53

Dilution not good, but debt-free is good. The launch delay hacks me off more than the placing does.

Even with placing, I can see share price doubling within 6 months.

[codhead1] 12/7/2010 07:21

A 3rd sattelite good. Clearing off any debt very good. Dilution not so good but the benefits soften that.Hopefully not too much impact on the share price but I would think the brokers would be reducing their big price targets given that dilution.If I remember correctly somebody on here mentioned some time ago there were problems with the launch vehicle but the company kept issuing statements saying differently. I suppose I can cope with a 6 week delay if that is the truth. Stepping back from the impact doesn't say much for the U.K. being open for business when a growing excellent company the likes of AVN are moving offshore to avoid taxes etc.

[julcester] 12/7/2010 07:17

hope so! i don't want to have to pay £5 for more.

[portman88] 12/7/2010 07:14

Possible slippage into November, anyone else think the share price is going to slip aswell?

[someuwin] 11/7/2010 16:20

Yup - with the recent high profile problems with other satellites, I think we can be sure that Hylas-1 will be bulletproof.