Avanti Communications Share Discussion Threads

[sg31] 05/12/2007 22:02

Woozle,I dont think they intend to place shares to fund the next one.As i understand it they will use income from sat1 presales and also presell space on sat2 to fund it.Thats one of the things i like about AVN they don't like diluting their shareholders.

[woozle1] 05/12/2007 21:48

Rapier .. I read your post and thought it was good .. I would highlight one risk that you don't mention and that is the share price .. so long as it stays low it makes it difficult to launch another bird .. the company has big plans and needs a big share price to realise this ..that being said, if it persists too low for too long I imagine that it will be acquired .. W

[cestnous] 03/12/2007 14:28

Well at least the chart is looking better on this good news.

[terryebby] 03/12/2007 12:02

they used to say E1m pa for 40 transponders = E40m per annum or E600m over 15 years. This release says price is actually 20% higher so thats E48m per annum or E720m over 15 years. Prices should go higher also towards the european average of E2m.

SO annual revenues could be £32m which translates to a net profit of about £15m, or about £2 a share ??

[terryebby] 03/12/2007 11:21

it means they have sold a significant chunk of theri capacity to a goodish custoemr atr a prioce that is higher than expected. Proves the market is out there and they can tap it. No longer specultaive

[terryebby] 03/12/2007 08:31

Now THATS the news we haqve been waiting for. The price is higher than expectations which means an upgrade to forecasts must be coming ? Since this is a DCF kind of business that must mean a sensible increase in the brokers price forecast

[currypasty] 03/12/2007 08:14

RNS Number:9613I
Avanti Communications Group Plc
03 December 2007


Date: 3 December 2007

On behalf of: Avanti Communications Group plc ("Avanti" or "the Company")

Embargoed until: 0700hrs


Avanti Communications Group plc

* #8.75m Contract Win


Avanti Communications Group plc (AIM: AVN), the satellite operator, is pleased
to announce the sale of 54Mhz of HYLAS satellite capacity (forward and return
path included) for a term of 15 years beginning at launch in 2009 for #8.75m.
The customer, STM Group, a world leading supplier of IP networking solutions via
satellite, intends to use the capacity to provide broadband and corporate data
services in Europe.

The transaction prices HYLAS capacity at Euro1.2m per transponder equivalent (one
fortieth of HYLAS capacity) or #900 (Euro1,323) per Mhz per month which
demonstrates that the market values HYLAS capacity at a higher level than
expectations at the beginning of the project.

Commenting on the contract win, David Williams, Avanti's Chief Executive, said:

"I am pleased to report that, as expected, we are converting our sales pipeline
into a backlog of committed revenues in advance of the launch of HYLAS. We have
growing confidence in our market and in the value of our satellite capacity,
which we expect to reinforce with further contract wins soon."

[terryebby] 30/11/2007 17:38

Rapier
Your detailed post on Fool is really helpful, thanking you muchly
Terry

[sg31] 30/11/2007 10:37

Rapier,my reply wasn't a dig at you to suggest you were wrong,just to point out the daftness of the market.This is my largest holding and i have held since the satellite business was first mentioned.

[jelignite] 30/11/2007 10:31

thanks for the info

[terryebby] 30/11/2007 08:08

and the directors were buying in the last month which means they obviousaly have reason to be cheerful

[rapier686] 29/11/2007 23:54

Yes - since nobody was wanting to sell them and the marketmakers want to make a market, not go short. Since I did a decent proportion of today's business, I should have a fair idea. And they were not remotely interested in selling more than 3k at a time and that only when they had a broker on the phone and so had no choice.

As to why I was buying despite moving the price against me, I attended the AGM today and found 3 of my concerns were unfounded*. Which leaves them looking very very cheap to me and I was buying this afternoon.

Perhaps if I took things slower, I'd have less of a market impact. But I'm clearly not the only buyer out there, so equally I could be sitting on the sidelines whilst the others move the price.

* I've written up the meeting here

[sg31] 29/11/2007 22:58

Rapier,Tx for reply,so let me get this right...If someone buys £50G of shares it adds £6M to the market cap.....Anybody got any spare cash?..LOL

[rapier686] 29/11/2007 21:42

'Cause it's very illiquid.

Only 30k shares traded but all on one side of the market.

The price rise doesn't seem to have tempted any sellers out. Yet.

[sg31] 29/11/2007 21:28

Nice rise today,has anyone any idea why,I know we are undervalued and should be higher but what sparked an 11% rise when the indexs were up less than 1%.

[sg31] 22/11/2007 17:57

Its a tree shake.....Honest :-)

[woozle1] 22/11/2007 09:46

Another day, another fall!

W

[woozle1] 16/11/2007 19:38

If you want to short, try the banks or the market; at least you won't cained when a bid appears.

W

[sg31] 15/11/2007 19:27

The share price goes down a bit and the derampers appear,stockscreeners above obviously doesn't know the company very well.Short term we are down but this has never been a short term play.

[hindsight] 15/11/2007 14:25

Agree woozle1, risky short
It would be a snip to someone like Inmarsat that trades on 50x earnings