Avanti Communications Share Discussion Threads

[peedlep] 15/2/2011 17:19

don't know what's up with ADVFN charts at the moment but looks like they finished at around £6.27 mid.

[pojscott] 15/2/2011 12:10

Just spoken to my broker--his buy/sells is very different to ADVFN's, he told me to watch the volume chart, as volume goes up so share price follows--volume low share price down on this stock.

[cocker] 15/2/2011 11:52

It looks as if a seller is depressing the share price @ the moment & once cleared we should start to see a decent rise.

[cestnous] 15/2/2011 10:03

Eddison report

(Sponsered) research out today. Full report worth a read.

Here is our latest analyst report on Avanti Communications:
 Avanti Communications is the only licensed Fixed Satellite Services operator headquartered in the UK.
 Their first six months to 31 December 2010 were, as expected, determined by the company's ceasing the installation of new business on the costly rented Ku capacity in the run-up to the launch of HYLAS 1 in November 2010
 Avanti is winning significant new sales, and is now in a relatively strong position to exploit the "data crunch", whereby demand for data will continue to outstrip global capacity to transmit it.
 We maintain our forecasts and price target of 1319p per share

[m.t.glass] 15/2/2011 09:46

"..The average prices per MHz per month are materially ahead of expectations..."


That was worth knowing. One concern I had was that Avanti might be winning early contracts at too low a price just to get things rolling.

[melody9999] 15/2/2011 09:23

So thats me in with a 3rd tranche at 630p. Good luck to all holders.

[yorgi] 15/2/2011 09:16

The recovery in our share price continues, nothing dramatic but in the right direction. Yesterday RNS put a lot of minds at rest as I'm sure the one telling shareholders that H1 is in service.

[restassured] 15/2/2011 09:14

This is a real comparable.....one day the market will suddenly have an AHA! moment.

Broker Daniel Stewart points to EchoStar's $2bn, including debt, purchase of Hughes Communications as giving an indication of Avanti's true value. Hughes is also involved in Ka band and has bought capacity outside of the US from Avanti. Daniel Stewart reckons that a similar valuation to Hughes would underpin its target price of 2525p a share – still four times the current share price.

[yorgi] 15/2/2011 00:46

That's the last we will be hearing from his rather ignorant foul mouth.

[melody9999] 15/2/2011 00:16

I particularly like this comment from the interims:
The demand for our services is very strong and our pipeline of opportunities continues to grow. The order book (also known as "backlog" in our industry) across the two satellites now totals GBP229 million with the average length of contracts being 7.2 years for HYLAS 1 and 4.3 years for HYLAS 2. The average prices per MHz per month are materially ahead of expectations.

So we have some GBP30M a year in the bag for the next 7 years. (229/7.2)

HYLAS 1 to go commercial next month, GBP30M a year revenue. IMHO this seems de-risked now .... compared with the position 2 months ago.....when the share price was 700p!

So I added at 580p last week and can see absolutely no reason why I should not add my final tranche now ....and then wait and watch. On the downside it is difficult to see AVN falling below the 575p support, which will be my stop loss. Initial target 1000p. DYOR

[backmarker] 14/2/2011 23:07

even if it takes 2 years to reach 2525 that would still be 100% pa compound growth.

yes, I'd settle for that.

[cupra kid] 14/2/2011 20:33

I'd settle for 2525p!

[restassured] 14/2/2011 20:20

Look at paragraph six..........

Avanti Communications set to soar
Mon 14 Feb 2011


LONDON (SHARECAST) - Satellite operator Avanti Communications is being transformed this year and the benefits will show through in the next financial year.

During the period the HYLAS 1 satellite was placed in orbit. It is operating at 1db higher power than expected. HYLAS 2 is being built and the financing of HYLAS 3 is being arranged.

Revenues fell from £3.26m to £1.28m in the six months to December 2010, while higher costs meant that the loss jumped from £440,000 to £6.31m. Avanti is winding down its older satellite activities and concentrating on the Ka band services of its HYLAS 1 satellite. This will show through in revenues next year.

The order book is worth £229m. That is orders for both HYLAS 1 and HYLAS 2. The average length of HYLAS 1 contracts is 7.2 years. HYLAS 2 contracts are shorter but still average 4.3 years.

Avanti had $64.9m in the bank at the end of 2010, while debt was £90.9m. Even so, interest costs are low. HYLAS 1 will be highly cash generative once it starts building up its revenues and that debt will come down relatively quickly depending on how much is spent on the other satellites.

Broker Daniel Stewart points to EchoStar's $2bn, including debt, purchase of Hughes Communications as giving an indication of Avanti's true value. Hughes is also involved in Ka band and has bought capacity outside of the US from Avanti. Daniel Stewart reckons that a similar valuation to Hughes would underpin its target price of 2525p a share – still four times the current share price.

AIM-quoted Avanti is expected to lose money in the year to June 2011 and then move into profit in 2011-12.

HYLAS 2 should be launched in the middle of 2012.

[backmarker] 14/2/2011 18:17

fwiw, when I checked the bid/offer for 1,000 on barclays late afternoon the spread was 625.05-625.5, that's only 0.45p

small spreads are usually a sign of improved trading and steadily increasing sp

[restassured] 14/2/2011 17:53

Advfn has been wrong all day with some crazy priced trades going through on several stocks.

The shares closed up 3.49% at 626p

[yorgi] 14/2/2011 17:44

Yes I think we are up today, ignore the mid price here on ADVFN, the changes carried out by the LSE seemed to have messed up ADVFN's system today. Mid price does throw up some silly numbers at times but I think bid and offer correct all the time. The silly mid price movements are the ones that have caused the spikes on the graphs.

[pojscott] 14/2/2011 17:37

625/629 share price as on AVN web site??? Is ADVFN wrong???

[pojscott] 14/2/2011 17:31

On Moneyextra it shows the share price is up today???

[restassured] 14/2/2011 17:24

Prob hedge funds playing games.

[pojscott] 14/2/2011 17:22

I wish I could fathom whats going on with this share price, it just keeps going down!

[restassured] 14/2/2011 15:42

We will get new broker updates in the next few days.

[yorgi] 14/2/2011 15:13

Thats good to know Backmarker :-) A few days of 2% or 3% will do nicely although a few of 10% or 20% would be better of course.

[backmarker] 14/2/2011 14:55

yes, no need to panic, guys.

i just looked out the window and up into the sky, and can confirm HYLAS-1 is sitting there looking pretty ;~}

[julcester] 14/2/2011 14:00

lol, sorry guys, that just made me choke on my pannini (I graduated from sandwiches after successful Hylas launch.)

Profanity edited.