Avanti Communications Share Discussion Threads

[djmozy2] 15/3/2011 07:13

Had a top up yesterday as was ridiculously cheap. Feeling happy about that now.

[djmozy2] 15/3/2011 07:12

Woohoo - that was a great RNS. Satelite good to go and new contract win. Watch the stock orbit from here. Hope the shorters had fun as if they haven't closed their shorts then they are toast now.

Avanti Communications Group plc (LSE: AIM), the broadband satellite operator, is pleased to report that it formally completed in orbit testing of the HYLAS 1 satellite yesterday.

The testing process confirmed that HYLAS 1 is working in conformance with specification and, in some areas, delivering higher performance than originally specified. The satellite lifetime is expected to be at least six months greater than planned and the available power is several percentage points better than specification. This will translate into improved service quality, flexibility and usable capacity.

The provision of services on HYLAS 1 will now commence. The first live customer service in the UK will be installed next week. Avanti has a test customer base of 5,000 end users whose service is delivered with leased Ku band capacity. The migration of these customers to HYLAS 1 will begin on April 4(th) . Avanti has over 60 Virtual Network Operator customers in 16 countries in Europe who have bought capacity. Many of them are also migrating existing end user customers from leased Ku band capacity on other satellites and this migration also begins on April 4(th) .

Commenting, David Williams, Chief Executive of Avanti Communications, said:

"The in orbit testing phase of HYLAS 1 has been a complete success and puts us in a strong position for future growth.

"With Europe's first fully operational broadband satellite, Avanti will now provide a range of satellite data communications services to consumers, enterprise and governmental organisations across the UK and Europe. In such a vast market with so much growth in data demand, and a strong customer base already committed, we are highly confident of achieving rapid commercial success for this powerful and flexible satellite."

Contract Win

Avanti is also pleased to announce that yesterday it signed a seven year contract with a new Virtual Network Operator Customer for the sale of 80 Mb of capacity (with volume beginning at a lower level in year one and rising to 80Mb to match the Customer's expansion in end users). The contract, which commands pricing which exceeds market expectations, is worth EUR7.1m over the seven year term. The customer has approximately 3,000 satellite broadband end user installations in Europe which currently use Ku band capacity on a competitors' satellite. The Customer will migrate that existing client base to HYLAS 1 and then grow its business further with Avanti. For reasons of commercial sensitivity during this migration period the Customer is not named.

Commenting on the contract win, David Williams, Chief Executive of Avanti Communications, said:

"The signing of this contract is significant since it further demonstrates that expert customers in Europe choose to work with Avanti. We offer a flexible, service oriented approach and reliable and well regarded technology. Avanti has announced a steady flow of contract wins in the last two years which underpins our confidence in fully utilising our satellites at attractive prices

[geheimnis2] 15/3/2011 07:10

nice rns guys

[yorgi] 15/3/2011 02:27

Who knows Chrissey :-) Damn awful chart that's for sure. I will admit I have no idea where this is going short term that's for sure and who has. As long as Hylas1 is still up there and working :-) then I'm quite confident over in a few months or hopefully a few weeks we will be a lot higher and Hylas2 will be factored into the price but I'm not going to try and make any predictions.

There are a few more doom merchants here now calling this is going lower and making rude remarks about TW but he calls more right than wrong but as everyone who is in this game whatever they tell you they don't get it right all the time. Malcolmmm has just given the example of Jubilee Platinum going down and down despite TW having tipped it but it came good in the end and if one bought in around 9p as Malcolmm did then that was very good profit by anyones standard.

So I'm still holding, yes great pity I hadn't sold out earlier and was ready to buy back now but I didn't and at the moment sit on a paper loss. I shall continue to watch and I intend to add funds being available at the right time for getting a great buy.

[malcolmmm] 15/3/2011 00:27

TW said the same about Jubilee Platinum, he went on and on about them and they fell and fell, I eventually bought in at around 9p and they kept falling. I sold out at about 48p making around 12k , he was right in the end

[chrissey] 15/3/2011 00:07

like I said, damn awful chart, support is at 370p, if that breaks, could go anywhere, the models don't work from there!

take Hylas 2 out of the equation and you have fundamental value of 290p a share, issue then being we play the 'launch risk' record all over again anticipating all is well with Hylas II.

from where we are now, I can't see more than 80p-100p hike on commercial service rns.

how many people would have expected the same rise from 650p, probably everyone, expecting to get back close to immediate post launch price.

will buy more below 400p but that is probably as good as it gets for me.

I was right, nothing more than a bacofoil clad Xbox, but with potential!

GLAH

[derekhess] 15/3/2011 00:04

Its a good company and I wouldn't sell but I honestly wouldn't suggest buying until we see some base for the shareprice, otherwise you could easily end up buying a load before another leg down. Having patience pays off sometimes.

[johnrxx99] 14/3/2011 23:50

You mean in the way the backed sub prime, lol

[malcolmmm] 14/3/2011 23:20

I cannot see investment funds and banks backing these in todays environment if the concept is flawed.

[tsmith2] 14/3/2011 22:47

anyone any comments on reported trdes 1124-1134 on here..

[jimbo55] 14/3/2011 22:47

Agreed Malcolm. Obviously, there are risks, but when the panic merchants like montypunisher (love the name) turn up, it's generally a good sign the bottom is almost in.

Avanti have fallen way below their 200 day EMA. Unless something is badly wrong at the farm (there's always that possibility, but given the Board's track record, I doubt it and am prepared to take the risk), this stock is looking oversold on panic and stop-losses being triggered.

Of course, I accept I could end up bowing to the genius of posters such as montypunisher and Twister69, but I'll take that chance. ;)

Kind of cursing myself for not selling some when the 21 day EMA crossed the 50 day EMA, but I was too busy snowboarding in Japan at the time (pre-Tsunami), so will accept this philosophically.

[malcolmmm] 14/3/2011 22:41

I used to hold £20k of these but sold almost all at 720p , still hold a few, just wondering wether to buy back, if they do fall to under 400p it will be very tempting, could be the bargain of the year

[yorgi] 14/3/2011 22:02

In one word "no'

[giovannina] 14/3/2011 17:58

SC and his fellow shorters one of these days they will close their positions and go long.....one of these days very soon....;o)

[derekhess] 14/3/2011 17:22

They have reduced to 5.99% so now they can sell just under 1% of the total shares in issue without issuing an RNS, seen the same thing done at Yell by a few IIs.

Its not a good sign. Neither is telling a shareholder to F off.

[tsmith2] 14/3/2011 17:19

Anyone else seeing the v large reported trades..

[yorgi] 14/3/2011 17:14

Whoever is right, I don't think it is SC, he and his fellow shorters are clearly winning that battle at the moment. However that does not mean that they are right on the value of AVN but for the moment that is all the market is valuing us at.

[yorgi] 14/3/2011 17:11

Yes, Rwilliams all that was "chewed" over when SC first posted on here that he was shorting :-) TW would appear to have not been very pleased about it and promptly posted a detailed rebuttal of SC's shorting argument but SC has continued to insist he is right !

[rwilliams57] 14/3/2011 17:06

Tom Winnifreth is CEO of Rivington st. holdings. Avanti is a corporate client of RSH.

The website T1PS.Com is owned by RSH, and winfrith is the author of over 12 recommendations this year on AVN.

Then his colleague Simon Cawkwell who also writes by proxy for T1Ps.com decided to open a short position on the stock

[yorgi] 14/3/2011 17:04

Geheimnis,

I suppose that would seem more likely but if as we do expect to hear that Hylas1 is in service any day now then that will surely lead to a rise and I would have thought a far more sensible time to sell some. However we don't know the reason that have sold some and it may have nothing to do directly with AVN.

Lets just hope your thinking is right and we are abut to hear that in service RNS.

[geheimnis2] 14/3/2011 16:55

yorgi

i guess they might have taken a bit more off the table if they thought something was wrong!

sounds to me as though hylas 1 will be announced to be in commercial operation this week - should lead to a bounce then hopefully big contract wins will see this recover strongly