Avanti Communications Share Discussion Threads

[jonnib] 07/5/2010 14:54

With all the turmoil RE Greece at the moment, does anyone believe these will drop significantly in the short term...thinking about topping up but curretly holding back.
I have no doubt about the long term here.....

[someuwin] 07/5/2010 08:17

Good time to add imo.

[someuwin] 06/5/2010 18:45

Part of a new article about graduating from AIM to the Main market -

...


Avanti – all set for lift off

Selling satellite broadband capacity and services 'business to business' to telecoms companies around the globe, Avanti Communications' share price continues to gain altitude on contract wins and market excitement. As such, the company, an AIM giant with a £353 million tag that analysts believe could double or even triple in the year ahead – one broker has set a lofty £13.80 price target – looks a leading candidate for a move to the Full List.

Avanti is the company behind HYLAS 1, which will be the first super-fast broadband satellite launched in Europe under a project advised upon by the European Space Agency. It is undergoing final testing and is set to be launched in the third quarter of this year.

Waiting in the wings is a second, larger satellite, HYLAS 2, for which debt and equity funding was completed in January. Earmarked for launch in 2012, HYLAS 2 will extend Avanti's coverage to Africa and the Middle East.

Making great strides in selling capacity for its satellites – it recently announced a contract with a government customer for the sale of capacity on HYLAS 2 – Avanti shares are well worth buying and locking away.

Astute CEO David Williams is particularly excited by its market opportunity, based upon the 'wider acceptance of the role that satellite has to play' in managing the 'explosion in data across all telecoms networks. We have a massive opportunity to provide the plumbing to telecoms companies, and the market for IP-transit is bigger than we ever figured.'

[yorgi] 06/5/2010 15:59

The share price sure does make some strange movements in the course of a day.

I see the share price making steady headway as long as AVN continue winning contracts, and no reason to think otherwise. As we approach launch for Hylas1 it will be interesting to see what the share price will do then.....gather pace....drop back if people get a little nervous but I would then expect with launch completed and H1 operating that the share price will move on rapidly then

[smarm] 06/5/2010 15:31

superyids - it is difficult to ignore short term movements and not a good idea to rely on tips given by others. What you have to do is look at the facts that are available from the company itself, and make a decsion on where you think fair value lies.

AVN is difficult to value. It only has a product if it can launch the satellite and, however much it attempts to derisk the project, and it has done all it can, failure is a possibility.

That aside, you now have to look at the contracts that have been secured for Hylas 1 and 2, and you have to ask yourself some what-if questions. What if they can sell all their capacity at the rate they are now. What does Hylas 3 bring to the party...and so on. Leg work; that's what's needed.

When you have done that, and it will take you a while, you will be able to put on it a value that you think is realistic.

S

[jimbo55] 06/5/2010 08:14

superyids, anything can happen when the markets go irrational. Saying that, Avanti has held up very well this week. It's a tough one to call, so I'm not even going to try.

Possibly your least risky option would be to drip feed money in.

[superyids] 06/5/2010 08:02

I initially bought into Avanti on the back of the T1ps rec, which still sites 800p as a minimum valuation for Avanti

However do recommendations such as this hold only if the market in general remain at the levels they are now, or if they go higher in the future or what if there is a big sell off do these predictions on share price still hold?

I suppose this qn applies to any stock recommended although i am interested in avanti primarily at present!? Thanks

[sco77harris] 05/5/2010 14:57

this share really is incredible, its holding its own in one of the worst if not worst weeks on the markets this year.

[dolores123] 05/5/2010 14:34

Somebody just bought 50,000 shares!

What a nice profit if they hold to £13 ps!

[smarm] 05/5/2010 13:09

I don't suppose they could hit on some other share for once...to keep hitting this one is getting tiresome. Very odd.

S

[yorgi] 05/5/2010 10:42

Can't hold a good share down :-)

[yorgi] 05/5/2010 10:32

It was a good opertunity earlier

[terryebby] 05/5/2010 10:30

100,000 shares traded in AIM and PLUS - looks like some clever chaps are buying on the dips ;-)

[terryebby] 05/5/2010 09:08

have you heard about the Bubble and squeak sovereign debt default ? I suspect that is why everything on my screen has been red for two days ....

[tritan] 05/5/2010 08:54

What the frigs happening today then?????

[yorgi] 04/5/2010 11:56

Thanks for that Cestnous

[someuwin] 04/5/2010 11:47

...Cheers cestnous - makes a good read


"Valuation

* Notwithstanding the recent announcements and the rally in the shares, we
continue to believe that there is still plenty more to go for. We estimate that
HYLAS 1 is worth between 330p and 400p per share and that HYLAS 2 should
be valued between 500p and 700p per share. This gives a valuation for the
whole business at between 830p and 1100p.

* The shares are still trading at a substantial discount to both our bottom and
top end valuation ranges and share purchases by directors during March this
year validate the view that this business is undervalued.

* We have been of the view for some time that Avanti would be of strategic
interest to one of the large players with limited Ka band capacity and who
could extract more value out of the licences by putting more marketing and
branding power behind the business. In February 2009, there was a tentative
and unsolicited approach to management that was rejected. Since then
business has increased in value, but this has not been reflected in the share
price and may well flush out more interest from parties looking to establish a
Ka band foot print."

[cestnous] 04/5/2010 11:40

Nice Eddison Report out valuing AVN at £830 t0 1100p

[someuwin] 04/5/2010 08:03

Off to a good start.

[dolores123] 01/5/2010 10:50

Jungleboy have a look at the cenkos website.

[jungleboychris] 30/4/2010 20:22

im just gutted that I didnt have funds when i wanted a few weeks ago when it dropped to almost 400p. I see this as a long term cash cow though and as long as the launch is good then extremely undervalued. I'm not sure how much higher the share price will rise before launch but I invested almost all I can into AVN yesterday at 514p. Got a little left over to buy on a dip just in case but medium term, I am hoping to at least double my money with little risk. I have one question however, does anyone know what sort of margins each satelite is predicted once up and running?

[someuwin] 30/4/2010 15:34

Looks like we'll soon be breaching the all time high.

[dolores123] 30/4/2010 11:13

Its also so visible. Can't believe the share price isn't higher.

[someuwin] 30/4/2010 11:09

Spot on Dolores. This is as close to a 'dead cert' as you can get imo.

[dolores123] 30/4/2010 11:03

Someuwin I'm adding as well. This might double before the launch. If it doesn't it will after the launch.