Avanti Communications Share Discussion Threads

[jeffian] 08/11/2017 14:56

That was certainly my rationale for investing years ago (I'm long gone now) but the sales just didn't live up to the expectations and borrowing ballooned to a point where the debt is almost unserviceable. Even if sales do grow exponentially from here, how long to get to cash breakeven, then profitability and what life will be left in the sats (20-yr lifespan and H1 has been up there 7 years already)?

[kmann] 08/11/2017 14:14

Everything now depends on data. All the international tech brands need to grow their base. And they have to land grab bandwidth as fast as they can.

[ilovefrogs] 08/11/2017 10:13

Good analysis, but in fact you're potentially being too generous. EBITDA for 6 months ending Dec 2016 was - $6m (vs -$3m from the same period the previous year)- largely due to a huge deterioration in the cost of sales. So, they have a challenge to even generate any positive cash flow, let alone grow sales.

[ilovefrogs] 08/11/2017 09:06

kMann - you need to actually answer the questions posed by Jak around the debt burden. H4 revenues are unlikely to come quick enough to avoid another large D4E which will dilute current holders again. the point is that even if the long-term opportunity is huge, it is very likely that Avanti in its current form will be around to enjoy it. the assets will survive, but will have been sold on by the debt holders to recoup some of their principal. In this event, shareholders get nothing. Your 'grand statements' are not actually addressing the real problem that Avanti has.

[kmann] 08/11/2017 08:32

You need to look harder at the VODAFONE connections. Next phase of growth.

[kmann] 07/11/2017 22:25

Anything in the cryptolockchain data sphere going through the roof.

Mobile data part of that arena.

Buyers today know this, buying before the ripple effect.

[kmann] 07/11/2017 16:36

Simple research, supply and demand. This is virtualy an off the shelf purchase now for a telecoms company with such near term commisioning. This is a "want it now" world.

The capicity and bandwidth available here is world class.

[kmann] 07/11/2017 13:06

As far as Hylas4 is concerned, operational life has been extended, so longterm is not only profitable but will be operational next year, enableing fast mover advantage as african expansion continues.

Demand id there ready to exploited hxxps://www.thisdaylive.com/index.php/2017/11/02/stakeholders-challenge-cto-on-international-collaboration-for-spectrum-allocation/

[kmann] 07/11/2017 08:37

Put another way, buy a company for £700 with a potential revenue of $250/year and control of an emerging market. New frontiers, all these telecoms and tv companies need them, avanti a cheap way in, fully developed now, ready to launch.

[jeffian] 06/11/2017 23:41

Aye. For someone who wants to take on £700m of debt.

[kmann] 06/11/2017 23:04

£10million market cap now for a satellite company in the middle of a tech boom. This is prime takeover material imo.

[kmann] 05/11/2017 20:52

Well it looks like the marketing push has begun. Data bandwidth is for ever growing. Should be an easy sell.

[jeffian] 01/11/2017 15:45

Aye, mate, that's what they said about H1/2/3. It's filling 'em that has been AVA's problem.

[ilovefrogs] 31/10/2017 10:13

The issues are not ‘historic̵7;, they are still very much with us. I think you need to broaden your consideration of signals.

[kmann] 31/10/2017 09:49

Poor past performance, but historic now, and now under new leadership. My buy signals are standard stuff and remain valid

[kmann] 30/10/2017 10:58

The company making operational progress with firm dates for launch/orbit. One to start taking note of at the very least.

I'd buy on a TR-1, increasing volume or bond buyback programme. All buy signals imo.

[ilovefrogs] 23/10/2017 14:00

That's right. The assets would keep operating under whomever buys the assets from the liquidator (appointed on behalf of the debt holders). Current shareholders get zilch.