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Avanti Communications (AVN)     

hlyeo98 - 04 Aug 2010 11:22

This is a BUY tip from Tom Winnifrith...

Sorry if this is rather boring as the market cap is now c 350 million but at 470p Avanti Communications (AVN) - a stock held in the SF t1ps Growth Fund - is really very cheap whichever way you look at it. It is now funded to launch 3 satellites into space ( and fully insured if the worst happens which will only delay the programme by 6 months anyway). You value Avanti by discounting back the net cashflows these satellites will generate. That depends on how much capacity is sold and at what price. Use a model based on very conservative assumptions and this stock is worth 13 ( the lowest valuation in the market). But that model uses assumptions about sales prices which are already being beaten by forward sales Avanti is booking today. Use those prices and you head up to the 22.50 value of house broker Cenkos. My own view is that Avanti will do better still and this stock could therefore be worth 25. Exc itement will mount as the first satellite is launched later this year. Remember those valuations are the Net Present Value of future cashflows ( i.e. what they are worth today). If you can buy at under 600p ( as you can now) you should do so and sit back and wait. I suspect after HYLAS 1 is launched you will never again be able to buy at less than 600p.

ptholden - 26 Nov 2010 15:58 - 137 of 382

Me too, scaredy that is, but I have a daily trading target in mind and AVN has just provided 160% in 24hrs, so I'm happy with that.

Dailos - 26 Nov 2010 16:01 - 138 of 382

Looks like its first class for tubby.

ptholden - 26 Nov 2010 16:15 - 139 of 382

Fook, closed too early, in auction :-(

Dil - 26 Nov 2010 16:18 - 140 of 382

lol ... strap yerself in pt your along for the ride now mate

:-)

Dil - 26 Nov 2010 16:25 - 141 of 382

I just got a quote pt ... 667p , I laughed.

Dil - 26 Nov 2010 16:27 - 142 of 382

658p now

656.5p now

649p now

654p now

skinny - 26 Nov 2010 16:27 - 143 of 382

Calm down :-)

Dil - 26 Nov 2010 16:28 - 144 of 382

643p now

650p now

... sod it , be a tenner by xmas i'll wait

Dil - 26 Nov 2010 16:29 - 145 of 382

You should see me when I watch Wales stuff England :-)

ptholden - 26 Nov 2010 16:46 - 146 of 382

You wish Dil!

Closed yesterday's position mate for +46, missed the top. But couldn't resist buying back in!

For once, the over-used term, 'strap yourself in, this shares is ready for lift off' is quite apt!!!!

kimoldfield - 26 Nov 2010 16:58 - 147 of 382

Champagne and tinnies at the ready. Champers for success, tinnies if it falls into the sea!
:o)

tabasco - 26 Nov 2010 18:27 - 148 of 382

Dil dont worry you have the lucky thicko on board.and he is never wrong 10 Xmasminor chirps are OK!

Dailos - 26 Nov 2010 18:30 - 149 of 382

watch your money go up in smoke... http://www.videocorner.tv/videocorner2/live_flv/index.php?langue=en

Dil - 26 Nov 2010 18:37 - 150 of 382

Choo choo 2 minutes til it blows up :-)

Dil - 26 Nov 2010 18:39 - 151 of 382

Fly baby fly .....

ptholden - 26 Nov 2010 18:44 - 152 of 382

Well, the fecker's oop!

Let's hope it stays there :-)

Dailos - 26 Nov 2010 18:44 - 153 of 382

I thought it was april fools day dilly boy... as the satellite started to look like it was going down again, i had ITV news on and they were reporting of a traffic jam on the M4 of 22 mles long of people trying to get into Wales!!!

Dil - 26 Nov 2010 18:45 - 154 of 382

lol .... should have strapped that tw*t Muncaster to it pt

ptholden - 26 Nov 2010 18:46 - 155 of 382

LoL

Never thought I'd be so interested in an Ariane rocket!!

ptholden - 26 Nov 2010 19:15 - 156 of 382

Wohoo, Hylas away, hope it works.
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