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.

LoL

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

Wohoo, Hylas away, hope it works.

Wonder how many contacts have been signed with the proviso of a successful launch ?

May get a few rns's next week.

CEO Williams suggesting a share price of 25 quid and beyond .

Oh yesssss please.

Tenner Monday tabby ... yippeee

Dil, can you imagine what L2 would have looked like if that launch was during market hours??

Dil, by the way, many congratulations, big cojones to load up the way you did, even if you did have a load at a much lower entry. Respect :-)

lol got a bit random last 10 minutes today pt but would have been really funny if lift off was at 3pm.

Off to celebrate now , successful launch and us beating the all blacks tomorrow :-)

Bloody hell! Got stuck in the snow and missed the launch! Glad it went up ok though! Yes Dil, good win for Wales tomorrow and I will be one happy bunny!! :o)

Nice to see that this intro video's opener is Wales, with one of my favourite Brecon pubs, the Felin Fach Griffin, featured (drink the beer at your peril!!!)

http://www.avantiplc.com/satellite-fleet/hylas-1/official-launch-video

That Williams is a bigger ramper than tabby !

Can't see it being more than 24.99 by xmas.

Night all sweet dreams.

xxx

... 667p , cheeky barsteward :-)

26 November 2010 Last updated at 20:29
Hylas-1 net-dedicated satellite launches
By Jonathan Amos

Science correspondent, BBC News

Hylas climbed to orbit aboard an Ariane 5, the 40th mission in the rocket's career
Ariane completes flawless launch
The first satellite dedicated to delivering broadband services to Europe has launched on an Ariane 5 rocket.

The Hylas spacecraft is designed to fill so-called "notspots" - remote locations such as rural villages where it is currently not possible to get a fast internet connection.

Lift-off from the Kourou spaceport in French Guiana occurred at 1539 local time (1839 GMT).

The satellite was successfully placed in orbit 34 minutes later.

A signal from Hylas was picked up almost immediately at an antenna sited in India.

Controllers will now take a number of weeks to position the spacecraft properly in the sky some 36,000km above the equator, and to check out onboard systems.

Hylas (Highly Adaptable Satellite) is a commercial venture operated by start-up Avanti Communications of London, but the spacecraft itself incorporates technology developed with public funding through the European Space Agency (Esa).

"It is a fairly small spacecraft but rather capable," Esa's Hylas project manager Andrea Cotellessa told BBC News.

"The payload has flexibility to reallocate bandwidth and power in each of the eight spot beams that cover key market areas selected by Avanti.

"Normally, satellites have this frequency plan fixed at the design stage and it can't be changed in orbit.

"On Hylas, this can be done at any moment in time from the control centre. This agility is important because it will allow Avanti to keep up with market evolution."

Hylas was prepared at the Portsmouth, UK, factory of EADS Astrium, Europe's largest space company, and in Bangalore by Antrix, a commercial arm of the Indian space agency (Isro).

The 2.6-tonne spacecraft will operate in the Ka radio band and deliver broadband services to some 350,000 subscribers.

indeed - missed this one entirely as had not even heard of the company!

My fault cynic , been bumping onabout them for a couple of years on mdx and swg threads but never got round to starting one for avn.

why on earth your fault?

Yep blame Dil :-)

Richard, you wouldn't have bought any, AVN too much of a quality company for your tastes! Bit of a cut above the usual crap you invest in :-))

Dil's fault anyway.

cynic , I hate pt he an english twat who told me to buy MDX ,and skinny no better !



Roll on Feb 4th ... dickheads :-)

Lol

You been out wiv yer woolley friends on the pop mate?