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 skinny.

I reckon we need about 14.5p a day to hit a tenner by xmas.

Results for year ended 30/06/10 to be announced Wednesday followed by an analyst's briefing at 12.


Upgrades and fill yer boots recomendations will follow shortly thereafter.

Article from siliconrepublic.com dated 26/11/10 .... I like the last bit :-)



Rocket mans broadband firm on FTSE 100 trajectory

A businessman whose previous venture capital company delivered a 768pc return for investors could turn out to be the unlikely saviour of broadband in the Northern Hemisphere as his stg120m HYLAS 1 satellite rockets into space tonight.

David Williams Avanti Communications aims to deliver 10Mbps broadband to rural residents and businesses in Ireland and across Europe, the Middle East and Africa for as little as 25 per month.

Williams, whose previous venture capital company Active Media Capital wound down in 2006, delivering investors a 768pc return on investment, has listed Avanti on the London Stock Exchange and told Siliconrepublic that he believes it will be successful enough to enable the firm to enter the FTSE100.

The satellite HYLAS 1 is the first of its kind to be launched outside the US and will lift off on an Ariane 5 rocket from French Guiana at 18.39 GMT tonight.

The most powerful of Ariane 5s beams will be trained on Ireland. The overall cost of the satellite is stg120 million and has been funded by investors as well as the European Space Agency and the UK Space Agency.

We already have satellites in the sky that are designed for TV and anybody else who provides satellite broadband either charges too much or it's heavily subsidised.

Weve been building two broadband satellites, the first one launches Friday and will be the first of its kind to be launched outside the US.

Williams explained that his satellite will use KA-band technology, which can provide higher speeds than TV satellites which use KU-band technology.

KA-band brings all the benefits of speed and technology. You can get speeds of up to 200Mbps. Weve chosen to buy in bulk modems that typically provide home owners or office users with 10Mbps at a rational price point. We will offer modems with higher speeds to government and enterprise users.

I asked Williams how soon a commercial iteration of the service will take to be put in place. Testing will happen fairly quickly and well spend time experimenting with the satellite, deciding on power consumption, moving frequency around, deciding how much revenue is possible and pushing it to see if theres a higher performance possible from the satellite than it's designed to deliver.

Liftoff
Williams said that Avanti has already signed up a number of service providers in Ireland to deliver the service, which will cost around 25 a month. Across Europe, Avanti has signed partnerships with 60 telecoms companies.

Tonight, when the HYLAS 1 satellite lifts off on the Ariane 5 rocket, Williams will be present in French Guiana, at the European space port where he will have two duties to give a speech and be pushed into a swimming pool.

Williams explained that Avanti was formed 10 years by himself and his business partner, astrophysicist David Bestwick.

Avanti, he said, is listed on the London Stock Exchange with a stg750m capitalisation. We have two satellites fully financed and the second will be launched in early 2012 to enable us to provide more capacity into the Middle East and Africa.

Our intention is to finance and build more satellites to secure early mover advantage. If we get four satellites launched theres a reasonable chance of Avanti becoming a FTSE 100 company.

Williams is confident he can do it, and he certainly has the pedigree to prove it. My earliest investments have made 15 times their money and the latest investment delivered a 50pc return in less than a year.

He concluded by saying that at present brokers are assuming Avanti will deliver 2 earnings per share. But stg40 could be achievable, he said.

UK analyst:

"Small Caps, AIM and PLUS

Avanti Communications* (AVN) shares rocketed 72p to 725p on news the broadband satellite operator's Hylas 1 satellite was successfully launched into orbit from the Kourou Space Centre on an Ariane 5 launcher last Friday. Commenting on this, chief executive David Williams said: "HYLAS 1 is a uniquely flexible satellite and we are now delighted to be able to offer broadband to communities, businesses and governments around Europe." As a result of the "removal of launch risk", Daniel Stewart reiterated its "buy" stance for the firm with a 1,111p target price.

1111p eh! By Christmas? :o)

Be upgraded after Wednesday I reckon.

Dil, please try ramping a little bit harder, jeez, you need to post 50 times a day, copy and paste from every BB and when a new page appears, do it all over again. FFS, have you learnt nowt from your many years loafing around ADVFN??

Added to my SB position today, didn't quite get the bottom of the retrace, but close enough for government work.

Banked profits from Friday to fall back on if Dil doesn't pull his finger out! But I'm hoping to build a nice little position in AVN (which I must admit wasn't the plan last week!).

Contract Win

And many more to followare we selling ourselves a little short to BT?

Sorry pt , I'll try harder :-)

Given the way that everything has been managed so well so far I wouldn't be at all suprised if details of a move to the main market were released tomorrow along with the results.

Mentioned in Mail by serial MDX ramper Geoff Foster.

5 by christmas

Nah ... mdx went bust jeff.

Preliminary Results



TIDMAVN

RNS Number : 1235X
Avanti Communications Group Plc
01 December 2010

?
+--------------------+-------------------------------------------------+
| Date: | 1 December 2010 |
+--------------------+-------------------------------------------------+
| On behalf of: | Avanti Communications Group plc ("Avanti" or |
| | "the Company") |
+--------------------+-------------------------------------------------+
| Embargoed for | 0700hrs |
| release: | |
+--------------------+-------------------------------------------------+

Avanti Communications Group plc
Preliminary Report for the Year ended 30 June 2010

Avanti Communications Group Plc (AIM: AVN), the broadband satellite operator,
announces its audited Preliminary Results for the full year ended 30 June 2010.

Key points
� Successful launch of HYLAS 1
� High cost debt repaid in July 2010, balance sheet now very strong
� HYLAS 2 fully financed and on schedule for launch in Spring 2012
� Excellent progress with sales on both satellites

Financial highlights
� Revenue of GBP5.82 million (2009: GBP8.04 million), falling as legacy
businesses activity ceased in preparation for HYLAS 1 launch
� Loss after tax GBP1.93 million, better than expectations (2009: profit
after tax GBP1.05 million)
� Closing cash GBP34.18 million (2009: GBP24.62 million)
� Post balance sheet fund raising produced gross equity proceeds of GBP70m


Commenting on the results, John Brackenbury, CBE, Chairman said:

"As the Chairman of a company in possession of an in orbit satellite I have
great pleasure in presenting Avanti Communications Group plc's results for the
year ended 30 June 2010. The achievement of a start up company in launching a
satellite is very rare. Avanti now has one satellite in orbit and a second
launching in a little over a year, a very strong balance sheet with no debt
service payments or cash flow covenants falling due until December 2012, huge
untapped markets and a quite thrilling opportunity to create a company of
genuine scale."

is there anything "extra" to push sp forward ? ...... pretty questionable i would have thought

An ongoing flow, or even flood :o) of contracts I would think cynic!

The forecast for eps of around 135p(?) by 2014 cynic ?

but that was surely well telegraphed before

a little north today perhaps

Until launch it was just a dream cynic whereas now it's becomig a reality. Takes a long time for a story to sink in but it will.

Short term a move from AIM to the main market and entry into FTSE 250 will give it a further boost. I'm sure analysts will be enquiring about the timing of this later today.