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.

.... here come the muppets


:-)

Missed todays drop , chart looks crap so might get a better buying op next week with a bit of luck.


10 by xmas ... easy money :-)

DilI see your statalite is going up on the 25th Novemberwill this now be the 10 stock you have been banging on about for so long?

RNS Number : 5133U
Avanti Group Plc
18 October 2010

Date: 18 October 2010
On behalf of: Avanti Communications Group plc ("Avanti" or
"the Company")
Embargoed for release: 0700hrs

Avanti Communications Group plc
Launch date set for HYLAS 1
Avanti Communications (AIM: AVN), the broadband is delighted to announce that the HYLAS 1 satellite has safely arrived at its launch site at the European Spaceport in Kourou, French Guiana. On site preparations for launch have now commenced and a date for launch upon an Ariane 5 launch vehicle has now been set for 25 November 2010.
--ENDS--

As long as all goes as planned I can't see why not tabby.

A move to the main list should follow with entry into the ftse250 likely.

Im tempted?

Dilthere still must be a risk elementsatellites are launched on top of rockets and carried into space or so I thought?is that the case with this launchsounds a risky businesshow would the SP respond to a successful launch?not a great deal is my view but it becomes a far safer playwait and see would be the obvious betan SP jump to 7-50 on completed launch would prove me wrongimo
One other point Dilthe company have statedfirst satellite, called HYLAS 1, will launch in November 2010 and will be the first superfast broadband satellite launched in Europe.
Then they go on to saymarket for 2Mb satellite broadband products in the markets served by Avanti is estimated at more than 100 million householdsam I missing something?

Think your summary of the launch risk is fair and as there will be a few weeks testing after launch and that may well be the safest time to take the plunge but I guess you won't be getting them for six quid.

Think the "superfast" stuff is aimed at commercial users such as the military , etc.

Dil Not a good idea to promise the speed of a Porschethen deliver a Punto?but I am interested in this stock!

I told you about these on the MDX thread over two years ago tabby and ABC in the same post. Think there was a third but can't remember what that was.

@ 4.......

ABC were around that , AVN were about 280p and I think the third one I had might have been JRVS but lost about 40% on them from memory.

Also courtesy of my good fried C.Currently hold MKS , VOD , BT.A and LGEN (dog portfolio based on expected divi yield). Also two investment trusts EUK and SDU.
We dont miss much!

They were in my SIPP tabby , big rearrangement July 09 and have had most of it in Aberdeen Emerging Markets , Ballie Gifford Emerging Markets , Threadneadle Latin America and added First State Indian Subcontinent in October 09. Performance to date : +71.5% , +62.4% , +68.3% and +43.3%.

Have recently added ETFS Commodity Securities Leveraged Platinum which is up 10.4%.

Had some UK smaller companies investment trusts in July 09 which I sold earliear this year for about 25-30% gain , sold too early with hindsight.

Been a good couple of years to be honest tabby.

Christ Dilyour complete betting strategy?Ill tell you where I am..Ive had my momentslol

Feel a bit guilty watching it go up and up on the back of someone elses picks in an investment trust ... but I'll live with it.

Probably only made about 10-15% overall on the shares that I've picked in the same period.

RNS Number : 5886U

Avanti Communications Group Plc

19 October 2010


Date: 19 October 2010
On behalf of: Avanti Communications Group plc ("Avanti" or
"the Company")
Embargoes for release 7.00a.m.



Avanti Communications Group plc

Contract Win

Avanti Communications (AIM: AVN), the broadband satellite operator, is pleased to announce that it has signed contracts with two new partners for the sale of broadband services to be delivered from HYLAS 1, Europe's first Ka Band satellite. InTouch Systems and DSL Telecom are established UK IT and Communications companies serving regional markets in which rural connectivity for homes and businesses plays an increasingly important part.

Commenting, David Williams, Avanti Chief Executive, said: "I am pleased see that, following the confirmation of our November 25th launch date, sales momentum is increasing."

--ENDS--

Can I take it you've joined me then tabby ?

Might have?

Nice and cosy here ... just you and me.

XEL looking good tabby if your interested.