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.

Kim.the recent news and the SP dont correlateI have weird adverse tendencies to smash into bets that are made to appear direend of the daythose bets make me lucky more times than not

I feel lucky here!

And jolly good luck to you Tabby!

I feel that there has been a lot of disappointment with regard to the size of the contracts the company has acquired to date. Frankly they haven't been outstanding. I know that it is still in the early stages and that more cash will flow in but it may be that some investors are having second thoughts. The upside for AVN will come mainly after the successful launch of Hylas 2, also on the positive side, there cannot be too much in the way of maintenance costs for the actual satellites, nobody is going to go up there to give them a polish are they?! Just my opinion, which could well be utter crap. :o)

Kim.they have a very lucrative B2B they are selling a service product that could make a vast difference to already affluent areas they call all the shots.I like that!
It was only December when we had the Preliminary Report. Daniel Stewart raised their target to 2519p from 1111p the very next daythey must have been impressed? The SP was 7 and risingsince that date we have had an additional 13 contract wins.We expect to sell out HYLAS 1 capacity within the planned three years The Chairman statedwe have 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."

KimI dont complicate things.that will do for me!


Date:1 December 2010

Avanti Communications Group plc
Preliminary Report for the 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 5.82 million (2009: 8.04 million), falling as legacy businesses activity ceased in preparation for HYLAS 1 launch
Loss after tax 1.93 million, better than expectations (2009: profit after tax 1.05 million)
Closing cash 34.18 million (2009: 24.62 million)
Post balance sheet fund raising produced gross equity proceeds of 70m

Yes Tabby, the future is rosy, expect a few ups and downs until 2012 then it's lift off. Well, for Hylas 2 anyway!

Possibly a good price to buy at the moment.

KimAs you know the market never does what is expectedotherwise we would all get what we wantedequalling total demand and no supply.we call foul when the MMs deceivecall for a stewards inquirybut end of the day.they have to balance the booksbastards!

:o)

Needs to announce its transfering to main market that'll sort things.

It certainly should help Dil!

Trend line support around this level, if it doesn't hold 540/550 seems the next support level.

More good publicity.

HYLAS 1 is a hybrid Ka-band/Ku-band satellite, offering interactive broadband services to 23 countries across Europe. Built by British-based company Avanti

http://www.eweekeurope.co.uk/interview/satellite-broadband-bridging-the-digital-divide-20593


Peter.what a difference a day makes Interim Results for the six month period ended 31 December 2010 this Mondayimothe only way is up lol

Like I said..........trend line support.

Peter.thats why I dont take much notice of chartsfall or rise last Friday and you post would have read correct.it might rain today? If not.. it will stay dry

Tabasco, as an ex bookmaker you should recognise the probabilities of trading or investing, charts and even the simplest of trendlines can tip the probability in your favour.

Incidentally I am not a tipster and generally offer positives and negatives; on my own account I may take a position based on that info but not post the fact. If you want a buy or selll recommendation, follow the likes of Hyleo, although I suspect you will be potless in short order :)

What happened here.. ..?

Simon Cawkwell (aka Evil Knievel) shorting it apparently, thinks the revenue figures don't stack up.

this one stinks .... is there a way back?

Stop loss hit so out for time being but looking for a new entry point.

.... and sod all to do with EK as I've had my run ins with him in the past and he don't call everything right.

He was long mdx for one if memory serves right , ramping arse off them and relying on sheep to make himself money.

Its normally higher folksgood game.good game