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 ... just seen it .

We going into orbit :-)

Tic toc , tic toc , tic toc , tic toc ....

Ramp bloody ramp! Seriously - good call Dil :-)

Cheers skinny , think there could be some selling soon .... around the 10 quid mark :-)

The sky is the limit. Literally. :o)

Dailos will be along soon to ramp them no doubt.

Guess he just hasn't found this thread yet.

The more the merrier, though the only ramp needed is the one for the Ariane 5 launch vehicle!

No one mention Buzz light year !

Is he in too ?

:-)

10.50 target his year...fillyergardensheds.

imo nag dyor!

:-)

Morning all!

I hope Dil doesn't take credit for this stock, it was Dailos who first brought
it to everyones attention.
He's also a fan of BZM and MML at the moment.

dominic simpson esq (aka Gausie)

:-)

.... 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.