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.

TTT for Dil. ;o)

Oh, and a chart!

Oops. Nearly forgot the latest RNS!

Date:
6 September 2010
On behalf of:
Avanti Communications Group plc ("Avanti" or "the Company")
For immediate release


Avanti Communications Group plc
Schedule Confirmation

On 12 July 2010, Avanti (AIM: AVN), the broadband satellite operator, announced that the Board's estimate was that there was a risk of schedule delay of up to six weeks from the proposed end of September launch of the HYLAS 1 satellite.

The Company now confirms that it has agreed the launch slot on an Ariane 5 launch vehicle which opens on 15 November 2010 with launch expected on that day or within a few days thereafter.

The HYLAS 1 spacecraft has successfully completed its assembly, integration and test campaign and is therefore fully complete and ready for launch.

---ENDS---

A bit more info about Avanti:-

Avanti sells satellite broadband services to telecoms companies which use them to supply residential, enterprise and institutional users.

Avanti's first satellite, called HYLAS 1, will launch in November 2010 and will be the first superfast broadband satellite launched in Europe.

Avanti's second satellite, called HYLAS 2, is fully funded and will launch in Q2 2012. It will extend Avanti's coverage to Africa and the Middle East.

The market for 2Mb satellite broadband products in the markets served by Avanti is estimated at more than 100 million households.


DYOR, there are not a huge number of shares available.

Business is building up.

Date:
8 September 2010
On behalf of:
Avanti Communications Group plc ("Avanti" or "the Company")
For immediate release


Avanti and Astrium Launch Military and Government Ka-Band Test-Bed
Test facility to support experimentation and development of end to end Ka-Band communications capabilities
Avanti to provide bandwith on HYLAS 1

Avanti Communications (AIM: AVN), the broadband satellite company is pleased to announce that it has entered in to an agreement with Astrium Services to establish a new military and government advanced Ka-band test-bed.

The technology test-bed, which will be based in Stevenage, UK, will comprise of a dedicated secure laboratory facility which will enable government and military customers to test and refine future military Ka-band system requirements. The test bed will utilise proven system and terminal capabilities supplied by Astrium Secure Satcom Systems and satellite bandwidth on Avanti's HYLAS 1 satellite which will be launched in November 2010.

Dil won't use this thread - too embarrassed at not starting one in the 1st place :-)

Lol!

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 :-)