I would just like to point out that guys like Lucien Miers and his mates Tom Winnifrith and Evil Knievil are not infallible. Winnifrith, having championed Telecom Plus for several years recommended selling it at around £7.00. , the shares are now around £18.00l
Winnifrith championed Avanti for ages but recommended dumping it, as have LM and E K. I don't buy their arguments as having spoken several times with the CEO, I prefer to believe that sales will grow, owing to the superior technologies that Avanti have developed and their concentration on quality and flexibility which are attracting prestigious clients. Success will take time, but with Paul Walsh ex Diageo boss as Chairman designate, I remain confident in the future of Avanti, and look forward to the period between 2016 and beyond.
As for Miers, Winnifrith and Knievel, they are, amongst other endeavours, journalists who seem to thrive on being controversial , and I choose not to believe what I read of their weasel words!
Avanti Communications: The 2nd of FIVE Lucian Miers shares to sell ahead of disaster in 2014
The market capitalisation is £284 million. Red flags abound here: serial profits alerts, missed sales targets, strange accounting policies, an all-powerful and arrogant CEO who like most of his board dumped vast numbers of shares at much higher prices (but who argues that less significant share purchases since makes up for that).
The real problem is that Avanti is not generating cash at a PLC level as its supporters had hoped. Instead it labours under more and more debt which is increasingly expensive to secure. Last time it had to refinance it was at 10% and at this rate it will soon be cheaper for it to borrow using the CEO’s credit card.
So Avanti now labours not only to support PLC cashburn but also an increasingly expensive interest bill.
Unless it can start to hit sales targets (which would be a novelty) Lucian beli eves that bond holders and shareholders will become restless and there is a very real possibility of even more financing being needed – perhaps debt at credit card rates or would that be an emergency call on shareholders. Either would be disastrous for the share price.
Avanti is Lucian Miers second bear tip (stock to sell) of the year 2014.
Like two old women talking over a garden fence. Still I do know Florida and France very well as they are two of my favourite and most travelled parts of the world so found some of your posts interesting. South West Florida is perfect at this time of year where I have been to Sanibel a few times. In fact just got back from a short trip to central Florida and now planning on a trip over to France where I just love the food and wine. Just checked my PF and the SP for AVN had jumped to 265p but now dropped back to current level. Hopefully 265p is where we will start 2014. Best wishes for the New Year to all SS.
Hi Rob . Yes Nimes is down that way. Roman city with the best preserved amphitheatre in the world,I really enjoyed the city personally. Went over the Milau Viaduct to get there ,if you have not seen it Google it ,stunning . I don't bother with the French markets as I have enough trouble trying to get my head around the UK ones ! CAP looks interesting after having a quick peek ,may have a dabble there tomorrow. Funny old day here today ,well up and then down and then a blue finish so fine really. I thought of a top up but have just shy of £60k in here so eggs and baskets and all that ! Take care.
I am sure there are others around here named Rob. No offense.
I meant to look at my atlas yesterday. Is Nimes near Toulouse? I might be confused. I think Toulouse and Montpellier are both nice places.
As for <<les bourses,>> there is a little bit of favorable news at AAU today. This is the gold exploration play with property in Turkey. I don't know whether gold exploration shares such as AAU or SHG attract your interest. Not preaching, just mentioning.
Do you follow the market in France? I realize that many prefer to stay in their home markets. Via the internet, I have made the acquaintance of a very bright, bilingual gentleman in Montreal who seldom gets involved in companies outside Canada. His system works for him, so I am not at all inclined to criticize it. He has helped me to invest in some lively non-resource Canadian shares. His theory, that the values are away from resources because in Canada resource shares get all the attention, makes abundant sense to me.
This morning, I bought some CAP shares on AIM. CAP feels like an improving green-energy story, and the chart looks good to me. I am not an authority on Roman Abramovitch, but he made an investment in CAP during 2013 above 9p, and the shares are available these days at a little lower price. Anyway, I do not see a lot of downside risk.
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