Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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I told you satellites arent real they're just science fiction everything is ground based. They've taken your money and are running. Massive debt built up on blind faith gla
...resolution passed as expected. 17th the last day of trading. Get out whilst you can folks!!
GCCRa has been kidnapped by the fat lady and she is currently teaching him a new song, The sound of silence !
Ok, let's try that again without the typos ;-)
Yes this Board certainly had it's cast of characters. GCC, posting when he managed to evade the nurses at the home for the stupidly insane; Brad and his increasingly bizarre and random musings; Tyche for his strange need to argue points of no relevance to the share price; General George, who confidently, and correctly , predicted the first (of a few) D4E swaps; The deeply unpleasant Whatsocurring who seemed to have an unhealthy focus on what he called 'wrist merchants'. And of course, the harbinger of a lady of enourmous giirth who sings, South Street. And finally HITs, your good self, easily the best informed and most sensible poster on the Board who still attracted a dgeree of abuse, but weathred it with excellent grace. What a laugh it's been - well, for those of us who sold a few years back anyway...;-))
Yes this Board certainly had it's cast of characters. GCC, posting when he managed to evade the nurses at the home for the stupidly insane; Brad and his incrasingly bizarre and random musings; Tyche for his strage need to argue points of no relevance to the shareprice; General George, who confidently, and coprrectly , predicted the first (of a few) D4E swaps; The deeply unpleasant Whatsocurring who seemed to hae v anhealthy focus on what hecaleed 'wris merchants'. And of course, the harbinger of a lady of enourmous giirth who sings, South Street. And finally HITs, your good self, easily the best informed and most sensible poster on the Board who still attracted a dgeree of abuse, but weathred it with excellent grace. What a laugh it's been - well, for those of us who sold a few years back anyway...;-))
It is without a doubt progress... except sadly and not unexpectedly downwards. In fact, in the exact opposite direction that blinkered zealots like GCCRa kept assuring everyone that AVN would go in.
Is it just me or has GCCRa been a tad noticeable by his absence over the last couple of weeks? Surely he could pop in and promise everyone "Jam tomorrow! Massive multibag buy opportunity!" one last time just for old time's sakes?
Let's face it, long-suffering AVN PIs could do with a laugh, even if a very bitter one...
0.32p now continued progress?
For all those who will hold shares in a De-listed company , what are the chances of AVN re-listing under another name in few years time ? Also if the company doesn't register with specialist Broker such asset match then there is no means for PI's to sell there holdings ? Our best hope is for a Take over in the future, unless we are diluted to oblivion !
The fact that half the debt is converted to equity is irrelevant Dan. How an asset is funded does not affect the degree and speed to which you depreciate it. Book value per share (which is the key BV metric for shareholders) does not change under a D4E as whilst overall BV increases, so does the number of shares leaving BV unchanged.
Matt
Depreciation does not matter as a non-cash item, especially because half of the debt that funded the capex has been converted to equity. I do not think the BV will get further slashed on an upward trajectory of performance.
Have a great day :0)
Dan, you cannot say on one hand that Depreciation doesn't matter, and then on the next post argue that the stock looks cheap relative to it's net tangible value ion the balance sheet. The assets are , partially at least, being aggressively depreciated because they simply are not worth what they are valued at in the BS. Once that process has largely finished, look at what your BV is then!!
Typo correction... "Tell holders when you'll achieve even a neutral Earnings After Interest position..."
PS.
AVN's recent insistence on forecasting a "positive EBITDA" as not being too far away absolutely does NOT impress me - in fact I consider this as weasel words. For a company in AVN's dire situation, achieving a "positive EBITDA" is literally meaningless, because of the massive and cash-draining significance of that capital I.
Tell holders when you'll achieve even a neutral EBI... that'd be a worthwhile prediction to make. Anything else is just smoke and mirrors.
Dawn, a couple of things....
"So, do we believe that the share price should really be less than 10% of the net asset value"
The obvious answer to that is yes, that's exactly what the market currently believes. It demonstrably values AVN at just £11m. You of course may differ.
"The recent progress is real." IMO it's much more accurate to say that the recent change in strategy is real - but to date and as clearly evidenced by yesterday's results, it's not delivered any tangible results. Yesterday's figures are as poor as usual.
"...if they can perform like they say they will."
Heh. If all AIM companies performed like their BoDs say they will and all always delivered on the jam tomorrow that is invariably promised as being just around the corner, we'd all be millionaires. Plus, if AVN goes off-market as it's certain to, how will PIs ever really be able to find out how it's doing? And how easy will it be for PIs to realise any concrete value out of their share holdings?
The market Cap is £11m at yesterday's closing price. The balance sheet shows that net assets are £150m at 30 June 2019. There are no significant intangible assets, which means the balance sheet assets are 'real'. So, do we believe that the share price should really be less than 10% of the net asset value. All those birds in the sky will be able to deliver at some point otherwise they would have gone pop already!
The recent progress is real. It is best to forget history and what happened in the past because that can't change, but the future can be different. They can rise like a Phoenix from the ashes if they can perform like they have been saying that they will.
Dan it is indeed true that D&A don't affect cash at all.
Unfortunately the same absolutely cannot be said for that big fat capital I... interest, aka finance cost.
Forget gross profit. AVN's bloody sales revenues still don't even cover interest due on borrowings (and that's ignoring both cost of sales and opex) - and that's after having halved their historic debt.
Uninvestable.
EBITDA is relevant because it is a shortcut to cash as depreciation and amortisation mean diddly squat when all the capex has already been spent. Based on D4E and the share price, a lot of the capex was effectively free!
We have to accept the difficulties they've had in the past but we should now recognise the leaps and bounds with continuing progress. Onwards and upwards, even if it is as a delisted company.
SteelyDan. thanks a lot for cutting and pasting the RNS from 9 hours ago. Once again, Its another really useful contribution........
Dan - wake up. Do you know even what the letters in EBITDA actually mean? Positive EBITDA is meaningless if the I, D, and A are consistently swamping it. Positive EBIT and fast is what will save the value of the equity in this company (whether listed or not) and that is very clearly not on the cards here.
Sharecast News) - Satellite data communications provider Avanti Communications Group reported adjusted revenues of $30.2m (£24.72m) in its first half results on Wednesday, rising from $25.6m year-on-year.
The AIM-traded firm said its EBITDA for the six months ended 30 June was in line with company budget at an adjusted loss of $4.7m, narrowing from the $17.4m loss it booked a year earlier.
Its board maintained its full-year 2019 positive EBITDA guidance, with further material growth expected in 2020.
On the operational front, the company said its backlog increased 80% to $156.4m as at 30 June, including 1.8Ghz of capacity sold to Turksat.
Post-period end, the firm also successfully launched 'HYLAS 3', and completed a new 1.5 lien credit facility.
"The steady progress in the first half of 2019 has set the foundations for the remainder of the year," said Avanti Communications chief executive officer Kyle Whitehill.
"We expect to see a material contribution from government bandwidth opportunities in the second half of 2019."
Just one simple question.... after today's utterly unsurprising half year figures, how on God's green earth can this be considered "progress"?
Revenues... $30.2m
Costs... $36.9m
EBITDA... $6.7m loss.
Not great and pretty much same old, same old. But then we have the two ongoing big nasties, namely Depreciation & Amortisation and then Finance Costs.
D&A... - $27.9m
Finance Costs... - $34.0m
Giving us the usual stellar and eye-watering result of a $68.1 million loss before taxation.
This company is uninvestable. No wonder the BoD want to stop having to air their dirty laundry in public and are desperate to take AVN private and off-market. Let's face it, they're hardly going to be able to raise any meaningful funding through the issuance of yet more near-on worthless shares.
Progress? Don't make me laugh.
So Dan, I'm a little puzzled as to this mysterious paddle which may or may not be there we get into the 'de-listed' boat which is clearly now floating up sh*t creek. On Friday last week you told KPatel that the paddle was certainly going to be provided and all was well. However, in your post below, you are now questioning the very existence of said water propulsion tool. This is very confusing. Will there be a paddle or not, Dan? (:-))
One big problem....
Contracts have not been pouring as expected. therefore demand is not really there from the markets?
The half year reports reaffirms everything and the consistent decline in the share price is wholly irrational. Could be an orchestrated long game by someone?
If you were not a holder, you would certainly consider a serious buy particularly at these prices. The proposed delisting just leaves you wondering whether you'll be left in the boat without a paddle!
Well, have two lots in different ISA's. I asked broker what their post de-listing arrangements are. If one intends to be a pain to AVN, I do, then since the share can not be kept in ISA (s), if the vote goes in favour (it will), they will pass in certificated form to you.
There are various requirements that AVN will need to uphold (well until they get to 90% or something like that). They will however has to maintain a shareholder register.
Since there is little value left in my case, perhaps circa £165 or so at close today, I intend to stay.
Who knows what will happen with this shower, I bet they have a plan though and it involves more value to the few shareholders left. We shall see.