RE: Why?7 Dec 2017 21:19
1. Investment is in satellites (manufacturing, launching and the ground stations to use and resell services) each satellite costs an average £280m, the ground station to build with diverse antennas, redundant hubs and assured diverse connectivity is another good chunk all in all the investment is sound at £1.2B... ROI whilst arguable the hub technology has a life of 5 -7 years the remaining components can be used depreciate over 15-20 years....
2. I believe that there is lots of capacity in the H1 and H2 and H4 space craft, whilst some may argue H1 and H2 are mini satellites - H4 is arguable in the big league. With hungry customers like Bentley Walker, EE/ BT to mention a few they should be easily filling H1 and H2 in the coming years, Remember EE is only going live around now for acutal usage with blue lights in UK...
3. Debt situation should be taken lightly they have a high cost of interest on the debt, this is likely to down grade as there credit rating improves and is already showing signs of this...
4. No comment
5. Avanti are carving there own name, specifically I. Cellular back haul over satellite for 4G I think they might be the biggest player currently in the world, for 5G there seeking to continue being a market leader... given that in the industry they exist they are a relatively new name perhaps toe to toe with the like Yahsats the big players like Inmarsat, Eutelsat, Viasat, Intelsat and Hughes have all recently lost market ground to Avanti...
7. Undoubtedly the successful launch of H4 in April 18 and seeing the finicials of presigned contracts starting to generate revenue.
8. Over Africa probably Yahsat and Eutelsat both have their own demons... over UK I’d say AVN is the leader, over Europe hard to say... undoubtedly the rest of the global coverage is difficult...
9. In this forum - your missing negative energy and extreme pessimism for their expected failure :-)
Even if the dooms day scenerio, with H4 in the sky and a sell up: buy out I can’t expect the company would be less than £1.80 per share...
But personally I’m a glass half full guy hoping for 60p by February and £1+ by April - I don’t think those figures are unrealistic I just think the punters are else where/ lost confidence in this share...
Anyway all those who wish to poo poo this your welcome :-) I’m fingers in ears and eyes closed any how :-) ciao