Hi Ripley, no US connection I'm afraid and I don't have much technology experience. In fact I'm still amazed that the AutoPay at Cockfosters worked last Saturday and I'd worked it correctly. My interest in this stock has grown mainly from a small holding of some years back. Two things intrigued me. One why it wouldn't die and secondly why was Paul Walsh still involved. I have built up my holding because I saw it as a shitorbust punt and below 10p was a chance to buy when those in the know were prevented from building a substantial holding. I'm not saying they would but currently there are not a lot of free shares and even after the conversion they will still be held by just a few. I was posting occasionally on LSE but prefer the layout of iii. This is a cut and paste of mine from there.
"As we draw closer to the launch the price remains stubbornly around 9p. There is no cheer leading on the bb's or a share tipper choosing Avanti as the stock for 2018. Influential share holdings are held by a few large holders and 53.10 per cent are classified as not being in public hands. The spread makes it untradeable for those who like to play and I wonder if this is intentional. The bond holders have been forced down this route and have little sympathy for existing shareholders. The only benefit to the small PI is that it means our interests are aligned with theirs. I don't see these people intentionally wanting to pour money down the drain and they have chosen to launch the satellite. They cannot trade themselves because being members of the board they have 'insider' advantage. It is not about us but what is inside the minds and interests of the directors and the large shareholders. At the current price to get a decent amount of shares would be near impossible and would drive the price sky high. For what purpose? You could not get a meaningful percentage. The Avanti web page says there are 162 mio shares and deducting the locked in shares you get 75 mio shares. Lets say 50 mio of them would sell now. With the 2 bio additional shares coming our way a new investor would end up with 2.3 per cent. Certainly not worth the effort. We have been collateral for some time but it is now beginning to get very interesting."
No guarantees but a very interesting punt. A bit like building a hotel. You can't let the rooms until it's built. US investors seem more prepared for this type of investment and are more patient than us. Certainly in the PI sphere.
Well practically anybody whose held these has a loss so you could be right. OK, 9 good reason to hold.
as for capital gains:
'Verizon will acquire Straight Path for $184 a share in an all-stock transaction, reflecting an enterprise value of approximately $3.1 billion, the companies said.
Straight Path and Verizon's boards have both approved the deal.
Straight Path was worth around $400 million two months ago and had just nine employees as of October.
The company's large trove of 28 GHz and 39 GHz millimeter wave spectrum used in mobile communications would give a new owner an advantage in 5G development.'
I've held this stock for some time and attended AGM's. It's probably easier to just post some of my own reasons for continuing to hold and topping up at bargain basement prices.
1. Africa promises growth hence the presence of Facebook & Google with drones and balloons.
2. The geopolitics of mass immigration to Europe from Africa & the charity failure increases the focusing of building companies and industries on the continent.
3. The biggest hurdle is about to be overcome: launch H4 around end of month. Satellite on site and launch subject to weather.
4. Top quality Chairman.
5. Replaced interim CEO with this man earlier this month https://www.youtube.com/watch?v=qqAwYpiF0yI
6. Willingness of bond holders to push project forward.
7. Share price irrelevant with spread and small (for AIM) amount of shares in public hands.
8. Ka Band value: last May Verizon paid up for Straight Path and its valuable trove of 28 GHz and 39GHz spectrum.
9. Recent purchase (b/b - transfer to ISA) by Technical Director. With what has been happening it has been impossible for Directors to BUY stock. Moving a holding to a more tax effective place is allowed. maybe small - but £20k is £20k and he spent £1600 to do it (see 7.)
10. Following a successful launch a torrent of contracts to be announced that are held back by the clause 'subject to a successful launch'.
"Avanti Communications Group (LSE:AVN)This share is a bit of a puzzle. Once trading at nearly eight quid,Â LSE:AVN:Avanti is now messing around at the 10p level and frankly, by all big picture logic, the price should be in negative figures. When ..."
" Avanti Communications Group (LSE:AVN) This share is a bit of a puzzle. Once trading at nearly 8 quid, it's now messing around at the 10p level and frankly, by all big picture logic, the price should be in negative figures. When the last ..."
Watch it fly like a big, beautiful, shiny rocket!
Up over 60% in just over a month, going up almost as fast as it came down.
My loss now under 99% !?*%$
I knew it was worth hanging onto just for entertainment value (as that is all the value left).
* A marked fall in revenue of 32%
* Material and significant losses at an operating level
* Material further losses from asset impairments
* significant debt, not all of which is going to be swapped for equity
* material cash burn supported only by the issue of further debt
* accounts qualified with the longest "going concern" statement in history
The problem is with this company it cannot sell its services, new cash will just pay the directors wages for a year or 2 before they bail out of the sinking ship (maybe a bonus as well for organising the new finance deal!!!)
They have blogged this morning "dilution to oblivion"
Dropped by more then 50% since 10 January .
But 10% up today.
They must trade these AIM stocks ?
If enough PI on AIM read it, could move small company price.
Restructuring is game changing. Mood at AGM today was very upbeat.
$557m debt written off in exchange for shares worth approx £140m (2bn at 7p)
Cash interest reduced by $92m per annum.
Shareholders get diluted but company is now secure for the foreseeable future.
I gave up on this lot some time ago, shame really as I think potential for anywhere broadband comms across EMEA should be huge if properly executed. Sales performance has been truly awful as half empty satellites confirm.
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