Avanti Communications (AVN) is a Bulletin Board darling which spews out more than its fair share of Red flag warnings. Its obsession with its share price is understandable given that it needs to get away yet another equity fundraising within 12 months. And hence I draw your attention to a release issued on Friday.
I’ve just arranged contracts on that luxury yacht I like, a bit like Bill Gates’ one but bigger. It will be delivered in 2017 and launched from Wigan Pier. Okay that is not true but I mention it apropos of the latest hogwash announcement from prize bombast and Uber-Welsh David Williams of Avanti Communications (AVN).
Drowning in debt Avanti Communications (AVN) needs to get both another bond issue and an equity issue away in the next year to keep going. It has just issued a profits warning. Its accounts in recent years have raised almost as many red flags as Arthur Scargill and so what to do? Yes…announce another contract win.
Naturally I am delighted to see bombastic uber-Welsh Avanti Communications (AVN) boss David Williams have to eat humble pie and serve up a profits warning on Friday. But what the statement says and what it does not say is just terribly confusing. I start on June 13th when Avanti stated:
And so Avanti Communications (AVN) has served up a duff trading statement as we warned you 9 days ago in our top 10 stocks to short feature HERE. Which tech dud will be next? Globo (GBO), Quindell (QPP) - ref Himex or perhaps blinkx (BLNX)? Again! To understand how to make money from tech stocks listen to the maestros in the video below from UK Investor Show, notably Vin Murria, the Queen of tech who is on top (outspoken) form.
Avanti Communications (AVN) is now officially my Victor Meldrew stock: “I just do not believe it!” Last week it served up a “contract win” announcement that was utterly incredible. Now for this, drowning in debt, needs to raise equity Company we turn to the mystery of the full year trading statement.
Another day and another “contract win” announced by Avanti Communications (AVN) – natch the value is undisclosed. Friday’s Victor Meldrew “contract win” was – as I explained HERE – very peculiar indeed. And the directors are all making small share purchases. Its ramp ramp ramp time because Avanti desperately needs to do a placing.
When a company issues an RNS which is frankly incredible – that is to say unbelievable on the known facts – that should be a massive Red Flag moment. If that company has a long record of missing targets and burning cash and is also drowning in debt then it is a stinking sell. And that brings me to Avanti Communications (AVN) up at 253p after a contract win announced today. Hmmmmm.
There is little doubt that the two most bombastic men in the City are Avanti Communications (AVN) CEO David Williams and bear raider Evil Knievil. The battle continues as we can reveal exclusively.
Bear raider Matt Earl, the “dark destroyer”, has added to his Avanti short this morning. He reckons that debt today is materially higher than that stated as at 31st March and that a rescue refinancing is “a strong possibility” this year. Earl says that “Gravity may be about to kick in.”
The initial market reaction to Avanti’s (LSE:AVN) interims to Dec 2013, released last week, was to mark the shares higher. This was no doubt a knee jerk reaction to a trumpeted 81% increase in sales and the bullish sounding flannel which preceded the numbers themselves.
Avanti Communications (AVN), the satellite group, probably has the distinction of being a company whose fundamental profile is almost as unfathomable as is its technical. I say, despite last year’s “predictable” bull flag breakdown, which heralded a halving of the share price.
Matt Earl, the bear raider known as The Dark Destroyer remains short of Avanti Communications (AVN) and takes hear from this morning’s interims. He warns that “the chances of Avanti achieving its FY 2014 consensus forecasts are slim to none.”
Even fans of the fundamentals of Avanti Communications (AVN) would agree that their company is an enigmatic one to say the least. What is interesting at the moment is the way that the charting position on the daily timeframe reflects such uncertainties in the way that we are almost equally divided between regarding the technical glass here as either half empty or half full.
The share tips of the year for 2014 from HotStockRockets is delayed until tomorrow – instead, the Bard of the Boleyn, infamous short seller Lucian Miers has returned from Scotland and has revealed exclusively to his Nifty Fifty colleague Tom Winnifrith his FIVE tips of the year to short, to sell as he predicts disaster ahead. Number 2 is Avanti Communications (AVN) at 253p – a disaster waiting to happen.
Shares in Avanti Communications (AVN) are volatile and unpredictable even at the best of times. But they have behaved themselves quite well in the recent past from a technical perspective.
Shares in Avanti Communications (AVN) are volatile and unpredictable even at the best of times. But they have behaved themselves quite well in the recent past from a technical perspective.
The dark Destroyer, Matt Earl is short of Avanti Communications (AVN) and so unlikely to be welcome at what will be a tightly controlled AGM tomorrow. Dissent will not be tolerated one suspect. But should anyone feel brave enough to tackle the King of the bombasts, uber-Welsh CEO David Williams...
It has not been easy being a bear recently as the market rally has seen rises across the board, taking many “ jam tomorrow” stocks with it for no apparent reason. This is mostly a market for waiting rather than acting but occasionally an opportunity for action will arise. One such opportunity may well be Avanti Communications (AVN)
It has not been easy being a bear recently as the market rally has seen rises across the board, taking many “ jam tomorrow” stocks with it for no apparent reason. This is mostly a market for waiting rather than acting but occasionally an opportunity for action will arise. One such opportunity may well be Avanti Communications (AVN)
