Following on from their interim results which were released this week, I notice that Michael Jackson has purchased another 500,000 shares at 2.9p (£14,500 worth) to add to his purchase in April of 1,280,000 at the higher price of 3.75p (£48,000 worth). Michael Jackson is the Non-Executive Chairman of Access Intelligence and now holds 10.36% of the company's issued share capital. You can see my previous blog for my thoughts on this week's interims.
I've also recently commented on Avesco who appear to be on track to beat market expectations for the full year. It's interesting to follow their Facebook page and Twitter feed where there appears to be a real leap in activity recently. This doesn't necessarily mean that business is booming compared to other years, but it does provide a timely reminder about the number of high profile events they are consistently involved in. Currently there is Golf's British Open and next week the Commonwealth Games. Yesterday they also announced this:-http://www.ct-group.com/news/ct-becomes-new-sponsor-eugames. Avesco is valued at approximately £20m and likes rewarding it's investors with chucky dividends.
Finally, Avanti Communications released a trading statement yesterday. It was a bit of a mixed bag, but given the highly speculative nature of an investment here, overall I remain encouraged by their progress. The key figures for me at this stage are that revenue is on track to meet market expectations at between $64m-$65m, and with a cash balance of $195m at year end they are well-financed. I am also encouraged that part of the shortfall in PBT is due to set up costs on large new projects, perhaps suggesting that revenue momentum is likely to continue. It shouldn't be forgotten that it's no mean feat getting two fully functional satellites into orbit, and in recent times their client list has become increasingly more impressive including the likes of Vodafone. Success certainly isn't assured just yet, and it's been a bumpy road but there are signs that the company is reaching a tipping point, and I certainly wouldn't write off the possibility of the company eventually becoming a takeover target.
Avanti is highly speculative as an investment, but whilst yesterday's trading statement caused an initial fall in the share price, there was an immediate bounce as longs honed in on the promising revenue momentum, current finances and the longer term opportunity. As a buy and hold investor you can ride out the fluctuations in share price movements over weeks, months and years if you believe in the company's long term prospects. Bears with short positions might be feeling a tad more nervous given Avanti's revenue momentum going forward and prospective cash generation.
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