Avanti Communications - "The triumph of hope over experience"

When I started this blog, I did say that it would be a warts and all blog. DCD media was one such blemish, and I can now safely add Avanti Communications to my ignominious pile.

I bought shares in Avanti Communications in 2012 for £2.60. Thankfully not too many, as I explained below:-

http://michae1mouse.blogspot.co.uk/2012/10/speculate-to-accumulate.html

Reading that blog again today did bring a wry smile to my face, particularly this bit :-

However, on the flip side there are probably a thousand and one things that could still upset the applecart, hence until there are visible significant revenues, cash flow and profits it remains highly speculative. Brokers quote anything from £6-£20 a share as possible in the medium term (which probably tells you everything you need to know i.e. just pick any number out the air?).

Since 2012 the share price has pretty much been in terminal decline, although remarkably there were two occasions where I was briefly in profit, although coming back to my purchase and blog post, my speculation probably serves to illustrate

"The triumph of hope over experience"

Note to self. Don't deviate away from sensible investment criteria. I usually stick to micro-caps which generate revenues, profits, carry little if any debt and have solid balance sheets. What was I thinking?
Avanti could boast growing revenues, but that was about it. It wasn't even a micro-cap, aaargh!

Anyway, today's trading statement and funding requirement was the final straw, and I have cut my losses. I did get a bit of luck in selling for just over 39p, given that as we speak the share price is currently 23.5p to sell. Nevertheless, a substantial loss on my original investment.

On a more positive note, the losers often teach you far more than the winners (as with DCD Media).  I always review my other holdings following bad news and I am more than comfortable with all of them at present, chiefly because they adhere to my strict criteria. Furthermore, since I recognised that Avanti was a speculation, my original outlay and hence subsequent losses were negligible when set against my overall portfolio.

Finally, I feel that I ought to mention a company called Optibiotix.  I set up a thread on Advfn which expresses my negative views re: the investment case for the company. I don't really have a vested interest one way or another in the company, but I have allowed myself to get drawn in to trading insults with some rather unpleasant individuals who are no doubt currently leaping up and down with joy following Avanti's trading statement. It reflects badly on me as well as them. Would I behave like like outside the virtual world. No. Shame on them and shame on me.

Bad Karma with Avanti?  No just a crap investment decision on my part.

I will simply say the following, and then leave it at that. Optibiotix is a speculation, and not a company I could invest in, even more so now. It is already valued at over £60m, but doesn't generate any significant revenues. The balance sheet is ok, but doesn't justify a market cap. anywhere near £60m. Profits will be years away yet, and I expect further fundraisings will follow. That said, sometimes speculations pay off. However, returning to my heading, more often than not, money thrown at companies like Avanti, Opti, Moni, Nano, IOF etc is "The triumph of hope over experience".

Good luck.