Don't try this at home!

Quick blog update re: Avanti  Communications.

Now regular readers will know that I'm a long term micro-cap investor by nature. It has served me well to date.

You will also have read my recent blog about my investment in Avanti Communications:-

http://michae1mouse.blogspot.co.uk/2016/07/avanti-communications-triumph-of-hope.html

Well today I acted out of character and did something I wouldn't normally consider.

In short I made a trade in Avanti. Yes I know.... after everything I have written about speculating!!!!!

However, let me explain and try and convince you that it wasn't as speculative as it may first appear.

Firstly, can I just say a big thank you to the poster on ADVFN who posted a link to the FT.

Most stuff posted on BBs is waffle and junk posted by those with a vested interest, similarly on dubious tip sites. However, links to respectable websites are often useful.

This particular FT link was suggesting that Avanti Communications had received an indicative offer of £1.40 from Inmarsat, although clearly it never materialised for whatever reasons. It also suggested that Avanti were in discussions with two other potential bidders.

Now I had a dilemma. Avanti had been a speculation for me, but I was convinced at the time that it's asset base and the considerable risk and difficulties encountered by launching satellites into space would enable the company to come good in the end. They were also beginning to gain traction in selling capacity to Blue Chip companies. Unfortunately, as is often the case, debt was Avanti's Achilles heel combined with a slower than anticipated take up of capacity on their satellites. The rest is history as they say. It's a shame because given more time Avanti could have been a excellent British start-up success story.

However, the bid story appeared plausible to me given the reasons I have expressed  above.

Since the share price was 27p, I took a calculated punt, and how I laughed as the price fell back instantly after I'd made the trade.

However, a brief moment of regret soon turned to joy as the price then began to soar. I took profits later in the day. Not a bad days work I'd venture. Making a quick buck through trading isn't usually my bag, but when you're familiar with a company and it's history, I have found that you get a feeling when a trade is possible. However seldom that may be in my case.

What now then? Well I'm wondering if I should have just stuck in there?

Technical factors may push Avanti much higher from here even if a bid doesn't materialise in the next few days. I may even be back for further trades.

Undoubtedly shorters will be having a sleepless night and palpitations. Imagine a bid coming in at £1.40+. Short covering will possibly be rampant tomorrow, particularly since I gather that a certain tipster has suddenly recommended that his lemmings (sorry followers) close their shorts in Avanti. What happened to his carrion cry of this one's going to zero? Mind you, if you follow third rate websites with dubious and equally third rate tipsters then you get what you deserve.

I won't mention the website, but you'll know the one I mean, there's lots of puerile swearing and given the captions you might think that you've landed on a soft porn site. God knows what you receive if you register with them? Anyway, I suppose it knows it's audience.

Tomorrow should be interesting, and remember this is a one off for me and don't try this at home!