tag:blogger.com,1999:blog-2493702735111203560.post7195051928575293323..comments2022-12-02T00:04:08.082-08:00Comments on Investing from the eye of the storm: Is Avanti Communications' equity worthless?dangercapitalhttp://www.blogger.com/profile/11790083989484965803noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2493702735111203560.post-88036519359892566112016-08-04T05:44:42.371-07:002016-08-04T05:44:42.371-07:00Just a heads up that I'm now completely out of...Just a heads up that I'm now completely out of my short position on this.<br /><br />It pretty much played out as expected although things came to a head earlier than I thought cash flow wise which is nice. The high debt interest combined with the failure of management to raise enough money to see them through to cash flow break even or control costs caught up with them in the end and no amount of gloss on the results or accounting gimmicks could prevent that.<br /><br />With a sale of some point on the cards the risk is probably now to the upside. As a separate entity and without a highly dilutive placing I think their liabilities exceed their assets. But a larger player who have a much lower cost of capital could make a case for paying something for the equity. I still think the smart play could be to pick up the space assets from the administrator and bin the failed management but that has risks in itself.<br /><br />The upside isn't clear enough for me to go long but enough to close out my short.dangercapitalhttps://www.blogger.com/profile/11790083989484965803noreply@blogger.com