The Motley Fool

Is the reward worth the risk with Avanti Communications Group plc and Amur Minerals Corporation?

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Shares in Avanti Communications (LSE: AVN) are heading higher today after the company announced that revenue for the quarter to the end of March was up 15% year-on-year at $19.5m on a constant currency basis. Moreover, the company also reported today that it had won some sizeable contracts during the last quarter. These new contracts included a deal to provide connectivity to 4G base stations in the UK with EE Ltd, the mobile operator recently acquired by BT. Having such a big player in the telecoms industry on board is a huge vote of confidence in Avanti and the company’s management.

Avanti’s management also announced today that demand for its High Throughput Ka band satellite capacity in Europe, the Middle East, and Africa has been strong, particularly in the large telecommunications and government sectors. With demand for its services robust, Avanti is confident that it will be able to hit its revenue growth target of 50% year-on-year for the year to the end of June, some much-needed good news for the company’s shareholders.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

Rocky period 

Over the past 12 months, Avanti’s investors have been taken on a wild ride as the company’s share price has collapsed by around 60% since mid-May last year. And year-to-date, shares in Avanti have lost around 50% of their value as investors have become concerned about the company’s financial position and its ability to hit growth targets. Indeed, City analysts expect the company to report substantial losses for the next two years, and it remains to be seen if Avanti can survive long enough to book a profit eventually. 

Analysts expect the company to report a pre-tax loss of £51m for the year ending 30 June and a pre-tax loss of £33m for the following year.

Speculative pick 

Shares in Amur Minerals (LSE: AMC) had a rough start to the year but have begun to make back some of their losses in recent trading days. Year-to-date the company’s shares have lost around 36% of their value and since the beginning of June last year, the shares have lost a staggering 90% of their value. However, in the last week, the company’s shares have started to recover some lost ground and are up around 16% since Monday.

Amur is still in the early stages of exploring its flagship Kun Manie nickel copper sulphide project located in the far east of Russia and it will be several years before this asset starts production and generates a return for shareholders. 

With this being the case, Amur is a high-risk opportunity. The company still has a whole mine to build and finance. If you’re going to buy into Amur’s nickel copper sulphide project, it’s best to do so as part of a well-diversified portfolio so if the company fails, you don’t lose your shirt.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.