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Aveng (AEG)...free lunch?!

Aveng AEG small cap construction

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#1 Blackobar

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Posted 11 November 2021 - 05:25 AM

I'm glad the share buy backs were voted on, AGAIN. But now after the consolidation and debt repayment, I'd take a dividend over share buy backs. GIVE ME THE CASH.
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#2 Sleepwa123

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Posted 10 November 2021 - 06:49 PM

I think another major point is the increase in liquidity.

Trading at 5 or 6c means that movements in the price are more significant and these level of perceived volatility excludes a portion of the market that would otherwise buy the share.
This increases potential demand and may drive the price higher to more reasonable multiples. That's the theory anyway.

For a share like NUT, I see the price decreasing significantly after consolidation as there simply is no perceived value with all their admin issues and poor communication. Aveng however has significant pipelines of work and more recently well performing businesses
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#3 swartkat

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Posted 10 November 2021 - 06:32 PM

I understand why they want to do the consolidation my only problem is It’s going to scare me away cause it felt good and exciting accumulating shares since I’m still young. So my 1 Million shares will change to 2000 shares which will suck… even though The value will remain the same I don't think the consolidation will grab more investors attention

 

You are not the type of investor they hope to draw with consolidation.

Some institutions wont touch penny stocks, and those insitutions dont buy R60k, they buy multiples.


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#4 Tonyh199

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Posted 10 November 2021 - 05:55 PM

You're not alone there, I hate share consolidationst. In 2019 we voted for share buybacks, but that has been put on the back for the consolidation.

It would not make sense to do a buy back now at 6 cents a share when there has recently been a rights issue at 1,5 cents.The AGM did approve a resolution allowing a buy back but I think this will only happen after the debt is settled ( maybe after Trident Steel is sold) . Even then it would make more sense to resume dividend payments before buying back.


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#5 Tonyh199

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Posted 10 November 2021 - 05:50 PM

I see the  share consolidation have been approved. 

 

I voted against this but knew it will still pass. I hate share consolidations as it has never added value to any of the shares I held in the past that got consolidated. Most of the time the shares lose 30% + of their value post consolidation.

 

 

I know that in theory a share trading pre and post consolidation should be the same but I always maintain that at share pre consolidation at 1c have zero downside where post  a share consolidation of lets say 100 to 1 that new R1 share (100 x 1c) now again has a 99% downward potential back to 1c. My opinion is management must work to get better earnings and eps shall be the determining factor to move the share price.

 

 I am considering selling. Can anyone maybe give me a reason why this consolidation will work that I might be missing.

I think there are a few factors which justify it maintaining and improving on a price of R30 (6cx500):

  • On Price /Earnings Aveng is undervalued at 3 x earnings (WBO is 19x and M&R 86x) . I think even with a consolidation it presents very good value. The market may be waiting for a good set of interim results to confirm the positive trend.
  • The big institutions are backing Aveng with JP Morgan owning more than 20%
  • Trident steel is being offloaded and should fetch 500 million which will wipe out a substantial amount of remaining debt.
  • The consolidation takes it out of the Penny Stock category.

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#6 Blackobar

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Posted 10 November 2021 - 04:52 PM

I see the share consolidation have been approved.

I voted against this but knew it will still pass. I hate share consolidations as it has never added value to any of the shares I held in the past that got consolidated. Most of the time the shares lose 30% + of their value post consolidation.


I know that in theory a share trading pre and post consolidation should be the same but I always maintain that at share pre consolidation at 1c have zero downside where post a share consolidation of lets say 100 to 1 that new R1 share (100 x 1c) now again has a 99% downward potential back to 1c. My opinion is management must work to get better earnings and eps shall be the determining factor to move the share price.

I am considering selling. Can anyone maybe give me a reason why this consolidation will work that I might be missing.


You're not alone there, I hate share consolidationst. In 2019 we voted for share buybacks, but that has been put on the back for the consolidation.
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#7 JR7800

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Posted 10 November 2021 - 04:10 PM

I see the  share consolidation have been approved. 

 

I voted against this but knew it will still pass. I hate share consolidations as it has never added value to any of the shares I held in the past that got consolidated. Most of the time the shares lose 30% + of their value post consolidation.

 

 

I know that in theory a share trading pre and post consolidation should be the same but I always maintain that at share pre consolidation at 1c have zero downside where post  a share consolidation of lets say 100 to 1 that new R1 share (100 x 1c) now again has a 99% downward potential back to 1c. My opinion is management must work to get better earnings and eps shall be the determining factor to move the share price.

 

 I am considering selling. Can anyone maybe give me a reason why this consolidation will work that I might be missing.


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#8 Tonyh199

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Posted 28 October 2021 - 10:22 AM

A couple of positive articles on Aveng in biznews:    https://www.biznews....7/biznews-aveng

 

 


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#9 Spolle

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Posted 18 October 2021 - 10:14 AM

I'm a bit disappointed, too. But it's probably a good thing. Penny stocks are super volatile and speculative. Many investors won't touch them. A share price of R30 may attract a lot more institutional buyers. Imagine buying several million dollars worth at R0.06 and then an hour later it's trading at R0.04?

 

A 33% down draw in moments. That's easy to stomach with a small position, but the big players don't want to see that.


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#10 Peanut_Butter

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Posted 16 October 2021 - 12:17 PM

I understand why they want to do the consolidation my only problem is It’s going to scare me away cause it felt good and exciting accumulating shares since I’m still young. So my 1 Million shares will change to 2000 shares which will suck… even though The value will remain the same I don't think the consolidation will grab more investors attention

Edited by Peanut_Butter, 16 October 2021 - 12:17 PM.

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#11 Money_Talks

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Posted 13 October 2021 - 09:44 AM

can someone explain  how the share price will be calculated and what is the expected value following this consolidation....i.e. will the shareholder be better off/ worse off or the same?

If the share price before the consolidation reflected the true value of the share, then the price after consolidation should be 500 x higher.

 

For example trading at 6c before, then (6c x 500) = R30 after consolidation. Theoretically, shareholders should have the same value before/after consolidation.
 


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#12 Africa1962

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Posted 13 October 2021 - 08:26 AM

500:1 Consolidation to be approved at AGM effective 8 December. 

 

can someone explain  how the share price will be calculated and what is the expected value following this consolidation....i.e. will the shareholder be better off/ worse off or the same?


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#13 Tonyh199

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Posted 13 October 2021 - 08:17 AM

500:1 Consolidation to be approved at AGM effective 8 December. 

 


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#14 Peanut_Butter

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Posted 12 October 2021 - 04:56 PM

Audited financials are out. The company looks very prosperous the assets exceeds it liabilities… the bank overdraft is gone ♥️This really is a diamond Just need to get rid of the accum loss in equity then beautiful numbers!
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#15 Spolle

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Posted 04 October 2021 - 05:26 PM

US markets have been selling off. Some Aveng owners could be selling to meet margin calls in other equities.


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#16 Blackobar

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Posted 04 October 2021 - 04:07 PM

Interesting moves and volume, I'm chilling though, the fundamentals are still great.I'd like to add more at 4c but I haven't been lucky today.
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#17 Queen B

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Posted 04 October 2021 - 01:35 PM

Almost 1.5 billion shares traded so far today


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#18 JR7800

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Posted 04 October 2021 - 09:14 AM

So we back to 4c - what is happening here? any ideas?


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#19 Sleepwa123

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Posted 02 October 2021 - 11:42 AM

Ja stuck at current prices. Seems like more volume are being piled on at these levels.
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#20 Queen B

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Posted 27 September 2021 - 03:53 PM

So where do we think this is going guys? All seems in limbo at 5 and 6 cents  <_<


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