I have a small pocket of shares of this one... really not been a good ride. NAV is not the problem, currently the order book (future earnings) is shrinking quite fast and the company faces a lot of litigation.
Granted, if you got in high, the ride would have been rough. But at this point, it seems the share has been punished too much, and there is significant upside potential. I'm not referring to the NAV in totality of R30+, because that can be a pointless exercise. But if all their liabilities are settled there is still a big safety margin of current assets to burn through, and then the rest of the NAV (essentially fixed assets) becomes a bonus safety net as portions of it is converted into current (selling properties etc.).
So essentially their future order book would have to remain suppressed for quite a long time to validate such a low valuation. And if that happened, it would be sector wide, and all the SA construction firms would be in trouble, and they don't even have these safety nets that Aveng has, yet they have much higher valuations.
The usual risk - reward scenario, except the market isn't pricing in the safety margin.
Edited by BoerieBuffet, 12 November 2015 - 09:48 AM.