Thanks SB45. I agree, your comments make sense. The other aspect I cannot understand is the fact that Aveng is doing so well in getting rid of unprofitable business, such as the latetest one being Grinaker Aveng which was a money pit money pit yet the market is not responding positively to this news?? Aveng has sold virtually all it loss making operations and using that money to service debt yet we don't see the share price increase not even by a cent or 2
Have you perhaps got an idea what the reason/s could be?
To substantiate the above post :
"Diack said all the disposals are expected to be completed by March next year.
Liquidity through disposals
“We are trying to create liquidity out of the disposal process and strengthen our balance sheet,” he said.
Aveng’s group revenue declined by 16% to R25.7 billion in the year to June from R30.6 billion in the previous year.
This was attributed primarily to the implementation of the strategic plan. Cash and bank balances, excluding bank overdrafts, decreased to R1.6 billion from R2.1 billion and the net debt position reduced to R540 million from R1.2 billion.
The order book for the group’s core assets grew by 36% to R17.7 billion at end-June.
Shares in Aveng dropped 33.3% on Thursday to close at 2c"
So according to Diack on 30/8:
The debt was more than halved to R450 Mil and the order book grew by 36% yet the share price dropped to 2 c on that day?? ........Could this be due to the sheer volume of billions of share in the market and is it possible for Aveng to trim down its shares in future and become leaner with respect to its issued shares? What does it take to do it?