827 replies to this topic

[swartkat]

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.

[Tonyh199]

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.

[Tonyh199]

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.

[Blackobar]

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.

[JR7800]

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.

[Tonyh199]

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

 

 

[Spolle]

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.

[Peanut_Butter]

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.

[Money_Talks]

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.
 

[Africa1962]

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?

[Tonyh199]

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

 

[Peanut_Butter]

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!

[Spolle]

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

[Blackobar]

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.

[Queen B]

Almost 1.5 billion shares traded so far today

[JR7800]

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

[Sleepwa123]

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

[Queen B]

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

[Peanut_Butter]

AVENG(ers) assemble

https://research.eas...ff-235db76c453e

[Tonyh199]

Exactly... Us as shareholders were there when they needed us to reduce their debt and therefore save on interest and this is how they cut into our quantity of shares. Personally, I would much rather wait and let them buy back the shares and therefore safeguarding my quantity of shares. Unless they want to reward us with a ridiculously handsome dividend... which I seriously doubt.

A buy back would be great but I don´t see it happening soon since they have just sold shares through the rights issue at 1,5 cents to buy them back at 6 cents or 7 cents does not make sense until they have at least settled all the debt.