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Aveng (AEG)...free lunch?!

Aveng AEG small cap construction

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#41 Trader001

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Posted 09 October 2019 - 03:18 PM

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?

 

Regards

 
63
SHARES
 
 

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?

 

 


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#42 Trader001

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Posted 09 October 2019 - 02:05 PM

Also check the comment made by Orion why they went with Byrnecut for their Preiska mine....Technology and Technic. Moolmans could have done the job but lost out to Byrnecut

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?

 

Regards


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#43 SB45

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Posted 08 October 2019 - 07:38 PM

Also check the comment made by Orion why they went with Byrnecut for their Preiska mine....Technology and Technic. Moolmans could have done the job but lost out to Byrnecut
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#44 SB45

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Posted 08 October 2019 - 07:35 PM

"
Aveng has been restructuring as part of a two-year strategy to survive by lessening its exposure to the South African construction and engineering market and transforming into an international group involved in contract mining in sub-Saharan Africa and West Africa and construction in Australia, New Zealand and Southeast Asia."
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#45 SB45

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Posted 08 October 2019 - 07:34 PM

Check the paragraph about the restructuring in Aveng. On the African continent, where Moolmans has been strong before and mentioned that they have lost ground in the market. Byrnecut Offshore seems to have grown quite strong in these markets and hence I make a point that they are eating Aveng's lunch. Only expanded in 1999. At home in their backyard in NC Aveng lost to the same group Byrnecut Offshore on the Prieska Zinc/Copper mine. They are in the Vedanta Zinc mine not far from Prieska. I checked both their websites hence I concluded that the Ausies are really giving them a hard time amongst other players ofcourse. With the Moolmans losses for me Aveng suffers from bad execution of projects more than a bad market.
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#46 Trader001

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Posted 08 October 2019 - 06:25 PM

https://www.iol.co.z...better-31706291

We now know that Byrnecut Group has been having Moolmans' lunch in Africa

Hi SB 45,

Cannot find a connection between your comment and the article that you have posted? can you explain in more detail? Regards 


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#47 Lionelza1

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Posted 20 September 2019 - 11:07 AM

Yooohh back to 1c
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#48 SB45

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Posted 04 September 2019 - 07:44 PM

https://www.iol.co.z...better-31706291

We now know that Byrnecut Group has been having Moolmans' lunch in Africa
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#49 SB45

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Posted 30 August 2019 - 08:53 PM

Shi, interesting indeed, now they need to close the Grinaker deal(their biggest money pit) money in the bank and anncounce the sales of the balance. Moolmans, Mtentu Bridge termination costs that might occur worry for me still but lets see if my bleeding can be stopped in the next FY.
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#50 SB45

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Posted 30 August 2019 - 08:44 PM

https://www.cnbcafri...nsolidate-debt/
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#51 Shi

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Posted 30 August 2019 - 03:58 PM

https://www.moneyweb...ayment-of-r50m/

 

Interesting bit 

The group, which in 2018 launched a major strategic action plan to return it back to financial health, on Thursday also revealed that it expects to achieve an operating profit in the second half of its current financial year when all of its non-core asset disposals are expected to have been finalised and moved out of the group.


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#52 SB45

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Posted 09 August 2019 - 06:21 PM

Thanks Andi, very useful link, with the detail I was clearly missing. I agree on company progress, selling side an issue for sure
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#53 andi222

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Posted 09 August 2019 - 05:27 PM

Institutions only hold around 30 %

 

https://www.mornings...e/aeg/ownership

 

Aton has 25 %

 

Most of the rest is sitting in the hands of the old convertible bond holders. They are currently the ones who want to get out. See close to 1 billion shares for offer at 3 cents.

 

Even with a share consolidation price will keep on falling as too many sellers are on board. My best guess is to put an order up for one cent. 

 

Fact: The company is in a good progress to return to profitability, however too many shares in free float and big investors who need to get out.

 

 


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#54 SB45

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Posted 09 August 2019 - 04:28 PM

With the results i suspect an announcement on share consolidation for the trimmed "new" Aveng
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#55 SB45

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Posted 09 August 2019 - 04:25 PM

Andi, that would be bad.....checked that over ~ 93% of issued shares with institutional investors(unintentional) with ~70% offshore revenue, would they still want to remain listed on JSE? At 1c Aton loss would be a bit much, unless someone wants to pull a Dawn on Aveng. Lets see how it turns out
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#56 andi222

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Posted 09 August 2019 - 03:55 PM

And with the rand dollar exchange tanking this should surely represent a change in fortunes. 80million shares traded on thursday.

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My guess this will drop to 1 cents soon. Too many shares in issue and Aton wants/needs to get out.


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#57 skeez

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Posted 09 August 2019 - 03:02 PM

And with the rand dollar exchange tanking this should surely represent a change in fortunes. 80million shares traded on thursday.

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#58 SB45

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Posted 09 August 2019 - 12:26 PM

After market close SENS, Aveng has sold Grinaker, Aveng Steel the only remaining money pit. Majority of their earnings will be in foreign currency, interesting times ahead. FY results 20.08.2019
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#59 SB45

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Posted 08 August 2019 - 09:53 AM

Tough to sell Grinaker and Trident Steel, money pits, Final numbers coming out this month, lets see if good progress is being made.

 

https://www.business...to-stay-afloat/


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#60 SB45

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Posted 30 July 2019 - 05:49 PM

Polly I though so too but ~4,8bln shares, for ~€30mln, sold at 0.03, is a potential loss of ~€21mln. But then again might be nothing for these guys.Do you anticipate pump and dump to lessen the blow ?
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