CASH MIGHT NOT BE KING FOR AVENG

Finweek English Edition - - SIMON SAYS -

Another stock hang­ing on by its fin­ger­nails is Aveng as the share trades over 90% down from its 2008 peak – hor­rid re­sults for the com­pany, but many have fo­cused on the fact that they have more cash on their bal­ance sheet than their mar­ket cap. But many con­struc­tion com­pa­nies do and that doesn’t mean a whole lot. Some f ive years ago Ste­fanutti Stocks had more cash than their mar­ket cap but the share has still lost some 70% over the pe­riod. The sec­tor is cash in­ten­sive and if you’re los­ing money, that cash pile will dis­ap­pear quickly.

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