CASH MIGHT NOT BE KING FOR AVENG
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.