60% down and still standing… mostly in rubble. Here’s my Aveng disaster story.

My investment journey started long before Aveng. As a young and cautious investor, my early bets built a steady foundation — or so I thought. Then, eager and maybe a bit overconfident, I jumped headfirst into Aveng.

Looking at the fundamentals, it screamed value:

• Assets: Aveng had a solid asset base — including equipment, property, and cash reserves — that, on paper, exceeded its market capitalization.
• Management: A new leadership team promised to turn the ship around after years of struggle.
• Profits: The company reported a few profitable quarters, signaling a possible end to its long slump.
• Expansion: Aveng was making waves as the first South African construction firm to turn profits in Australia, outpacing competitors like WBHO and Murray & Roberts.

The crown jewel was McConnell Dowell, Aveng’s Australian subsidiary, which accounted for most of the recent profits. With these factors, Aveng seemed like a textbook value stock — undervalued with solid underlying assets and a path to recovery.

So, where did it all fall apart?

Unfortunately, my faith in management was misplaced. Behind the scenes, project delays, cost overruns, and contract disputes piled up. The company faced fines and write-downs, eroding investor confidence. Subsequent quarterly reports were ugly, signaling operational chaos rather than steady progress.
The much-touted turnaround felt more like a house of cards. The “cone test” of management’s promises revealed a weak mix: too much optimism, too little execution. What started as a hopeful bet turned into a painful lesson as my portfolio took a 60% hit over four years.
There was never a strong foundation — only empty promises and shaky ground.

So, what now?

I’m still holding. Down about R130,000, it’s definitely not a badge of honor. The big question: do I cut my losses or keep the faith?

Selling now would mean accepting a painful loss and freeing capital to invest elsewhere. Holding on, however, could pay off if Aveng’s management pulls off a genuine recovery. But that’s a big “if.”
Investing isn’t about winning every bet; it’s about learning when to hold tight and when to let go. For now, I’m watching closely, balancing hope with hard realities.
This isn’t just a story about one stock — it’s a reminder that even “value” investments can crumble, and sometimes, the real asset is patience and grit.