There are two risk to be understood. Insolvency - which would destroy my complete investment, or recapitalisation, which would significantly dilute the value of my holding. I accept these risks, because while I don't expect the price to go back to $1.25 in the medium term, I do expect the price to make a recovery that will compensate disproportionately for the risks taken. If AEZ trades back to the level of the most recent published NAV (24 cents) we will do very well.
I don't expect this to happen this year or even next year. This is one for the bottom draw.
Good luck.
AEZ Price at posting:
2.8¢ Sentiment: LT Buy Disclosure: Held
