15225 replies to this topic

[DayTraderDad]

Interesting News:

 

Conforama confirms the removal of 1,900 posts

The furniture brand will remove 1,900 jobs in 2020 and close some 40 stores.

 

https://www.republic...ssion-de-postes

 

"The unions feared him, it is now a certainty: Conforama will proceed to a massive restructuring. 

 

A restructuring plan must be presented Tuesday morning to the central works council, according to the CGT and FO.

 

He plans to delete 1 ?? 900 positions in France in 2020, with the closure of 32 Conforama stores and the ten Maison Affôt stores.

 

Of the 32 stores that must close and currently have 1,050 employees, eight are located in Ile-de-France, including two in Paris. There are also 600 job cuts in the 164 remaining Conforama stores, 124 deletions at the head office and 26 in the after-sales service, and the 100 jobs in the Maison Dépôt stores"

[DayTraderDad]

Does anyone know anything about the sale of PRINTEX?

 

What was the selling price?

 

See below interesting article:

 

http://www.wellingto...e.cfm?id=117509

 

Highlight:

"WELLINGTON firm Pritex, which has a 240-strong workforce, has been sold to Saint Gobain, an international company employing 180,000 employees in 67 countries.

 

Workers were told yesterday afternoon, before Alan Chapman, managing director of Steinhoff UK Manufacturing Group, released the following statement: “I am pleased to announce that the process of selling the Pritex business has been concluded today.

 

“Saint Gobain High Performance Solutions UK Limited (‘Saint Gobain’) have acquired 100 per cent of the shareholding of the business as well as the freehold for the main Pritex site."

[DayTraderDad]

I agree with you DTD

Not a budge on the share price on Tradegate so I assume nothing happened? Next date then the 9th August for finelisation??

 

Will the 2019 H2 move if abovementioned didnt?

That is the Million Dollar question?? 

I am expecting a trade update from SNH anytime now until the 11th unless they made serious losses the eps should be more then 20% then previous year and I think that will be

something to watch. That should make the share jump.

 

My guess is until there is a concrete announcement how restructuring is done  so that SNH is a going concern many people will still be on the side lines.

 

H1-2019 is going to surprise that is what I think!!

[Chris101]

Well I cannot find anywhere that the CVA Consent No.4 was approved looks like the document just formalised. 

 

One can only assume it was somehow approved.

 

Any ideas???

I agree with you DTD

Not a budge on the share price on Tradegate so I assume nothing happened? Next date then the 9th August for finelisation??

 

Will the 2019 H2 move if abovementioned didnt?

That is the Million Dollar question?? 

[DayTraderDad]

Those making use of the benefits related to spending on credit vs cash (where both are available) make up the minority. By far. People are using credit from the 10th of every month to cover basics like bread, milk, airtime and daily needs.

What you are describing may be fact in developed countries. However, here, I’d have to state that consumers have less spending power, more debt and less fear of what it entails in the long run.

Just a point to think about! Capitec offer DEBIT cards R5 per moth administration fee and R35 for Credit card and quite sure many other banks do also thus my question if people have the cash why not use the debit card which is cheaper?

For me the fact they going for credit card is that they need to borrow and once they use a credit card and don't pay all the debt in the period they will be charged very high interest I may be corrected but is it not as high as 27%???

 

Something does not add up here!!!

[DayTraderDad]

Eventually

Is it good or is it bad??

 

www.lucid-is.com/steinhoff/

Well I cannot find anywhere that the CVA Consent No.4 was approved looks like the document just formalised. 

 

One can only assume it was somehow approved.

 

Any ideas???

[Chris101]

Eventually

Is it good or is it bad??

 

www.lucid-is.com/steinhoff/

[JK001]

Surely the observation of people using credit cards in an ever increasing  fashion does not necessarily translate to indebted consumers.

 

Without wishing to minimise the risks involved with a populace who, while is not quite binging on credit in a gluttonous fest, is certainly showing enormous appetite.

 

To make a balancing counter-weighted point, my observation of South Africa is that it has matured financially over the past 20 odd years where historically most daily expenses were paid by ZAR cash, to one where cashless transactions are almost the order of the day. 

 

Due to the crime rate many people are preferring to pay via debit and credit cards.   The loyalty rewards partnerships with retailers makes the banks reward cashless payments.

 

The banks also offer far more incentives for shoppers to use credit cards compared to cash. 

 

Best Regards

Captainfrom82

 

Hi Captain,

Surprisingly year on year cash in circulation (payments) in South Africa exceed electronic payments growth, current cash growth is more than 5% p/a.   There are many contributing factors to this that are mostly macro factors, Laffer curve, difficulty for immigrants to bank, etc.

That said, cost of cash vs convenience of card payments and rewards like Ebucks is a good reason for e-payment growth.  

I have not seen a significant increase in banking bad debt or collections.  It is true however that consumers are stretched, again mostly macro, petrol price, taxed to extinction, eskom parasitical increases, inflation on items not measured by 'formal' inflation.

There is a strong drive by SARB 2025 vision for inclusive banking.

What appears in one sector (retail) vs. the overall economy however gives a distorted view.

[new john]

Surely the observation of people using credit cards in an ever increasing fashion does not necessarily translate to indebted consumers.

Without wishing to minimise the risks involved with a populace who, while is not quite binging on credit in a gluttonous fest, is certainly showing enormous appetite.

To make a balancing counter-weighted point, my observation of South Africa is that it has matured financially over the past 20 odd years where historically most daily expenses were paid by ZAR cash, to one where cashless transactions are almost the order of the day.

Due to the crime rate many people are preferring to pay via debit and credit cards. The loyalty rewards partnerships with retailers makes the banks reward cashless payments.

The banks also offer far more incentives for shoppers to use credit cards compared to cash.

Best Regards
Captainfrom82

Those making use of the benefits related to spending on credit vs cash (where both are available) make up the minority. By far. People are using credit from the 10th of every month to cover basics like bread, milk, airtime and daily needs.

What you are describing may be fact in developed countries. However, here, I’d have to state that consumers have less spending power, more debt and less fear of what it entails in the long run.

[Captainfrom82]

If the share price recovers people will start to withdraw their claims against Steinhoff. Wiese said in the interview that shareholders won’t be able to get their money back anyway and that is why he wants to be seen as a creditor. He is trying to play it both ways. I will be better for everyone if share price and company recovers including Wiese..The lawyers are just spreading negativity with false hope for their own interest. They are interfering with the share price I hope people will see through them.

 

Yes.  Unfortunately though, no matter how distasteful you may find it, they have a right!

 

You think this is bad? You should visit Uncle Sam's Country!

[Captainfrom82]

Being in the retail industry (financial side) myself I can confirm that without a shadow of doubt, more and more food / grocery purchases are bought on credit as the months / years go by. It’s scary. It leads one to believe that eventually, the levee will break.

 

Surely the observation of people using credit cards in an ever increasing  fashion does not necessarily translate to indebted consumers.

 

Without wishing to minimise the risks involved with a populace who, while is not quite binging on credit in a gluttonous fest, is certainly showing enormous appetite.

 

To make a balancing counter-weighted point, my observation of South Africa is that it has matured financially over the past 20 odd years where historically most daily expenses were paid by ZAR cash, to one where cashless transactions are almost the order of the day. 

 

Due to the crime rate many people are preferring to pay via debit and credit cards.   The loyalty rewards partnerships with retailers makes the banks reward cashless payments.

 

The banks also offer far more incentives for shoppers to use credit cards compared to cash. 

 

Best Regards

Captainfrom82

[DayTraderDad]

Interesting about 2020 bedding sales in the USA:

 

https://www.furnitur...nel=tw-20084456

[Milo]

If the share price recovers people will start to withdraw their claims against Steinhoff. Wiese said in the interview that shareholders won’t be able to get their money back anyway and that is why he wants to be seen as a creditor. He is trying to play it both ways. I will be better for everyone if share price and company recovers including Wiese..The lawyers are just spreading negativity with false hope for their own interest. They are interfering with the share price I hope people will see through them.

 

 

[new john]

Being in the retail industry (financial side) myself I can confirm that without a shadow of doubt, more and more food / grocery purchases are bought on credit as the months / years go by. It’s scary. It leads one to believe that eventually, the levee will break.

[DayTraderDad]

I would be interested to see if a reversal is possible or even legal.

 

If I understand matters correctly, the short term win by Tekkie Town in the Cape Town Court did not relate to the core transaction wherein Steinhoff bought Tekkie Town.  Rather the judge ruled that Steinhoff cannot dispose of the asset.

 

Both sides of the matter have good points.  Tekkie Town claim they made their decision on fraudulent info.  The fact however, is that they did not elect to receive their 58% in cash like Actis who was paid 42% of the R3.b in cash.

 

The question therefore is Why should Actis now prejudiced because of van Huyssteen's and Mostert's greed when they opted for payment by Steinhoff shares rather than cash?  Do you think they would be asking for the transaction to be reversed had they been paid in cash?

 

The central thesis here is that van Huyssteen and Mostert overtly chose the payment via script.  They must now be treated accordingly, like any other shareholder who bought Steinhoff shares based on the fraudulent financials.

 

I often hear people quoting the example that van Huyssteen and Mostert (and Wiese for that matter) had been paid with a cheque that bounced.  This is not a correct example IMHO.  A fairer example would be to stated that they chose to be paid with a lotto ticket wherein they stood a chance to really win big. They now claim that the odds  were not what they understood it to be.  But the point is that by opting for the shares, they chose the risk.

 

Best Regards

Captainfrom82

Haha well put Captain,

 

Maybe these guys are onto something new, ability to by a Lotto ticket with a guaranty of winning, if your number does not come in you get your money back!!!

 

Yes exactly my thought ACTIS made a good profit on their investment very sure their will not be willing to give the money back.

 

I wounder if MJ would also be required to payback the money that went missing from the transaction if it was reversed?

 

We must also not forget I believe there was also future bonus promised!!

 

In December at Somerset Mall I saw Tekkie Town with a few shoppers and 10 m next door Mr. Tekkie with no shoppers only staff shifting shoes around.

 

I don't think in a market where people using credit cards to by food will be splashing on Tekkies!!!

 

Interesting article:

Worrying signs that consumers are using credit cards to cover daily living expenses

 

https://www.business...drowns-in-debt/

 

Highlight:

""We have seen consumers increasingly using credit, possibly to finance day-to-day living expenses, and [they] are prioritising the payment of credit cards," said the agency's director of research and consulting, Carmen Williams.

 

Struggling to manage their debt obligations, consumers often keep credit cards alive at the expense of mortgage bond or car repayments, according to TransUnion."

 

Regards,

DTD

[Captainfrom82]

I just hope the courts will reverse the full Tekkie Town purchase because SNH overpaid for that business.
 

 

I would be interested to see if a reversal is possible or even legal.

 

If I understand matters correctly, the short term win by Tekkie Town in the Cape Town Court did not relate to the core transaction wherein Steinhoff bought Tekkie Town.  Rather the judge ruled that Steinhoff cannot dispose of the asset.

 

Both sides of the matter have good points.  Tekkie Town claim they made their decision on fraudulent info.  The fact however, is that they did not elect to receive their 58% in cash like Actis who was paid 42% of the R3.b in cash.

 

The question therefore is Why should Actis now prejudiced because of van Huyssteen's and Mostert's greed when they opted for payment by Steinhoff shares rather than cash?  Do you think they would be asking for the transaction to be reversed had they been paid in cash?

 

The central thesis here is that van Huyssteen and Mostert overtly chose the payment via script.  They must now be treated accordingly, like any other shareholder who bought Steinhoff shares based on the fraudulent financials.

 

I often hear people quoting the example that van Huyssteen and Mostert (and Wiese for that matter) had been paid with a cheque that bounced.  This is not a correct example IMHO.  A fairer example would be to stated that they chose to be paid with a lotto ticket wherein they stood a chance to really win big. They now claim that the odds  were not what they understood it to be.  But the point is that by opting for the shares, they chose the risk.

 

Best Regards

Captainfrom82

[DayTraderDad]

Hi. I was also expecting the extension communication by cob friday 28th june.

Regarding valuations...your major adjystment factor is the legal liability and credit risk...hopefully latter will be resolved soon. The discount on the share will only inprive when snh starts to echo some form of positiveness around the strategy going forward. Perhaps at the agm .

Sent from my SM-G950F using Sharenet Sharechat mobile app

Yes I agree once the restructuring of the debt and the de-consolidation of Conforama and Greenlit Brands is done the balance sheet will be good and with the controls
put in place quite sure they will get a investment rating again and be able to get loans/bonds at the low interest my thought of 2.5%. (Its looking more and more quantitative easing coming back)
Which on the debt of E3 bil (after removing the debt of MF, Confo and Greenlit)interest payment would be E75 mil per year.
As Captain mention it will take years to sort out the claims and as the share price rises so does the claims reduce.
I just hope the courts will reverse the full Tekkie Town purchase because SNH overpaid for that business.

Anyway my thoughts!! Not designed to defraud people or plant lies to induce people to buy SNH shares!!

Edited by DayTraderDad, 01 July 2019 - 01:16 PM.

[Investment novice]

Hi. I was also expecting the extension communication by cob friday 28th june.

Regarding valuations...your major adjystment factor is the legal liability and credit risk...hopefully latter will be resolved soon. The discount on the share will only inprive when snh starts to echo some form of positiveness around the strategy going forward. Perhaps at the agm .

Sent from my SM-G950F using Sharenet Sharechat mobile app

[DayTraderDad]

Hi Captain,

Many thanks for the explanation I was not aware they have until the 5th July. Very confusing having a deadline at different date.

I agree also not selling any shares topped up last week and expecting a good run up after the trading update that I am expecting by Friday.

Like wise going to be shot down , will be call a fraud and liar hopefully not another racist rant but my near term target of R7.60 to R7.80
is now not far off.

I updated my model and come up with a Total equity attributable to owners of Steinhoff N.V.: NAV of E0.51/share for H1-2019

and a Total NAV of E0.78/share (including the Non-Controlling interests). With Conforama still consolidated because that the next bonus
coming up in the H2-2019.


Regards,
DTD

[andi222]

Hi Captain,

 

thanks for the clarification. Yeah I also see value in this company and believe me no one will get my shares anytime soon even if it drops to zero haha. 

 

I think we will see a nice run up until HJ 1 results, So might top up this week at around 8 cents.