15225 replies to this topic

[andi222]

I picked this up from another site. There is some serious nibbling going on... Wonder what Peter Armitage will say about the buying going on??

 

 

Nedbank 27 Mil Shares and 

Allan Gray 23 Mil is not small numbers

 

https://www.ariva.de...4#jumppos179854

 

Hi Chris101,

 

thanks for the data. Yeah agreed I think the big guys are slowly realising that in the coming three years we will see a huge upswing in my opinion. All major subsidiary's make good profits in 2019. 

The major problem with this share is that there is no major shareholder. So too many shares are in free flow and there are too many short sellers making money here. However as soon as we have everything uncovered and 2018 AFS are out we will see a slow but steady rise in this share in my own opinion. I will top up a bit next month two weeks before AFS are gonna be released.

[Chris101]

I picked this up from another site. There is some serious nibbling going on... Wonder what Peter Armitage will say about the buying going on??

 

 

Nedbank 27 Mil Shares and 

Allan Gray 23 Mil is not small numbers

 

https://www.ariva.de...4#jumppos179854

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[Chris101]

Hi DTD,

 

I'm not sure if MF has all this debt, so I think the debt will still remain in the Holdings books. So I'm not sure what impact it will have on the NAV.

 

Regarding your impairment question. So Steinhoff overpaid for buying MF. Thus they impaired all of that goodwill. Won't have an effect on deconsolidation. Interesting question however will be at what value they will book in MF as an investment in associates. Are they gonna use book value? Free cash flow valuation? Or at cost? 

 

I spoke to someone really experienced in investing regarding Steinhoff and he told me that I shouldn't forget that PWC was appointed to help restructure the company. Now imagine PWC fails to do this what bad reputation would that give to PwC for future projects? Secondly all board members would lose their jobs and reputation. Again I think they will do and have done their best to get this company running again. 

To concur. Why would the person in charge of the PWC audit jump ship to go to Steinhoff on 1/7/2019 if the ship was sinking?

It will make him and PWC look even more stupid...

Im long and buying.....

 

 

 

STEINHOFF – APPOINTMENT OF CHIEF COMPLIANCE AND RISK OFFICER Steinhoff International Holdings N.V. (“Steinhoff” or the “Company” and with its subsidiaries, the “Group”) As previously announced, the Group is in the process of developing a remediation plan under the auspices of the Supervisory Board. As part of the remediation plan, which includes best practice principles, an initial project plan has been produced and a new position of Chief Compliance and Risk Officer has been created. The Chief Compliance and Risk Officer will have a dual reporting line to the CEO and Audit and Risk Committee. The Company is pleased to announce the appointment of Louis Strydom as the Chief Compliance and Risk Officer, with effect from 1 July 2019. Louis is a Chartered Accountant and prior to this appointment, was the leader of PwC’s African Forensic Services practice as well as a member of PwC’s European, Middle East and Africa Forensic Services leadership team. Louis has more than 32 years’ experience in the advisory and audit profession. Across his career, Louis headed up various global teams, including the team that carried out the Steinhoff forensic investigation over the past 15 months and, as such, is very familiar with the Group and the risks Steinhoff is facing. Heather Sonn, Chairperson of the Supervisory Board, stated “Steinhoff welcomes the appointment of Louis Strydom. He has an impressive track record and knows Steinhoff well. We are delighted that he has agreed to join the Group and we look forward to his contribution. It is crucial that we have a central role to ensure independent risk oversight across the entire Group. Louis has the skill and experience required to achieve these aims and objectives.”

[DayTraderDad]

Have you seen the EBITDA ranges seeking alpha has predicted for 2020 and 2021? 
 
Way above my predictions haha.

Yes but he still has MF consolidated however still much better than today's EBITDA.
Thats for me what makes SNH investable in long term there is considerable grow prospect.
Pepkor Europe has barely scratched the surface of available market and in time will be bigger than Pepkor SA.
But everywhere read read/hear analyst/journalist only focus on Pepkor SA showing their lack of knowledge.

[andi222]

Have you seen the EBITDA ranges seeking alpha has predicted for 2020 and 2021? 

 

Way above my predictions haha.

[DayTraderDad]

Yeah agreed, if the CVA is not implemented they shouldn't even issue AFS for 2018. But I'm sure they doing their best to get it sorted. It's big money for lenders as well so I think they also want to get it sorted asap. But this process takes time as it is extremely complex and they need to make 100% there is no loophole or something where a creditor could claim the company etc. My guess is that before June 18, 2019 we have the CVA Implement.
 
Do you know if seeking Alpha has issued another report regarding Steinhoff after the issue of 2017 results?

There is no new article in Seeking Alpha.

[andi222]

Yes for me the CVA is everything so hope all going well there but from last reported they need to change a few technical issues and get approval so lets hope they do that soonest!!!

 

Yeah agreed, if the CVA is not implemented they shouldn't even issue AFS for 2018. But I'm sure they doing their best to get it sorted. It's big money for lenders as well so I think they also want to get it sorted asap. But this process takes time as it is extremely complex and they need to make 100% there is no loophole or something where a creditor could claim the company etc. My guess is that before June 18, 2019 we have the CVA Implement.

 

Do you know if seeking Alpha has issued another report regarding Steinhoff after the issue of 2017 results?

[DayTraderDad]

Thanks DTD,
 
ok interesting, Let's hope they can sort out the issues and that they can find enough evidence to issue an audit opinion. But for that to happen they need to get the CVA implemented.

Yes for me the CVA is everything so hope all going well there but from last reported they need to change a few technical issues and get approval so lets hope they do that soonest!!!

[andi222]

Andi,

From the AGM presentation:

Auditors
24
• Steinhoff is not opposed to the rotation of auditors, but believes the continuation of
Deloitte as auditor until the completion of the current financial year of September
2018 is essential
• One of the company’s main priorities is the expeditious finalisation of audited
consolidated financial statements for the 2017 financial year, and the revised
statements for the 2015 and 2016 financial years. Deloitte is already involved in
these matters, and the appointment of a new auditor midway through a financial
year will lead to unacceptable delays in the completion of these statements
• The Supervisory Board believes that Deloitte is best placed to apply the outcome of
the forensic processes in completing the 2018 audit
• With a September financial year-end, the 2018 audit process will start a few weeks
after this AGM to ensure a timely completion of the 2018 audit
• Subsequent to the 2018 audit, the appointment of an audit firm for the 2019
financial year will be subject to a global tender process

 

Thanks DTD,

 

ok interesting, Let's hope they can sort out the issues and that they can find enough evidence to issue an audit opinion. But for that to happen they need to get the CVA implemented. 

[DayTraderDad]

Do you know who the auditor is for the 2018 AFS? I doubt Deloitte will do it.

Andi,

From the AGM presentation:

Auditors
24
• Steinhoff is not opposed to the rotation of auditors, but believes the continuation of
Deloitte as auditor until the completion of the current financial year of September
2018 is essential
• One of the company’s main priorities is the expeditious finalisation of audited
consolidated financial statements for the 2017 financial year, and the revised
statements for the 2015 and 2016 financial years. Deloitte is already involved in
these matters, and the appointment of a new auditor midway through a financial
year will lead to unacceptable delays in the completion of these statements
• The Supervisory Board believes that Deloitte is best placed to apply the outcome of
the forensic processes in completing the 2018 audit
• With a September financial year-end, the 2018 audit process will start a few weeks
after this AGM to ensure a timely completion of the 2018 audit
• Subsequent to the 2018 audit, the appointment of an audit firm for the 2019
financial year will be subject to a global tender process

[andi222]

Thanks Andi best we see how they will book the entries.

I agree there are too many well learned and experience people at work so cannot see a failure.

 

Do you know who the auditor is for the 2018 AFS? I doubt Deloitte will do it.

[DayTraderDad]

Hi DTD,
 
I'm not sure if MF has all this debt, so I think the debt will still remain in the Holdings books. So I'm not sure what impact it will have on the NAV.
 
Regarding your impairment question. So Steinhoff overpaid for buying MF. Thus they impaired all of that goodwill. Won't have an effect on deconsolidation. Interesting question however will be at what value they will book in MF as an investment in associates. Are they gonna use book value? Free cash flow valuation? Or at cost? 
 
I spoke to someone really experienced in investing regarding Steinhoff and he told me that I shouldn't forget that PWC was appointed to help restructure the company. Now imagine PWC fails to do this what bad reputation would that give to PwC for future projects? Secondly all board members would lose their jobs and reputation. Again I think they will do and have done their best to get this company running again.

Thanks Andi best we see how they will book the entries.

I agree there are too many well learned and experience people at work so cannot see a failure.

Edited by DayTraderDad, 16 May 2019 - 01:48 PM.

[andi222]

Hi Andi,

According to my calculation (again not an accountant) there are two scenarios that will play:

1 - MF ( SUSHI) takes all the debt and the full debt becomes an asset to SNH then my NAV is E2.23
2 - SNH still responsible for the debt but SUSHI MF takes the debt in their books i.e. MF owes SNH and SNH owes to creditors then NAV E1.06

For me either way is going to be a big improvement. What I still cannot find information is how to deconsolidated when there was a full impairment on
MF. Would be great if someone could explain that!!!

Maybe Captain has a few thoughts on the NAV ???

 

Hi DTD,

 

I'm not sure if MF has all this debt, so I think the debt will still remain in the Holdings books. So I'm not sure what impact it will have on the NAV.

 

Regarding your impairment question. So Steinhoff overpaid for buying MF. Thus they impaired all of that goodwill. Won't have an effect on deconsolidation. Interesting question however will be at what value they will book in MF as an investment in associates. Are they gonna use book value? Free cash flow valuation? Or at cost? 

 

I spoke to someone really experienced in investing regarding Steinhoff and he told me that I shouldn't forget that PWC was appointed to help restructure the company. Now imagine PWC fails to do this what bad reputation would that give to PwC for future projects? Secondly all board members would lose their jobs and reputation. Again I think they will do and have done their best to get this company running again. 

[DayTraderDad]

Ok interesting, so this will then reduce revenue by about 1.6 billion and EBITDA by 40 million. 
 
Really curious how this will impact the balance sheet of the group.

Hi Andi,

According to my calculation (again not an accountant) there are two scenarios that will play:

1 - MF ( SUSHI) takes all the debt and the full debt becomes an asset to SNH then my NAV is E2.23
2 - SNH still responsible for the debt but SUSHI MF takes the debt in their books i.e. MF owes SNH and SNH owes to creditors then NAV E1.06

For me either way is going to be a big improvement. What I still cannot find information is how to deconsolidated when there was a full impairment on
MF. Would be great if someone could explain that!!!

Maybe Captain has a few thoughts on the NAV ???

Edited by DayTraderDad, 16 May 2019 - 11:56 AM.

[DayTraderDad]

Andi and Captain according to Peter Armitage, CEO, Anchor Capital estimates the EBITDA for FY 2018 to be only R6 bil or E375 mil.

Lots of negativity and another article full of colour!!!

www.businesslive.co.za/fm/money-and-investing/2019-05-16-laying-bare-the-ransacking-at-steinhoff/

Highlights:

Armitage says: "The maths don’t look pretty, and it’s hard to see any value whatsoever."

On his estimates, Steinhoff’s ebitda for 2018 could amount to just R6bn — equal to just 5% of the company’s nearly R140bn in net debt.

Interesting Anchor Capital share price in Sep 2016 reached R12.57 today trading at R3.38 a drop of 73% so should we believe the CEO????

[andi222]

Hi DTD,

 

yeah there is so much negativity at the moment. We just have to wait and see.

 

Do you guys know who will be the auditors for 2018? As far as I know Deloitte won't be the auditor for the 2018 AFS. Do you guys know who it will be?

[DayTraderDad]

Andi and Captain according to Peter Armitage, CEO, Anchor Capital estimates the EBITDA for FY 2018 to be only R6 bil or E375 mil.

Lots of negativity and another article full of colour!!!

www.businesslive.co.za/fm/money-and-investing/2019-05-16-laying-bare-the-ransacking-at-steinhoff/

Highlights:

Armitage says: "The maths don’t look pretty, and it’s hard to see any value whatsoever."

On his estimates, Steinhoff’s ebitda for 2018 could amount to just R6bn — equal to just 5% of the company’s nearly R140bn in net debt.

[andi222]

Hi Andi,

This quote from latest fins:

The Management Board has considered the
shareholding and governance structures of
SUSHI and determined that the Group lost
control of SUSHI on 21 November 2018.
Subsequent to this date, Mattress Firm will
be accounted for as an equity accounted
investment in the Group’s 2019 annual
financial statements.

So in view of that will they consolidate 50% or there will be a equity value?

 

Ok interesting, so this will then reduce revenue by about 1.6 billion and EBITDA by 40 million. 

 

Really curious how this will impact the balance sheet of the group. 

[DayTraderDad]

Hi DTD, 
 
ah ok thanks I now see its a table.
 
Interesting prediction you have. Mine is a bit higher for HJ 2019.
 
Revenue I think will come in at 8.5 billion. This excludes Uni-trans revenue. MF however is still included as they still hold 50%. 
I think EBITDA might come in at 567 million €. 
 
I also hope they will release HJ 2019 at the end of June. If they can release these at end of June means they are complying with JSE rules again.

Hi Andi,

This quote from latest fins:

The Management Board has considered the
shareholding and governance structures of
SUSHI and determined that the Group lost
control of SUSHI on 21 November 2018.
Subsequent to this date, Mattress Firm will
be accounted for as an equity accounted
investment in the Group’s 2019 annual
financial statements.

So in view of that will they consolidate 50% or there will be a equity value?

[andi222]

Total revenue for the 6 months E7050 mil and EBITDA E507 mil.

The figures do not include the following:
Property (I cannot get proper information on whats left after the Kika deal)
Automotive - As it has been sold thought to leave it not sure of the date of sale but if it is to be included then should be very similar to the H1 -2018

 

Hi DTD, 

 

ah ok thanks I now see its a table.

 

Interesting prediction you have. Mine is a bit higher for HJ 2019.

 

Revenue I think will come in at 8.5 billion. This excludes Uni-trans revenue. MF however is still included as they still hold 50%. 

I think EBITDA might come in at 567 million €. 

 

I also hope they will release HJ 2019 at the end of June. If they can release these at end of June means they are complying with JSE rules again.