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Steinhoff


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#9001 DayTraderDad

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Posted 07 May 2019 - 05:02 PM

I think the closing auction on JSE is going to tell a story!!!


So looks like market already priced in the coming news!!!
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#9002 DayTraderDad

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Posted 07 May 2019 - 04:58 PM

Spread in xetra is 1.3%
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#9003 DayTraderDad

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Posted 07 May 2019 - 04:39 PM

I think the closing auction on JSE is going to tell a story!!!
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#9004 DayTraderDad

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Posted 07 May 2019 - 04:36 PM

I vote for another delay


Ho no!!!! My nerves cannot take it anymore!!!
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#9005 DayTraderDad

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Posted 07 May 2019 - 04:33 PM

Look at it this way Bubble. 
 
The bad news is needed like foul tasting medicine.  It will be horrible but it is necessary, and hopefully Steinhoff gets well after.
 
We simply HAVE to go through this.  There is no other way.  Besides, if the bad news did not exist, you would never have had this opportunity.
 
To all the guys who e-mailed me privately, thank you for your thoughts and comments.  I hope that the share responds positively after Wednesday and Thursday.
 
Regards
Captainfrom82


Thanks Captain for the great posts my hard hat on and my flying glasses on just in case.
Once the FY 2017 are issues would not surprise me a sudden urge by Investment institution to take a bite at SNH.
I might be wrong but the likes of Alan Grey not allowed to buy into shares without financials so once FY2017 are out and by far the cleanest
financials there might be some serious apatite.
I remember them buying into ABIL at 56 cts while Coronation was on a fire sales so interesting times ahead.
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#9006 Captainfrom82

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Posted 07 May 2019 - 04:16 PM

Here we go, only coming out late afternoon and/or after close...never good news!

 

Look at it this way Bubble. 

 

The bad news is needed like foul tasting medicine.  It will be horrible but it is necessary, and hopefully Steinhoff gets well after.

 

We simply HAVE to go through this.  There is no other way.  Besides, if the bad news did not exist, you would never have had this opportunity.

 

To all the guys who e-mailed me privately, thank you for your thoughts and comments.  I hope that the share responds positively after Wednesday and Thursday.

 

Regards

Captainfrom82


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#9007 Captainfrom82

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Posted 07 May 2019 - 04:12 PM

Really looking forward to the Steinhoff 2017 financials.  I am like a kid on the day before Christmas

 

There are a number of items that needs attention.  Some of them are the acquisitions made during 2016, but which impact the 2017 financials. 

 

  • These include MF which I understand is consolidated effect 1 Oct 2017. 
  • During 2016 SNH acquired Tekkie Town (on 29 Aug) and finalised this to be consolidated effective 1 Feb 2017. 
  • Similarly SNH acquired Fantastic Holdings in Oct 2016 and consolidates this effective 1 Jan 2017
  • 1 April BSG was acquired
  • 12 May a 17% stake in Showroom Prive
  • 25 May a 80% stake in Sherwood Bedding

So some acquisitions will only contribute partially to 2017 earnings, but will contribute for the entire 2018 period (when that is released). 

 

For 2018, many investments were disposed as SNH looked to raise funds to manage their liquidity.  This will impact the 2018 financials which we would need to consider.  Most of these were reflected in the 1H18 financials, but some of the events took place after 31 Mar 2018, and has not yet been accounted for.  

 

Then we have the previously released 1H17 released 7 June 2017 vs the restated 1H17 released 29 June 2018 to contend with.  Just in this period, the equity was amended by E10943 from E16635 to E5632.  Embedded in this restatement was an impairment of E1.5b for MF.  We now learned over the past weeks that incredibly, Steinhoff has revised this upwards by apparently another E1.8b most of which is attributed to MF.  This is startling as Steinhoff only paid $3.8b for MF. 

 

The question therefore is:  How is it possible that Steinhoff paid $3.8b for this business in 2016 and yet impairs almost the entire business in a year.  I think that we are perhaps not fully understanding this as we do not have sight of the deeper discussions.  I have been discussing this with investors across the world (including DTD from this platform).  There is still no clarity.  The impairment of Goodwill cannot be almost equal to the entire price paid.  This would mean that MF had no other assets… no tangible assets.

 

I do not expect anything other than a HUGE loss reported for 2017.  It may be a strategy that Steinhoff are using to bring most of the impairments onto the 2017 FY financials.  By cleaning up the Balance Sheet in 2017, by comparison, the 2018 should be significantly more positive. 

 

But if we get a Sustainable Earnings, boy will this be a bonus.  This will tell us IF  Steinhoff is just undergoing a once off / very short term earnings crisis, and that once this is over, the business may recover.  The alternative is the really frightening picture that You-Know-Who and Tom is repeatedly warning about.  This latter position is what caused WorldCom to go under.  Their earnings simply could not sustain the cost of debt after they issued $11.9b of bonds at a 8.3% coupon rate.  This was beyond the capacity of their sustainable earnings by a shortfall of $4.1b to service.  WorldCom went bust.

 

We need to understand what the numbers are  - even if the higher interest rate only materialised in 2018.

It would not surprise me if the share price were to tank materially this evening and tomorrow in Frankfurt. 

I hope that I am correct that Steinhoff are using the FY2017 results to clean the Balance Sheet and that the impairments are recognised on the Income Statement accordingly.  Even if this reduces the NAV to a pittance, it is by far the better option as the Income Statement for 2018 may be significantly better by comparison.

 

Also looking forward to some robust discussions.  DTD get your hard hat on!

 

Good luck.

 

Best Regards

Captainfrom82


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#9008 Shi

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Posted 07 May 2019 - 04:11 PM

Here we go, only coming out late afternoon and/or after close...never good news!

 

I vote for another delay


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#9009 DayTraderDad

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Posted 07 May 2019 - 04:01 PM

Here we go, only coming out late afternoon and/or after close...never good news!


Yes one hour to go!!!
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#9010 Bubble

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Posted 07 May 2019 - 03:56 PM

Here we go, only coming out late afternoon and/or after close...never good news!


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#9011 DayTraderDad

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Posted 07 May 2019 - 11:35 AM

Thanks Andi222, I suppose it is an odd but relatively accurate way to measure the veracity of some wild claims when it comes to SNH.  It is probably not real news or it is outdated.
 
My understanding is that the CVA will not be put to the Courts without it being put again to the creditors for approval of the further amendments and modifications.  This has not yet taken place.  Steinhoff would need to communicate the success/failure of the CVA consent request.
 
Therefore to state that it has been dismissed is naughty.
 
Regards
Captainfrom82


I also think so I have note there is more and more news media putting fancy wording on the headline to attract sensation!!! Hoping people sign up to get the article.
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#9012 Captainfrom82

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Posted 07 May 2019 - 11:29 AM

Share would have crashed hard if it was new. I think they also referring to the SENS where they said they need to adjust some CVA details.

 

Thanks Andi222, I suppose it is an odd but relatively accurate way to measure the veracity of some wild claims when it comes to SNH.  It is probably not real news or it is outdated.

 

My understanding is that the CVA will not be put to the Courts without it being put again to the creditors for approval of the further amendments and modifications.  This has not yet taken place.  Steinhoff would need to communicate the success/failure of the CVA consent request.

 

Therefore to state that it has been dismissed is naughty.

 

Regards

Captainfrom82


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#9013 andi222

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Posted 07 May 2019 - 11:09 AM

Share would have crashed hard if it was new. I think they also referring to the SENS where they said they need to adjust some CVA details.


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#9014 Captainfrom82

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Posted 07 May 2019 - 10:54 AM

The application was dismissed that was part of previous sens. Not sure if this is fake news and or old news.

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 Hi IN,

 

Can you clarify what you are saying?  What previous SENS are you referring to?

 

Why would Cabinet Maker by all accounts a legitimate magazine, report report either fake news or an old matter today?

 

Regards

Captainfrom82


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#9015 DayTraderDad

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Posted 07 May 2019 - 10:45 AM

The application was dismissed that was part of previous sens. Not sure if this is fake news and or old news.

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Thanks IN
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#9016 Investment novice

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Posted 07 May 2019 - 10:44 AM

I saw these headlines just now has anyone heard anything? I cannot read the full article:

https://www.cabinet-...tform=hootsuite

Steinhoff Europe seeks new CVA approval
7 May 2019

Steinhoff logo11
Global group Steinhoff International Holdings has seen its application to put its European business through a CVA dismissed.



The application was dismissed that was part of previous sens. Not sure if this is fake news and or old news.

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#9017 DayTraderDad

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Posted 07 May 2019 - 10:32 AM

I saw these headlines just now has anyone heard anything? I cannot read the full article:

https://www.cabinet-...tform=hootsuite

Steinhoff Europe seeks new CVA approval
7 May 2019

Steinhoff logo11
Global group Steinhoff International Holdings has seen its application to put its European business through a CVA dismissed.
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#9018 DayTraderDad

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Posted 07 May 2019 - 10:16 AM

Continuing to Fly on Tradegate. Something must have leaked already. Lets hope it continues today. UP 6% already this morning.

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Haha don't like this good news comes out fast so I guess we will have to wait for the close to get the figures!!
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#9019 andi222

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Posted 07 May 2019 - 08:17 AM

RUNNING UP NICELY IN TRADEGATE SO MY GUESS GOOD NEWS ON THE WAY!!


Continuing to Fly on Tradegate. Something must have leaked already. Lets hope it continues today. UP 6% already this morning.

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#9020 DayTraderDad

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Posted 06 May 2019 - 07:04 PM

Overall Markets are down. No SENS issued that audited AFS 2017 will be deferred again. Holding thumbs something positive comes up.


RUNNING UP NICELY IN TRADEGATE SO MY GUESS GOOD NEWS ON THE WAY!!
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