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Steinhoff


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#9241 Investment novice

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Posted 15 December 2017 - 09:25 AM

Few interesting points to note

 

1. SENS STAR this morning demonstrates value of underlying assets

2. increased governance measures

3. Steinhoff valuation less than the assets that are owned by it

4. analysts have a hold view- have not seen many calling for sell- definitely cant rate as buy due to their risk management policies

5. high volume trades consistently

6. large employee base

7. banks with vested interest that would rather see Steinhoff remain as a going concern to recoup debts rather than write off losses

8. Pension funds involvement

9. lots of public outcry and accusations on issues but the facts have yet to be disclosed. also tax avoidance is not a criminal act but tax evasion is

 

The above points may give one assurance on betting the house on this share.

 

on the 19th the probability of the banks agreeing to a rescue plan seems plausible- this may the one reason this share has not tanked to R1.  I expect this share to be range bound between R9-R11 until the 18th with surge on the close of business 18th. It may be that Banks respond already by the 18th so I would hazard that it is best to get in today???

 

ride the share for two weeks

 

what are your thoughts........

 

 

 

 

 

 

 

 

 


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#9242 Investment novice

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Posted 14 December 2017 - 01:52 PM

good company with solid financials, I am guessing better ring fenced. try to get some at R15 or R16


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#9243 Goliath

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Posted 13 December 2017 - 04:10 PM

Anyone looking at STAR (Steinhoff African Retail) for the long run..? Tempted at these levels..


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#9244 SoleTrader

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Posted 12 December 2017 - 09:29 PM

Where to from here? Dead cat bounce? Or, more downside till results (audited) are released (if ever released!)??

Anyone buying at these levels? Or, is it just too toxic to touch?

Any chance the share could be suspended??

I took a very small amount at 720c yesterday. I think newsflow is proving. Meeting with bankers implying results will be released. Someone buying, and not just shorts. Talk that non management insiders at steinhoff buying as well. Just wonder where that criminal jooste is?

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#9245 Investment novice

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Posted 12 December 2017 - 12:48 PM

would the asset managers be buying to drive the price and reduce their average cost of holding the shares? with all the built up liability and criminality here you think this company would soon be dissected completely and sold off piecemeal.


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#9246 Bullhunter

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Posted 07 December 2017 - 02:04 PM

One has to wonder, who is buying!!

40% of SNH script was on loan i.e to short sellers. If short sellers want to close their position (take profit) they close by buying the actual shares.


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#9247 Shi

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Posted 07 December 2017 - 11:28 AM

One has to wonder, who is buying!!


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#9248 DividendTycoon

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Posted 07 December 2017 - 09:16 AM

Personally would not buy now, it essentially a gamble.

 

I would actually be worried if I held Shoprite, did Wiese know nothing?? Why did Whitey Basson cash out all his Shoprite? Would have thought it was a good place to keep at least some of your money??


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#9249 Spree

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Posted 07 December 2017 - 12:13 AM

Where to from here? Dead cat bounce? Or, more downside till results (audited) are released (if ever released!)??

Anyone buying at these levels? Or, is it just too toxic to touch?

Any chance the share could be suspended??
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#9250 Procrastinator

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Posted 06 December 2017 - 08:36 PM

The most worrying aspect of this goof up is that the GEPF is showing a paper loss of 12 billion, Gigaba will use this as an excuse to hoof the board of the GEPF so that he can replace them with his operators. Would be very surprised if something like this is not on the cards.
Watch this space.....
Ramifications for SA could likely be very bad.
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Where did those damn 10 baggers go?

#9251 Procrastinator

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Posted 06 December 2017 - 06:41 PM

Am sure I saw a sens from Steinhoff recently regarding a zero cost collar or something placed on futures markets by Weise over some shares, maybe a week or 2 ago, wonder if he was hedging a proper smack to his shares. If so wonder if JSE etc would be on to him for acting on his inside knowledge of the pending shitstorm.
Anyone else know, have deleted the sens.
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Where did those damn 10 baggers go?

#9252 Polly

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Posted 06 December 2017 - 03:58 PM

We already had EOH, now Steinhoff...who is next??  My call Aspen!

 

All manipulated balance sheets whose profits just grow and grow unbelievably...issuing script

 

Skeletons has to show up sometime.


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#9253 Bullhunter

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Posted 06 December 2017 - 03:37 PM

Nedgroup Opportunity fund had 7.25 million ( +134%) more Steinhoff International shares as at the 30th  Spetember 2017 versus 30th June 2017.

 

Eina!


Edited by Bullhunter, 06 December 2017 - 03:40 PM.

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#9254 Shi

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Posted 06 December 2017 - 01:32 PM

1600c and still going :blink:


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#9255 sommerso

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Posted 06 December 2017 - 12:05 PM

Sadly I was on of those opportunists today. Had a brief 6% in the greens. Interesting that the price seems to be "stable" at about just below R20, looking at the trades it looks a bit manipulated? Wonder if anyone is accumulating.....  

 

 


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#9256 LiveInExcess

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Posted 06 December 2017 - 12:01 PM

Opportunistic buyers starting to dry up now...... must watch this one


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#9257 Bullhunter

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Posted 06 December 2017 - 11:34 AM

Following media reports overnight, Steinhoff has released a SENS statement today indicating that it has found new information relating to accounting irregularities, prompting it to cancel its results release today and delay the audited results release until further notice. The CEO, Markus Jooste, has stepped down with immediate effect. Christo Wiese is taking over as executive chairman. We hold Steinhoff shares on behalf of our client base. To place this in context, this company is widely owned by institutional investors in South Africa and as of yesterday was a top 10 company in the JSE SWIX All Share index.

At this stage, there are clearly more unknowns than known information pertaining to the group’s real financial position and operations. It is clear that fraud remains a distinct possibility given the above information.

What we do know is the following:

  • The group has approximately R21 per share of value in the listed stakes that it owns (STAR, PSG and KAP International), per closing prices of these shares on 5th December. It is likely there is some contagion in these assets, and indeed these shares are experiencing selling pressure today.
  • There is net debt on Steinhoff’s balance sheet of ~R100bn, or R23 per share.
  • Aside from its operational household goods retail and manufacturing assets, the group is a significant investor in retail properties in Europe. While we should be suspicious of its reported segmental accounting, it disclosed €243m of operating income from properties in FY16. This could yield a value of €4bn, or R15 per share, and could be regarded as a source of liquidity should the group be broken up into its component parts.
  • This leaves the core operating assets, of which we can be highly uncertain of the value given likely fraud. The key concern investors will have now is that, short of a fire sale of the group’s non-controlled assets to reduce debt, the confidence of debt funders will have all but evaporated and this is likely to place pressure on the group’s ability to fund itself in the normal course of business. A negative operational impact is a certainty.

At the time of writing, the share price is R23.00 this morning and is likely to be highly volatile. We have taken an in-principle decision to exit our holdings given the above developments, but given the share price response this morning we will do this in a manner that maximises value for our clients. It is likely that fundamental value is above current levels – even in a break-up of the business scenario – but the company has clearly lost the trust of institutional investors (ourselves included) and this could weigh on listed values for some time.


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#9258 LiveInExcess

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Posted 06 December 2017 - 11:23 AM

This has been incredible, spent the whole morning refreshing my screen........


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#9259 DividendTycoon

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Posted 06 December 2017 - 08:15 AM

The Thomson Reuters average analyst valuation for Steinhoff is R85. With the share currently trading at around R60 per share, this suggests that there is a one-year potential upswing of 41%.

 

https://www.fin24.co...inhoff-20171030

Wonder what the 'analysts' valuations are now?? South Africa has particularly mediocre analysts, just look at the CIL saga.


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#9260 SoleTrader

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Posted 08 November 2017 - 06:15 PM

and today did not have the courtesy to issue a sens statement regarding this....Management stinks if you ask me.


And that is why the Rupert's and the Wieses don't mix. The latter think the former are snobs and the former think the latter are cons
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