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Steinhoff een mooie kans

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josti5
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Misschien in de namiddag nog vuurwerk.
60K-man is nu voornamelijk bezig, met vestzak-broekzak.
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josti5 schreef op 29 januari 2021 12:10:

Misschien in de namiddag nog vuurwerk.
60K-man is nu voornamelijk bezig, met vestzak-broekzak.
Hopelijk nog wel, maar verwacht tot 8 februari rustig. Beetje tussen 10.5 en 11.5
ubu
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www.moneyweb.co.za/news/companies-and...

Steinhoff saga drags onShares rise to almost three-year high, but the group’s battles are far from over.

By Ann Crotty 29 Jan 2021 00:01

Just four weeks into the new year and the Steinhoff share price has already almost doubled.

It is the strongest and most sustained run in the share price since the group’s implosion a little over three years ago; an implosion that saw the share price plunge from around R56 in late November 2017 to a mere R5 a month later.

It will be of little comfort to those who suffered in the R200 billion-plus value wipeout to know that the current R2.10 is the strongest it’s been since early 2019. In January that year it edged above R2, but only briefly.

Which way the share price will go from here is anyone’s guess, but it’s significant that it has held above R2 despite some relatively heavy selling midway through January. The only certainty is that it will never return to anything like its previous inflated levels.

- The share’s performance has little to do with the performance of its underlying businesses; many would reckon this is as it’s always been with Steinhoff – a share price previously pumped with the hot air of exaggerated promises from mergers and acquisitions.

Currently investors are looking closely for signs of progress with the board’s long drawn-out battle to avoid liquidation while occasionally glancing at the operations.

Conservatorium conundrum

A key part of the battle against liquidation is the proposed global settlement with the multiple parties that have launched billions of rands of legal claims against Steinhoff. The claims poured in after Steinhoff admitted it had overstated its financial position by more than R100 billion in the years leading up to the December 2017 implosion.

In 2020 the Steinhoff board announced a proposed block settlement valued at a combined $1 billion, comprising cash and Pepkor shares. However shortly after that announcement US-registered company Conservatorium entered the fray, lodging legal action against the proposed R9.5 billion payout to Christo Wiese-related entities. Conservatorium claims it is the legal successor to a group of financial institutions that had extended funds to Wiese to enable him to acquire the Steinhoff shares underpinning his R59 billion claim against Steinhoff.

Conservatorium contends the bulk of the money is now due to it and not the Wiese-entities.

Conservatorium’s battle over the proposed settlement, which is far from resolved, is considered the greatest risk to an orderly liquidation-free resolution to Steinhoff’s troubles.
ubu
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Pepco progress

Meanwhile investors seem to have taken heart from the group’s recent announcement that it had resumed the “evaluation process” that would determine the strategic future of Europe-based Pepco Group.

In November 2019 Steinhoff said Pepco’s options included a potential public listing; however, subsequent Covid-related issues put the process on hold.

In a Sens statement issued earlier this week the group said: “The evaluation process has now resumed, with a range of strategic options under consideration. The process remains in its early stages and no definitive decision has been taken with respect to any specific course of action or timing at this point.”

Pepco, whose brands include Pepco, Poundland and Dealz, has 2 800 stores in 14 European countries. A trading update released on Wednesday stated that the group “continued to trade resiliently and to make strong progress in the first quarter [to December 2020] despite the impact of significant Covid-related lockdown restrictions on consumer behaviour impacting many key operating territories”.

Pepkor resignation

An issue unlikely to have affected the Steinhoff share price was the announcement that former Pepkor chair Jayendra Naidoo, a once-close ally of Wiese, was resigning from the board with effect from February 1. Naidoo, who had received funding for his investment firm Lancaster 101 from the Public Investment Corporation, had been Pepkor’s chair since September 2017 until his resignation at the end of November 2020. Lancaster currently owns 8.4% of Pepkor.

In November Naidoo explained: “Given the current state of litigation involving Pepkor’s major shareholder and a company related to myself, I believe it is appropriate for the next term of three years that the company is led by an independent chairman.” At the time it seemed Naidoo, who had launched legal action against Steinhoff in 2019, planned to remain on as a Pepkor non-executive director.

This week, in its Sens announcement informing shareholders of Naidoo’s resignation from Pepkor, the board repeated Naidoo’s earlier explanation. It said Naidoo stated the reason for his resignation was that litigation between himself and Steinhoff, which holds 70% of Pepkor, which had made his role as a board member untenable. One of the few analysts who’ve continued to watch Steinhoff says his latest move suggests there may have been ongoing tension between Naidoo and his board colleagues.

Naidoo’s resignation comes just weeks after Wiese’s son Jacob informed Pepkor that he would retire from the Pepkor board on March 10.

Naidoo’s departure means the Pepkor board is now dominated by directors with long-term relationships with Pepkor and Steinhoff. Fagmeedah Petersen-Cook who was appointed in April 2018 and Wendy Luhabe, appointed January 2019, are the only two directors without long-term ties with Pepkor and/or Steinhoff.

A spokesman for Pepkor told Moneyweb this week that Naidoo’s departure “is not expected to have a material impact on Pepkor’s B-BBEE contributor level”.

And as though to prove just how complicated and multi-faceted the long-running Steinhoff saga is, on Wednesday the former owners and management of Tekkie Town issued a press statement in which they made passing reference to Naidoo’s resignation.

- “It is not immediately clear why it took Naidoo three years and R5.8 million in directors’ fees to come to the realisation that his legal advance on Pepkor’s parent company is a significant conflict of interest.”

Tekkie Town battle

However the main purpose of the statement from the former Tekkie Town executives was to provide an update on its prolonged battle with Steinhoff and Pepkor, which had assumed control of the Tekkie Town business.

“Duped into swapping their equity in a highly profitable, cash-generative business for shares in Steinhoff in 2016, the Tekkie Town team has marched slowly and steadily towards their day in court,” said the statement. Their continued focus, says the statement, is to restore their controlling interest in a business they built, one store at a time. That business was injected into Pepkor ahead of its separate listing, as Steinhoff Africa Retail, on the JSE in October 2017.

Last year the Supreme Court of Appeal overturned a high court order in Tekkie Town’s favour that banned Steinhoff and Pepkor from selling or even issuing shares in the Tekkie Town chain. The SCA said the Tekkie Town team had failed to prove fraud by former Steinhoff CEO Markus Jooste.

- This week former CEO Bernard Mostert said that his Tekkie Town team has now successfully joined Pepkor to their legal proceedings and is set to claim restitution and further damages directly against Pepkor.

“On Wednesday, the honourable Justice Lee Bozalek ruled that the Tekkie Town claimants have 20 days in which to amend their restitution and unjustified enrichment claim against Pepkor and its subsidiaries.”

However Pepkor described the statement issued by the former Tekkie Town executives as “scurrilous and inaccurate” and urged the media to treat it with extreme caution “as it is written to deliberately muddy the facts”.

Pepkor said that Justice Bozalek’s ruling was in favour of Pepkor. “The ruling states that the ex-owners of Tekkie Town failed to make out a factual or legal basis for their case against Pepkor. Pepkor is a separate legal entity and as such, cannot be held accountable for the alleged irregularities that happened at Steinhoff.”

However Mostert noted that the judge had not dismissed the case entirely as requested by Pepkor. “If he allegedly found that there was no case and if indeed they won, then why would he not have dismissed the case. Instead he said we have 20 days to amend our claim, which we will now do.”

And so the Steinhoff saga looks set to drag on even as the share price picks up.
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HobbyBeurs schreef op 29 januari 2021 15:53:

Weet iemand toevallig wat het aandeel short is in Steinhoff?
Geen partijen boven de meldingsgrens volgens mij.
Maar dat is wel logisch , komt van 4 cent af , dan valt er niet meer veel te shorten.
Builder12
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www.businessinsider.co.za/is-steinhof...

Ik heb begrepen dat in africa de shortposities geen meldingsplicht hebben. Het artikel geeft aan dat sommige partijen wel 6% short zitten.
ubu
2
www.businessinsider.co.za/is-steinhof...

BUSINESS INSIDER | MONEY AND MARKETS
Is Steinhoff the new GameStop? Its share price has exploded this week

Helena Wasserman , Business Insider SA
Jan 29, 2021, 02:51 PM

- An army of small investors have taken on Wall Street professionals - and they seem to be winning.
- They are buying shares in a struggling company called GameStop, and the resultant rally is costing hedge funds billions in losses.
- These funds have taken massive short positions in GameStop.
- Steinhoff has seen an almighty rally of its own in the past week, and could be a next target for these investment vigilantes.

It has been quite the week in markets, with some large hedge funds bleeding billions of dollars after losing a battle against an army of small investors.

It all started when a group of participants in an investment discussion group on Reddit, a social media platform, plotted together to start buying shares in GameStop, which owns a chain of shops that sell computer games in physical format. The company has been in decline for many years, and large hedge funds have taken massive short positions in its shares.

What is short selling?
It’s a way of making money from shares that fall. Short sellers borrow shares from shareholders in a company – with a contract to return the same number of shares to the owners at a later date. They then sell these shares, betting they can buy the shares back later at a much lower price.
For example, they sold 1,000 shares for R10 each, pocketing R10,000, with an agreement to replace the borrowed shares in a month’s time. When they have to replace the shares, the company is now trading at R8 – so they only need to pay R8,000. Profit: R2,000, minus a fee for the “borrowing” contract, and trading costs.

The small investors started piling into the shares, driving up the GameStop price by 2,500% since the start of the year. This was disastrous for the large hedge funds: they now have to buy back shares at sky-high prices, leaving them with large losses.

Now, investors are wondering what the next target could be, with Steinhoff emerging as a potential front runner.

Global hedge funds hold short positions in the company’s shares, believing that Steinhoff will probably buckle under its debt burden and legal claims.

But the share has seen massive buying this week, with trading volume the highest since July last year, and its share price up 60% in a single week – and now 200% higher than its lowest point over the past year.

South Africa’s best-known short-seller, Protea Capital Management CEO Jean Pierre Verster, believes the sudden interest in Steinhoff is partly due to investors looking for the next potential GameStop. Verster rose to fame after he took short positions in African Bank and Steinhoff, which turned out to be quite profitable for his investors after the near-collapse of both companies.

While it was initially thought that renewed plans to list its European retailer, Pepco, and a solid trading update from Pepco, may be driving this week’s gains – Verster believes it’s also likely that investors are targeting Steinhoff because of the relatively large short positions in the share (some 6% of total shares).

Chantal Marx, head of investment research and content at FNB Wealth and Investments, thinks that Steinhoff may be the most likely JSE-listed contender for a GameStop-like campaign.

It won’t come from local retail investors though, as the community of small traders is not big enough. But Marx says Steinhoff, which is also listed in Frankfurt, could be targeted by European traders.

Steinhoff is indeed under lively discussing by the WallStreetBets Reddit community, who exploded the GameStop share price, in various threads this week, including one entitled “Steinhoff the next better gme [GameStop]”.

But Verster says only a hundred or so traders seem to be taking part in these Steinhoff discussions, and that momentum has started to fizzle out.

Also, he believes the Steinhoff buying will end in tears.

Steinhoff has a debt burden of €9.7 billion (almost R180 billion) and is facing large legal claims for misleading its shareholders.

“The Pepco IPO won’t solve its debt issue, as well as the large settlements it still has to make,” Verster says.

While its share price is now trading above R2, Verster reckons it has a negative fair value – meaning that after all its debts and other liabilities are deducted, the company is worth less than nothing.

The only way that Steinhoff would actually be worth something is if its Pepco listing attracts a very high valuation, and its debt holders agree to convert a portion of their debt into shares in the company, Verster says. Those who are currently buying the shares are betting that both of these events will transpire, in his opinion.

Other companies that have similar profiles to GameStop are PPC and Nampak, which are struggling under large debt burdens and are presumed to be heavily shorted – although there is no official public information about the extent of short selling individual shares in South Africa, says Verster.

Investment banks typically compile their own lists based on internal information. According to a list from one of the largest banks, which was shared with Business Insider SA this week, the most shorted stocks in South Africa are:

MTN
Brait
Reunert
Steinhoff
Massmart
Hyprop
Discovery
Telkom
Implats
Capitec

Builder12
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Omdat niet positief zijn haar/zijn positie vertegenwoordigd...... c.q. Shortpositie.
objectief
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Builder12 schreef op 29 januari 2021 18:28:

Omdat niet positief zijn haar/zijn positie vertegenwoordigd...... c.q. Shortpositie.
Short in dit aandeel; kun je mij uitleggen hoe je dat doet of gaat het om onzin??
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Ik vind het vreemd dat het aandeel hiermee in verband wordt gebracht , alsof de stijging daar vanaf komt.
Gewoon op hoop dat er weer een klein stukje van de puzzel gelegd kan worden ligt hieraan toch ten grondslag.
DeZwarteRidder
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quote:

Builder12 schreef op 29 januari 2021 16:24:

www.businessinsider.co.za/is-steinhof...

Ik heb begrepen dat in africa de shortposities geen meldingsplicht hebben. Het artikel geeft aan dat sommige partijen wel 6% short zitten.
Een totale shortpositie van 6% is niet de moeite waard en een echte shortsqueeze is dus niet mogelijk.
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Ridder , hoe kijk jij tegen de vergelijking met Wallstreet bets aan voor het aandeel Steinhoff?
Ik geloof namelijk niet dat het ook maar iets met de stijging te maken heeft.
DeZwarteRidder
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Alex02 schreef op 29 januari 2021 19:57:

Ridder , hoe kijk jij tegen de vergelijking met Wallstreet bets aan voor het aandeel Steinhoff?
Ik geloof namelijk niet dat het ook maar iets met de stijging te maken heeft.
Volgens mij begon de recente stijging al voor het GameStop-verhaal.

Meest waarschijnlijk is een combinatie van nieuws en WallStreetBets.
Builder12
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quote:

objectief schreef op 29 januari 2021 19:36:

[...]

Short in dit aandeel; kun je mij uitleggen hoe je dat doet of gaat het om onzin??
www.businessinsider.co.za/is-steinhof...

Als je bovenstaand artikel had gelezen dan had je het antwoord al gehad. Omdat het een centenaandeel is wil het niet zeggen dat je geen shortpositie kan nemen die niet lucratief is. Daarnaast kan het ook een bestaande zijn. Als je wilt weten waar je deze positie in kan nemen wens ik je veel zoekplezier naar een nieuwe broker.
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DeZwarteRidder schreef op 29 januari 2021 20:01:

[...]

Volgens mij begon de recente stijging al voor het GameStop-verhaal.

Meest waarschijnlijk is een combinatie van nieuws en WallStreetBets.
Thanks voor je input.
Stijging was inderdaad al eerder aan de gang.
Caramba1
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quote:

Builder12 schreef op 29 januari 2021 20:02:

[...]

www.businessinsider.co.za/is-steinhof...

Als je bovenstaand artikel had gelezen dan had je het antwoord al gehad. Omdat het een centenaandeel is wil het niet zeggen dat je geen shortpositie kan nemen die niet lucratief is. Daarnaast kan het ook een bestaande zijn. Als je wilt weten waar je deze positie in kan nemen wens ik je veel zoekplezier naar een nieuwe broker.
Bullshit verhaal . Het management van Steinhoff heeft een duidelijke strategie die zijn vruchten gaat afwerpen. Shorthandel stelt geen reet voor bij Steinhoff en wordt nu ineens als reden gezien van de stijging maar stap 2 is aanstaande waardoor het aandeel op eigen kracht zijn weg omhoog gaat vinden.
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Caramba1 schreef op 29 januari 2021 20:41:

[...]

Bullshit verhaal . Het management van Steinhoff heeft een duidelijke strategie die zijn vruchten gaat afwerpen. Shorthandel stelt geen reet voor bij Steinhoff en wordt nu ineens als reden gezien van de stijging maar stap 2 is aanstaande waardoor het aandeel op eigen kracht zijn weg omhoog gaat vinden.
Denk ik ook!
Caramba , hoe lang bezit jij al aandelen Steinhoff als ik vragen mag?
Al meerdere jaren , toen de koers nog hoog stond ?
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