Jooste sacked as Steinhoff CEO

rietrot said:
Only managed to fund my EE account yesterday afternoon so I'll gamble a bit later today. If they half manage to save the company the price should easily double or triple from here.
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Half manage to save what?

They need 6 billion euros of funding (R100 billion) and have 115 billion of debt repayment coming, all of it with revenue probably much lower than the reality.

If they manage to survive without totally breaking down the group or recapitalizing, it’s a miracle.
 
R13... said:
A stupid gamble nonetheless. How do you buy when authorities say they're busy going through documents that continue to show overstated revenues and valuations?
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By gamble money, i mean casino slots gambling, which is also stupid, so if you won't play the slots, this is not the gamble for you...
 
Acid0 said:
Is there an easy way to buy some shares out of your personal capacity or do you need to go through a financial house to do so.
Just thinking of buying a few shares, I can just imagine they will bounce back as they have a lot of business that does make a lot of money.

Yes it might be a gamble but it will be one that I am willing to make
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https://www.easyequities.co.za/
 
Acid0 said:
Is there an easy way to buy some shares out of your personal capacity or do you need to go through a financial house to do so.
Just thinking of buying a few shares, I can just imagine they will bounce back as they have a lot of business that does make a lot of money.

Yes it might be a gamble but it will be one that I am willing to make
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Yes, a stockbroking account, Easy Equaties, ABSA and many other places offer them.
 
f2wohf said:
Half manage to save what?

They need 6 billion euros of funding (R100 billion) and have 115 billion of debt repayment coming, all of it with revenue probably much lower than the reality.

If they manage to survive without totally breaking down the group or recapitalizing, it’s a miracle.
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Lots of speculation at this stage. It is impossible to say. They did say they have some plans to raise the required capital from STAR and selling some non critical assets. I don't think the short term liability will be an issue. The main issue is keeping enough of the management out of jail to continue running the company. I do however hope some of them goes to jail for fraud.
 
Well at the current price of R5.50 a share, dropping a hundred or so bucks shouldn't be too much hurt. Just skip the beer for a week to offset the cost :D
 
rietrot said:
Lots of speculation at this stage. It is impossible to say. They did say they have some plans to raise the required capital from STAR and selling some non critical assets. I don't think the short term liability will be an issue. The main issue is keeping enough of the management out of jail to continue running the company. I do however hope some of them goes to jail for fraud.
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The 6 billion euros are mentioned by the SENS itself, so not speculation.

The 115 billion rands are due over the next 5 years, not speculation.

They can raise around 1 billion euro from PSG (this is what the analysts think is the critical asset), some money from STAR.

Downgraded 4 notches by Moody’s this morning.

The main issue is if they can last 3 or 6 months without breaking down the group? According the analysts who had doubts on Steinhoff, the cash flow is apparently overstated and could be really bad (which would explain the sale of assets).
 
f2wohf said:
The 6 billion euros are mentioned by the SENS itself, so not speculation.

The 115 billion rands are due over the next 5 years, not speculation.

They can raise around 1 billion euro from PSG (this is what the analysts think is the critical asset), some money from STAR.

Downgraded 4 notches by Moody’s this morning.

The main issue is if they can last 3 or 6 months without breaking down the group? According the analysts who had doubts on Steinhoff, the cash flow is apparently overstated and could be really bad (which would explain the sale of assets).
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Yes, but how they will manage to pay it and the financial health of the company is speculation. 5 years is a long time. I'm just concerned for the next 6 mounts right now. That would be crucial to save the company. Even if they break it up somewhat and sell parts of the business R5 a share now should still be a bargain.

Disclaimer: Don't follow my advise, infact this isn't financial advise and if you do what I suggest you will likely lose all your money.
 
May I ask on what basis you make this recommendation? I also have a fairly large exposure, I'm down 59% on the share, and I feel gutted to just lose that by selling off.
 
yatiya said:
May I ask on what basis you make this recommendation? I also have a fairly large exposure, I'm down 59% on the share, and I feel gutted to just lose that by selling off.
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Why are you talking to? rietrot?

He is saying he would buy now at R5. He is not saying anything that people who already have it should read anything into.
 
yatiya said:
May I ask on what basis you make this recommendation? I also have a fairly large exposure, I'm down 59% on the share, and I feel gutted to just lose that by selling off.
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Some people think the company will fail completely then you will lose everything. Even if the share gets suspended it would be a mess and who knows when you will get any money out again.
So then it can make sense to cut your loses and take what you can.
BUT if you think there is any hope it is better to wait it out.
 
Not very encouraging: https://www.bloomberg.com/news/arti...-suffers-blow-as-moody-s-slashes-debt-to-junk

The stock slumped a further 41 percent in Frankfurt on Friday after Moody’s Investors Service slashed the credit rating by four notches to junk late on Thursday, highlighting “the uncertainties and implications for the company’s liquidity and debt capital structure.”
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“There’s no way back,” David Shapiro, deputy chairman of Sasfin Wealth in Johannesburg, said in emailed comments on Friday. “The worry is that there are a huge number of operating companies within the stable – if you were a supplier to these businesses would you sell goods on credit? I reckon they should file for Chapter 11 or business rescue and try and salvage what they can.”
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Acid0 said:
So I see there is three different shares listed at different prices
Which one is the one to buy if we want to take the gamble?
Steinhoff Africa Retail Limited - SRR
Steinhoff International Holdings Limited Pref - SHFF
Steinhoff International Holdings NV - SNH (this one seems to be the lowest one)
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The first one is the African spin-off, nothing to do with Steinhoff International (except some cross liabilities).

The second one is a preference share (check here http://www.profile.co.za/sens.asp?id=72930)

The third one is the right share.
 
Acid0 said:
So I see there is three different shares listed at different prices
Which one is the one to buy if we want to take the gamble?
Steinhoff Africa Retail Limited - SRR
Steinhoff International Holdings Limited Pref - SHFF
Steinhoff International Holdings NV - SNH (this one seems to be the lowest one)
Click to expand...

The first one is the African unit, which will be slightly affected by the whole scandal. The second is the preference shares I think. Useless. The last one is the culprit. It won't exist for long, so if you put your money there then you probably wont get it back either way, especially as rumours of bankruptcy/business rescue are getting strong.
 
AirWolf said:
Anyone managed to get in at R5.00?

High of the day R10.00. 100% return in a day.
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I think I got it at around R5.50, but I'm having some difficulty on easy equities.
(I already complained about that in the other thread)
 
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