What a cold and depressing winter it has been… For the JSE that is.
Since Steinhoff's debacle, we've seen some of the largest companies on the JSE crash 30% to over 89%, which I'll explain in just a minute.
And there are no signs yet for recovery until the end of 2019.
In today's article we'll cover the Ugly and the Bad for the JSE and a little bit of Good on how we can profit during... ››› more
In July 2018 I told investors that Trustco Holdings, and the accounting tricks the company were up to, was flashing red lights on my radar…
As I explained to investors back then, Trustco was being investigated for insider trading, the company's CEO has a dubious management and remuneration agreement with it, and there were deals being done with the CEO that weren't fair to investors.
Wha... ››› more
The Steinhoff debacle hurt a lot of investors.
If you held Steinhoff shares before the crash - you'd be down around 97% on your money today.
And the chances of ever recovering all the losses are close to zero…
But what you should know is that situations like this can be avoided.
There are at least four clues to follow that are warnings signs of an impending disaster like that of ... ››› more
Back in 2015 I made a quick 56% return from Trustco Holdings. Back then, the share looked like it had a lot of promise.
And had I held on, I could've made even bigger gains as the share continued rising - now sitting at R10 a share from its 2015 lows of 255c.
But my reasons for selling the share were, and are still valid.
The CEO sold personal assets to the company under questionable cond... ››› more
It came as a shock to most investors when the Steinhoff scandal was exposed in December 2017.
The share dropping 96% didn't just hurt unaware investors though.
Some of the biggest investment funds in Africa got hit, including the Public Investment Corporation.
This article isn't about to tell you that you could've predicted the Steinhoff debacle…
But what I want to tell you is h... ››› more
In just a couple of days, around R183 billion was wiped off Steinhoff's market cap. The company's shares have lost over 80%. CEO Markus Jooste resigned with immediate effect.
Investors, asset managers and fund managers lost a fortune!
So what exactly happened?
"Steinhoff has involved itself in some shady dealings which involves accounting irregularities and overstating profits.”
... ››› more
Commodities take a step lower
Brent oil led the commodity basket lower last week, losing 8,1%; Platinum and Gold were down 5,7% and 2,4% respectively.
Although the Rand softened, the pressure was too much for the JSE All Share Index which fell 0,8%. Resources fell 5,5%, but the rest of the sectors held up well.
International indices were slightly softer across most time zone... ››› more
JSE All Share marginally positive, up 0,7%
After several volatile weeks, due to policy uncertainty, some calm appears to have returned to the markets. The JSE All Share Index was up 0,7% last week. Resources were down 3%, while Industrial's up 1,8% and Financials' up 2,5% lifted the markets overall.
Brent Crude up 5%
Russia indicated it would support a cut in output if adopted by Opec. Ma... ››› more
Singa Gungqisa, Portfolio Manager at Rand Swiss gives you an exclusive look into what he'd consider a buy this week and which shares you need to take out of your portfolio...
Three stocks to buy right now
Aspen Pharmacare APN.J –The group is very busy setting up businesses and partnering with local firms in Asia pacific where the scope for growth is high in the nutrition segment.
... ››› more
Local furniture manufacturing may not be the most exciting sector on the JSE, but there is one furniture company bucking the trend. This company doesn't care if the South African consumer is “under pressure”. It doesn't care if South Africa's economic growth outlook is weak. In fact, shareholders were most likely celebrating in secret when they heard Pravin Gordhan was being investigated by th... ››› more
Last week, as investors continue to dump emerging market assets in anticipation of US interest rate hikes, the rand hit a 14 year low of R12.77 to the dollar.
The rand hasn't been this low since December 2001.
Since the beginning of 2015 alone, the rand fell almost 10% against the dollar.
My point is, our local currency is under pressure and this has a major impact on you.
You see, e... ››› more
Founded in 1964 by Bruno Steinhoff, from its humble South African beginnings, Steinhoff International Holdings is now an international furniture and household goods retailer. It is one of the top 40 companies on the Johannesburg Stock Exchange…
Full name: Steinhoff International Holdings Limited
Short name: Steinhoff
Ticker: SHF
Sector: Personal & household goods – household goods & home ... ››› more
As I was sitting in the office having a cup of coffee, I saw the biggest corporate deal I've ever seen in South Africa.
Steinhoff International Holdings (international furniture retailer) said that they plan to take Pepkor (the clothing retailer) to a whole new level.
In fact, Steinhoff said, they're going to buy an insane 92.3% of Pepkor for R62.8bn.
When I read the news, I went straigh... ››› more
It's emerged that a number of directors of Steinhoff International bought a substantial amount of shares in the company in September.
The directors who purchased shares didn't disclose that a deal was imminent with Pepkor.
Last Tuesday, shares in Steinhoff soared on the back of the Pepkor takeover deal.
Let's take a closer look…
Steinhoff didn’t notify shareholders about an impe... ››› more
Yesterday, stocks on South Africa's bourse closed in the red. The main contributor to the fall was a poor performance by mining stocks.
One stock that performed well was Steinhoff. It rallied strongly after announcing a deal to take over Pepkor.
Let's take a closer look at what went on…
Steinhoff closed 4.5% higher
The JSE ended in negative territory under the weight of some minin... ››› more
Earlier today, Steinhoff International Holdings announced its decision to buy the majority of Pepkor. The deal is valued at R68.2 billion.
Shares in Steinhoff soared on the news as investors greeted the news well.
Let's take a closer look at what's going on…
Steinhoff will own 92% of Pepkor
Steinhoff [JSE:SHF] announced a R68.2 billion deal to purchase “a 92% stake in clothing r... ››› more
This afternoon, Steinhoff International released its results for the full-year to the end of June.
The furniture company reported a large growth in profits for the year. Steinhoff also posted a substantial rise in revenue. And it nearly doubled its dividend pay-out for the year.
Let's take a closer look at what Steinhoff revealed…
A weaker rand benefitted Steinhoff
Steinhoff [JSE:... ››› more
Last week, the European Central Bank Chief, Mario Draghi took measures to jumpstart the European economy.
He announced that the European Central Bank (ECB) would actually charge banks to deposit money with it. And it's reduced its lending rate to a new record low of just 0.15%.
His reasoning for all this?
He wants to get the banks to lend more money and encourage people in Europe to spend m... ››› more
“Francois, my stock has been dropping in the past month, what should I do?”.
Stocks crashing are an inevitable part of investing... It's a risk you take every day that you're invested in the market.
It's what you do when this happens will have a huge effect your long-term investing success…
But before I tell you what you SHOULD do when your stock crashes let's first look at what you... ››› more
This afternoon, Steinhoff International Holdings Ltd released its full year results. And the results were good. The market reacted very well to the financials, with Steinhoff's share price soaring. Let's delve a bit deeper and see what led to such good results…
Steinhoff International “reported a 25% increase in earnings,” reports Fin24. The company benefitted from the weak rand and a boos... ››› more
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