Still a bargain – Steinhoff International Holdings NV

After losing almost 90% of its value at the worst on Friday the 8th – from 3€ to 0.37€, Steinhoff International Holdings NV is coming back to 0.6€ level.

steinhoff international holding share price
Credits : Google Finance

At HouseWifeTrading.com, we decided to bet on a recovery on the Steinhoff International Holding Stock. Here is why.

Steinhoff International Holding NV is seating on solid assets :

Despite the solid assets Steinhoff International Holding NV is seating on, there is still a big debt to be covered. However, we are in a case where Assets value > Debt and this is without yet accounting earnings. We understand that based on accusation of fraud, it’s difficult to assess the quality of the earnings, but it still feels like there is value.

Rand EUR USD
Assets Subsidiary 65,000,000,000 4,052,369,077 4,745,000,000
Assets Holding 93,032,000,000 5,800,000,000 6,791,336,000
Total debt holding 104,000,000,000 6,483,790,524 7,592,000,000
Net Debt 54,032,000,000 3,368,578,554 3,944,336,000
Current Ratio 1.52 1.52 1.52

A solid interim CEO to save his company from bankruptcy

Supervisory board Chairman Christo Wiese will take the interim CEO role. There are couple of good news here. 

The first one, is that Christo Wiese owns approximately 23% of Steinhoff International Holding NV. Christo Wiese’s net worth is estimated at $6.8 billion. But because of the accounting scandal he lost approx $2.8 billion in net worth. Therefore he must be quite motivated to save Steinhoff International Holding NV.

The second one, is that Christo Wiese, made is wealth in retail. So he knows the industry inside out.

The last good news with Christo Wiese back on board is that he is already acting and trying to save the ship. Africa Billionaire #4, trying to stabilize the embattled retailer, is already negotiating a standstill agreement on a €1.5 billion margin loan under which banks would suspend the sale of stock until next year.

Steinhoff International Holding NV is operating strong brands

Steinhoff International Holding NV, it’s a lot of Brands, in UK, Europe, and Africa. As to be seen on their 2016 annual report.

Steinhoff International Holding NV - Investor relations
Credits : Steinhoff International Holding NV – Investor relations

A high speculative move

This is a high speculative move – the situation at Steinhoff International Holding NV is not good. But with such an interim CEO with strong ownership and track record, as well as with the asset & brand value of it’s subsidiaries, it feels that there is still value behind the Steinhoff International Holding NV name.

KAP, PSG groups really suffered from the scandal, even though they are not yet proven to be involved in the fraud. Maybe some potential to explore.

Please only consider this investment if you can afford to lose it.

None of the above is guaranteed to be correct & accurate. Please make your own research for your personal trading. HousewifeTrading is not responsible for any loss occurred following one of our trade. If you disagree with this policy, you are asked to leave this website immediately.

In case you find something inaccurate please let us know as early as possible in the comment section. We will do our best to correct it. 

 

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