Steinhoff: I think I bought the bottom
Back in December 2017 the share price of this huge conglomerate of retail stores crashed. I posted about it in April 2018. Not sure if many people are interested (and this is one more reason why this is good, few people were interested when Gamestop was trading at $3, many were when it was at $300).
The direction got accused of fraud and for some magical reason investors thought this meant the whole giant, which has so many popular stores, was worth $0. I'm not going to make a whole analysis here, but to me it is worth more than zero. The price dropped by more than 99% I think it is ridiculous. Also they might have gotten hurt by covid, bad timing, they sell mostly non essentials.
They are releasing earnings in 1 month, and they might not be terrible.
There are some optimistic news:
- PEPCO earnings are up 46%,
- South African retailer Pepkor Holdings reported on Friday a 115.2% jump in annual earnings, rebounding from a low base in 2020 when it was affected by lockdown restrictions.
- I think they are settling their fraud issues with the help of Trevo Capital
- People are still going to their stores, and I think will continue to (because the stores offer value and because the covid panic is slowly fading away)
- Omicron has been said to lead to 70% less hospitalisations as Delta, it's as if viruses did not evolve to kill their hosts on purpose so they may go extinct and I was right all along
On the negative side they are very reliant on what is going on in South Africa, and it's not looking good. Which might be good for SA stocks in the long term... Short term people panic sell and long term look at Argentina, 20s Germany stock market, Zimbabwe...
For those into that, there is RSI divergence on the rounded bottom on the monthly chart:
I bought at 10c, so not the exact bottom, but when & if the price gets to $2, 10c will basically be the bottom.
The direction got accused of fraud and for some magical reason investors thought this meant the whole giant, which has so many popular stores, was worth $0. I'm not going to make a whole analysis here, but to me it is worth more than zero. The price dropped by more than 99% I think it is ridiculous. Also they might have gotten hurt by covid, bad timing, they sell mostly non essentials.
They are releasing earnings in 1 month, and they might not be terrible.
There are some optimistic news:
- PEPCO earnings are up 46%,
- South African retailer Pepkor Holdings reported on Friday a 115.2% jump in annual earnings, rebounding from a low base in 2020 when it was affected by lockdown restrictions.
- I think they are settling their fraud issues with the help of Trevo Capital
- People are still going to their stores, and I think will continue to (because the stores offer value and because the covid panic is slowly fading away)
- Omicron has been said to lead to 70% less hospitalisations as Delta, it's as if viruses did not evolve to kill their hosts on purpose so they may go extinct and I was right all along
On the negative side they are very reliant on what is going on in South Africa, and it's not looking good. Which might be good for SA stocks in the long term... Short term people panic sell and long term look at Argentina, 20s Germany stock market, Zimbabwe...
For those into that, there is RSI divergence on the rounded bottom on the monthly chart:
I bought at 10c, so not the exact bottom, but when & if the price gets to $2, 10c will basically be the bottom.
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