Steinhoff hit my price target and I am very worried for it now!
We saw a major drop of 44% with Steinhoff to just 90cents and Its market capitalisation lost as much as R3bn in the fall from R6.9b yesterday
Steinhoff is in troubled waters with a debt of R185 billion.
There is a deal where if Shareholders will agree, they will end up owning 20% of the company.
The Creditors will own the rest.
The problem is the company will no longer be listed on the stock exchange.
From my experience when a company goes from listed to private it means a few things.
1. Liquidity issues
Volume will be low where you might not be able to exit a position with a rightful buyer or sell
2. lack of transparency
This leads to uncertainty for the business as shares holders won't have the transparent information like they would with a public company.
3. Valuation
With a company listed privately, this can lead to investors pricing in the business rather than shareholders. This can result in slower performance in the price of the share.
4. Market perception
The fact that a company has been delisted can be seen as a negative development by some investors, who may view it as a sign of financial distress or poor management. This can affect the market's perception of the company and its shares, which can in turn affect the value of your investment.
I would not touch Steinhoff with even my pocket money for sweets at this stage.
Trade well, live free.
Timon
MATI Trader
Steinhoff is in troubled waters with a debt of R185 billion.
There is a deal where if Shareholders will agree, they will end up owning 20% of the company.
The Creditors will own the rest.
The problem is the company will no longer be listed on the stock exchange.
From my experience when a company goes from listed to private it means a few things.
1. Liquidity issues
Volume will be low where you might not be able to exit a position with a rightful buyer or sell
2. lack of transparency
This leads to uncertainty for the business as shares holders won't have the transparent information like they would with a public company.
3. Valuation
With a company listed privately, this can lead to investors pricing in the business rather than shareholders. This can result in slower performance in the price of the share.
4. Market perception
The fact that a company has been delisted can be seen as a negative development by some investors, who may view it as a sign of financial distress or poor management. This can affect the market's perception of the company and its shares, which can in turn affect the value of your investment.
I would not touch Steinhoff with even my pocket money for sweets at this stage.
Trade well, live free.
Timon
MATI Trader
✅ Facebook:
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
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