In an environment of negative sentiment, mispricing may create opportunities.
In the aftermath of Steinhoff’s spectacular meltdown, there have been various examples of local firms whose share prices have fallen significantly more than one would have expected after even the slightest bit of bad news.
There are numerous examples of companies that have experienced sharp share price declines over the past 16 months – even if only temporarily – including Capitec, EOH, Tongaat Hulett, Aspen and the Resilient Group.Speaking at the Investment Forum 2019, Shaun le Roux, portfolio manager at PSG Asset Management, said that in an overall environment of terrible sentiment, negative headlines can have a pronounced impact on share prices.
“I think there is a huge opportunity that [this] presents to investors who have a long-term view and are doing their homework,” says Wood.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Financial regulator clears 3 accounts for Steinhoff insider tradingThe Financial Sector Conduct Authority says it will continue probing other accounts for potential insider trading prior to the retailer's share price collapse in December 2017.
Read more »
FSCA finds no evidence of insider trading worth R418m against Steinhoff | IOL Business ReportThe FSCA said that it had wrapped up a further three insider trading investigations into the Steinhoff International shares.
Read more »
‘No evidence’ of insider trading ahead of Steinhoff’s collapseThe Financial Sector Conduct Authority says it has found no evidence of insider trading in the retailer’s shares, although it still has a few trading accounts to check
Read more »
FSCA finds no evidence of insider trading worth R418m against SteinhoffThis brings the total number of accounts investigated for insider trading with no adverse finding to a total of 56.
Read more »
FSCA finds no proof of insider trading at SteinhoffBloomberg previously reported that former CEO Markus Jooste tipped friends to sell off the company’s shares days before the stock crashed.
Read more »
Steinhoff plans to give Conforama funders enhanced rightsThe financiers will be allowed to appoint two independent directors to the French unit’s board
Read more »
Steinhoff looking for billions of rands in capital injectionRetailer Steinhoff on Monday announced key terms for its French unit Conforama’s plan to raise 316 million euros (R5.6-billion) to shore up its finances after sales fell and costs rose. Steinhoff said the financing included the issue of warrants in an amount equal to 49.9% of Conforama’s shares to the providers of cash, giving the financiers enhanced governance rights and allowing them to appoint two independent directors to Conforama’s board.
Read more »
Steinhoff open to ‘negotiated settlements’Company will defend against claims but will consider alternative approaches to concluding claims
Read more »
Steinhoff seeks claimants to reveal identities to negotiate settlementsFormer chairman and top shareholder Christo Wiese had said last month he is open to negotiations over a $4 billion claim against the company, days after it revealed the scale of a devastating accounting fraud.
Read more »