WORLDVIEW: Steinhoff’s three-pronged appeal includes immunity to Amazon-effect

South African global champion Steinhoff International is being overlooked by investors. That offers a great opportunity to those who seek a long-term bet. Here's why.

Its December 2015 primary stock market listing switch to Frankfurt attracted lots of initial interest, driving the share price to a peak of R95. But a year ago it started sliding back into the mid-R60s a year ago, hitting the stock market's equivalent of the doldrums – a band in the equatorial Atlantic Ocean where little wind blew, becalming sailing ships of yore.

This share price stagnation occurred despite a solid set of financial results for the half year to end March (organic sales up 9%; organic EBIT up 21%) showing continued growth, the underlying business with 413 new stores taking the total to over 12,000 in 30 countries.

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