Mr Market gets depressed on Steinhoff – an opportunity for investors
Over the years, I've occupied a front row seat to the amazing Steinhoff story and look forward to another instalment later this week when meeting with CEO Markus Jooste. We first met through a shared passion for thoroughbreds which developed into a warm friendship.
Jooste is one of those rare people whose brain works faster than the rest of humanity because it is able to apply binary logic to pretty much every complex issue. So, for me, it was no surprise to see Steinhoff's statement on Friday informing shareholders that authorities had visited its offices in Germany to attach documents relating to a tax probe. That's Jooste's way. Tell it straight and fast.
What did surprise me, though, was a 10% reverse in Steinhoff's share price as Mr Market panicked at the news. Especially as it came ahead of yesterday's formal transfer of the group's primary listing to the Frankfurt Stock Exchange. Quizzed on the matter by Reuters, Jooste said now that he is fully informed on the facts, he is happy the issue being investigated will have "no material effect whatsoever….these things happen from time to time with big corporates."
Anyone who knows the man would interpret that as a signal to buy some newly depressed Steinhoff shares. Apart from his other attributes, Jooste is something of a tax fundi. As a recently qualified chartered accountant, Jooste did his then obligatory National Service at SARS.