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Morning Market Scoop 8 November 2018

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Barry Dumas
Moring-market-scoop

Morning Market Scoop 8 November 2018

In our morning market scoop:

  • The scandal that shocked SA and possibly the biggest case of corporate fraud in SA business. Steinhoff International Holdings(SNH) hands overs reports to the authorities.
  • Pepkor fails In its attempts to seek restraint of trade provisions against the founders of Mr Tekkie.

"Alice in Chains, Man in a Box" seems appropriate this morning, doesn't it Mr Jooste?

 

Steinhoff-reported-to-police-Markus-Jooste-Accounting-fraud

“Down the RABBIT Hole”

What’s the scoop? Steinhoff report to police

Steinhoff International Holdings (SNH) has handed over information to the SA authorities about a set of transactions involving Markus Jooste and three more former execs. These executives may also have contributed to the now famous accounting crises which sent the stock price tumbling, whipping out 96% of its market value.

  • The details of the involved executives came to light thanks to the ongoing PWCs forensic investigations into the matter. The forensic report into the accounts is due to be finalized by the end of this year.

The big picture The scandal that shocked SA and possibly the biggest case of corporate fraud in SA business ever has dominated news for almost over a year now. There have been significant financial losses not only by institutional investors and leading business personalities but also by millions of ordinary people.

What does all this mean for me?

  • If you were unfortunately affected by the Steinhoff scandal, you might find solace in the fact that the perpetrators will be brought to justice. Also, as an investor let this be a clear reminder not to have all your eggs in one basket.

 

Pepkor-and-Tekkie-Town

“Run Like the wind”

What’s the scoop? Mr Tekkie vs Pepkor

Things just can’t look up for the Steinhoff stall as Pepkor, formerly known as Steinhoff Africa Retail has failed in its attempts to seek restraint of trade provisions against the founders of Mr Tekkie.

  • Tekkie founders were elated to announce that Steinhoff-controlled Pepkor failed in their application by restraining five of Mr. Tekkie’s founders from any involvement in retail.

The big picture Mr Tekkie, a start-up business was founded by members of Tekkie Town which was sold to Steinhoff in 2016. Tekkie Town currently forms part of Steinhoff's subsidiary, Pepkor. The company also brought an application requesting that the court order the name Mr Tekkie not to be used.

What does all this mean for me?

  • If you are not a shareholder then it won’t materially affect your life besides you now have more options on where to buy Tekkies.

#Trade Wars Tip

  • Avoid a margin call at all cost!

JOIN #TradeWars.

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