March 12th, 2021 | 08:56 CET
Steinhoff, SKRR, Aurelius - Watch out: Stockpickers, something is happening here!
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The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
STEINHOFF INTERNATIONAL - timetable for debt relief concretized
Since the accounting scandal in 2017, the German-South African retail Group Steinhoff has been severely battered. The share is trading in the cents range, currently at EUR 0.10, which means the Company is worth around EUR 420 million. Steinhoff was for a long time the supposed number 2 in the European furniture industry and was known in Germany for the Poco furniture chain. Recently, there has been progress to settle the accounting scandal through a settlement.
Earlier this month, the relevant German prosecutor's office in Oldenburg issued charges against 3 former managers of the Group for balance sheet manipulation. They are accused of carrying out sham transactions and presenting inflated book profits between July 2011 and January 2015. A total of around EUR 2.3 billion is at stake. The public prosecutor's office is convinced that the transactions did not occur with third parties as communicated by the Group, but with companies close to the Group. As a result, the alleged fraud remained undetected for a long time.
While a lot of energy is going into working off legacy issues, which should give the Group a fresh start, CEO De Klerk also recently revealed concrete growth plans. The European operations, grouped under Pepco and wholly-owned by Steinhoff, are to be reduced by 25% - 30% by the end of June. The Australian subsidiary Fantastic Furniture is to be listed on the stock exchange by the end of 2021. The two transactions are intended to reduce the Group's debt and raise the necessary funds for the cash component in a settlement. In addition, shares in the South African Group Pepkor, in which Steinhoff currently holds 68%, are to be used to satisfy creditors' claims. There is still fog in the air, but on the horizon, a solution is emerging in many areas, making a restructuring of Steinhoff seem realistic. Speculative investors should put a few pieces in their portfolio and wait for the summer.
SKRR EXPLORATION INC - eyeing the jackpot
The gold exploration Company SKRR focuses on the exploration of the Trans-Hudson Corridor in the Canadian province of Saskatchewan. The Company has an experienced team that brings many years of experience in the region. SKRR believes that the Trans-Hudson Corridor is geologically similar to the Abitibi Gold Belt. The Abitibi Gold Belt, which encompasses the Ontario-Quebec border, has historically produced approximately 200 million ounces of gold. The province of Saskatchewan is one of the leading mining regions in the world.
SKRR owns 5 projects in the mentioned area, partly in the vicinity of producing mines. The focus is currently on the Irving/Leland project, which covers more than 23,500 hectares and is located less than 10km from the producing Seabee Gold Mine of competitor SKRR Mining. On the project, SKRR has already completed a 9-hole, 1,341-meter drill program and released results from 3 holes back in February, with the release of the remaining results expected soon.
SKRR is still in the early stages of the Company's history. The important thing moving forward is to get more clarity on the mineralization in drill programs. If there is even a hint of potential in the under-explored Trans-Hudson Corridor, the stock faces a re-rating. At around CAD 0.24, SKKR is worth only CAD 8.8 million on the stock market.
AURELIUS EQUITY OPPORTUNITIES - with deal flow and transparency to success
AURELIUS Equity Opportunities SE & Co. KGaA is the exchange-traded investment arm of the Aurelius Group. The beginnings of the Group date back to 2006 and lie in the area of turnaround investments in Germany. Today, the Group is an international multi-asset manager that also provides growth capital and alternative financing as well as opportunistically investing in real estate.
Market participants are always pleased when profits can be made in the form of disposals or IPOs. But acquisitions and the associated potential can also cause investors' hearts to beat faster. CEO Matthias Täubl had several pieces of good news in store for shareholders this week. Täubl anticipates significantly more transactions this year than in 2020 and expects a success report before the end of the first quarter.
In addition, the Company reported that it would cancel repurchased shares amounting to 3.16% of the share capital, which will increase the value per share. Täubl also reiterated that the Company would continue to consistently pursue the path of more transparent corporate communications that it embarked on last year. Deal flow and transparency are the fodder for further share price increases. The Company is currently valued at around EUR 750 million on the stock market at prices of around EUR 25. In 2017, the share price was still a good EUR 60.
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