Discovery out, Steinhoff in. Personally, I am super impressed with Steinhoff's results, since 2 years ago everyone was super concerned about their European strategy, given that they had no experience in that kind of retail distribution field. Now their EU operations account for 37% of turnover, wow. Earnings are down, but under the circumstances, so what. Steinhoff experiencing a bit of a sell off lately, I think this is looking very promising
Talking head term for companies selling items that consumers can postpone until their finances are in better shape for example funiture. Non discretionary spending is items that the consumer does not really have a choice in buying like basic foodstuffs. As I am clearly not the expert maybe we can ask our resident talking head to elaborate.
I also like Steinhoff but for some reason it has always traded close to its NAV and with low PE. What is reason for that? I read a article last year where they ask the above questions and concluded that market might not believe in management abilities but surely they have proven the market wrong with their results in a tough economic enviroment?