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Online Share Trading

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Very interesting things going on at Steinhoff

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dimitrius
Regular Contributor
I see that Jannie Mouton from PSG just bought R24 million worth of single stock futures, and another 8 directors bought R480 mil worth last week. Looks like their could be some nice surprises on the way. I bought last week. Anyone else holding onto Steinhoff? Almost 50% of their revenues are Euro and Aussie dollar based. Nice hedge against the Runt.
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20 REPLIES 20
DCTrader
Super Contributor
Dude, you about 1 week to late after the news... it was making headlines across the JSE and Summit tv last week already...
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dimitrius
Regular Contributor
Nope. I saw the R480 mil ssf buy last week. So I'm up to date. But only saw Jannie Mouton's buy yesterday in sens. Didn't realise that he was part of the R480 mil buy.
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analyst
Frequent Contributor
It's not too late, with that ammount of stock being bought, the directors are obviuosly very confident.
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TraderSteve
Frequent Contributor
Where do you find out that a specific director (Jannie Mouton) has bought 480m worth of SSF?
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TraderSteve
Frequent Contributor
Sorry R24m worth of SSF, not R480m
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Not applicable
Could somebody tell me (excuse my ignorance) In the event of the stock price rising 10% and the Steinhoff directors then closing there SSF position and taking profit - where does that profit come from ? There must be winners and losers in this trade... I would like to know who the losers are.
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dimitrius
Regular Contributor
Jannie Mouton was listed as the non-exec director that bought the futures contracts in the sens announcement. They always list the director's name in the sens, whether exec or non-exec.
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Not applicable
U may remember that Jooste from Steinhoff was buying PSG with big money about a month ago. So the SHF director is buying PSG and PSG director is buying SHF - it sounds insiderish to me...
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dimitrius
Regular Contributor
Interesting. I didn't know that Mamon. A bit of incestuous dealing going on there. But I think the Mouton buy is results driven. He's not a stupid man.
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Not applicable
U can check kwagga's post on the PSG forum - 31 May - if you wanna follow the plot
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TraderSteve
Frequent Contributor
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platsak
Super Contributor
If this were a confidence boosting trick I fell for it hook line and ......
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dimitrius
Regular Contributor
platsak, I doubt very much this is a confidence boosting trick. If you're worried just because of one or two days of loss on the share price, then you should rather trade your charts. Steinhoff is a buy on fundamentals.
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Not applicable
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dimitrius
Regular Contributor
Up, normally with futures contracts, the losers are on the other side of that trade. If they don't make a return on the contracts they bought, that is. But then again, I'm not a pro on futures contracts, so maybe Simon can put it more eloquently than I can. I prefer to stick to common stock. Less risk.
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SimonPB
Valued Contributor
this comes back to the zero sum game. This says that if I make 10 bucks somebody has to loose the same amount. BUT in truth as market increase over time this is not completely correct. I could by at 10, sell at 15, that person sells at 20 etc. The point is that the value of the market is not finite.

As to where the money (profit) comes from on the SSF. Simple, you buy one contract, that's equal to 100 shares. Lets say the shares trade at R1.00, so the value of the trade is R100. BUT becuase you've gone the SSF route instead of paying R100 you only pay R15, but the market maker actually owns the 100 shares. So if share price goes to R1.15 the 100 shares have increased in value by R15, and hence you have made R15 (100%) profit.
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dimitrius
Regular Contributor
Don't forget to tell Up that it can also go the other way. You could end up losing the R15 altogether, far more easily than if you held the shares.
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SimonPB
Valued Contributor
well you could loose more then R15 (in other words more then 100%). If the share crashed to say 80c, your loss is R20 on a R15 trade.
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ANDY26
Contributor
Does this mean Steinhoff is a good ssf buy? Is this RR from Bryanston Hign ?
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