It really seems to be a case of "familiarity breeds contempt" regarding investors and Steinhoff Africa (Star).The newly listed share has defied the generally weaker market sentiment and has steadily moved up from its placing price of R20.50 to more than R23. At this level, it’s on a fairly demanding forward price:earnings rating of more than 22 times. Investors are obviously delighted with the opportunity to invest in an Africawide retail story and are certainly not discouraged by the possibility of fallout from the European legal battles in which parent Steinhoff is involved. The performance of the Steinhoff share price over the past three months has been particularly grim. It is down almost 20% and, at about R59, is trading close to a three-year low. No doubt the legal battle with a former joint partner will get much airplay over the next few months and must dull any hopes of a sustained recovery in the share price. The contrast between the performance of the two shares may also r...
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