Last week, I had a feeling of déjá vu as I watched Steinhoff's share price plummet. It took me back to August 2014, when African Bank crashed out of the JSE. Steinhoff, having been quite the darling of the market, caused a storm when the CEO, Markus Jooste, resigned the night before the company's results were to be released. The results presentation was postponed and the share price nosedived. I was concerned by the number of people who wanted to know whether they should buy Steinhoff's falling shares. The first question I had was: why catch a falling knife? At that point, and even now, buying in the hope of a recovery would be nothing but a gamble, simply because there isn't enough information to allow anyone to make an informed decision. We've all heard that buying low and selling high is sound investment advice, but it is advice that must be followed with care. If in doubt, it helps to have a checklist to see whether a share is good to buy or you should hold out. There are also a...
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