Steinhoff had a very pleasing trading update stating that headline earnings per share look to be up between 40% and 50% compared to the comparative 6 months ended 31 December 2010. This was due to the inclusion of Conforama, currency swings in their favour and earnings earned on the JD Group investment. The company made 108.6c in the comparable period. So the middle of the range 45% will gives us around 157.5c. The share trades at R26.77 and looking very cheap if we annualize this half. Hence the stock shot up 4.6% yesterday. But why is the stock so cheap? This growth has not all been organic would be my opinion but more by acquisition. We will have to take a closer look when the full results release comes out.