Wednesday, October 17, 2007

Wednesday Political Soup: Edition 2

Do ya think we are suckers ?

The vacuum of ideas that is the Labour Party Front bench never ceases to underwhelm.

The spectre of The National Party selling state assets to enable them to return a decent amount of capital to investors, in this case the taxpayer, is a case in point.

In recent days in the house the Labour Sisterhood takes every opportunity to attack the opposition that they will take the country "back to the bad old days" of the 1990s when the market ruled and greed was good.

Under performing taxpayer assets should be sold and even Labour agrees because they have sold and continue to sell taxpayer assets to this day. They forget that they started the ball rolling in the 1980s.

When the National Party suggest market led policy though Labour screams capitalist pig but when Labour sell taxpayer assets it is because "we can put the proceeds into better performing assets to get a better return", so said Trevor "looks like a duck, must be a duck" Mallard in Parliament today.

The suggestion by Bill English that schools might be financed and built by the private sector sends Steve "smarmy from Palmy" Mahary apoplectic but the financing of hundreds of private schools and state funded handouts to "early childhood centres has smarmy hiding his large head in a dark place indeed.

The crowning jewel is the kerfuffle over the so-called cap on doctors fees.

National wanted to remove the "cap" and let competition decide but Labour and the shrill left from the socialist pulpit decried that as crass and cruel.

The funny part of this is that there really isn't a cap under Labour.

Doctors are allowed to increase their rates by any amount they see fit. Increases are put before a board and so far none have been disallowed.

The only difference between National's proposal and Labour's current regime is that Labour have employed another platoon of bureaucrats to administer the board.

In the Labour heartland of Glenfield, one of the poorest areas of Auckland's North Shore, doctors are charging $60 a time. Not the less than 20 bucks that the hypocrites from Labour have lathered themselves up about.

The song is getting tired girlie's put on another MP3.


Cullen's Dogma eats its Tail

In the light of Australian Conservative leader John Howard promising major tax cuts next year for all Australians, Minister of Finance in New Zealand Micheal"Ive got your money and you ain't getting it back unless its through welfare" Cullen continues to prevaricate and prostrate himself into a frenzied soap-less lather over when and who is going to get a tax cut before next years big buy up election.

Cullen continues to mislead and treat kiwis like mushrooms, that an across the board tax cut wont help the "needy" and will help those "rich" instead, that is those on incomes over $40,000.00 dollars.

It isn't true to say that those that earn more are better off when taxes are cut because proportionally they pay more tax as the tax rates go up. They are actually penalised . The very opposite of what this pathetic socialist monetary historian would have us believe.

If you were to do what Howard has done though and make the first $10000.00 and more in the future, dollars tax free and cut the top tax rates you benefit everyone equally and you help out those on low incomes the most PLUS, wait for it, you give everyone the incentive to do better and work harder because the top tax rates are lower!

Sadly Cullen's dogma wont let him see reason and because he wants control, his tax cuts come in the form of welfare through his oxymoronic titled "working for Families" welfare package.

Local Hero's

Finally, the local council elections last week across New Zealand saw a huge move to the conservatives.

In Auckland, my local patch, the face for radio, Dick "Serial Killer" Hubbard, was sunk by the aptly named "Banksie".

Banksie has promised to stem Dick's out of control spending, when at one silly stage ratepayers were forking out 70,000 bucks for Somali families to call back home to see if elections were going OK.

That is not a joke.

Hubbard was a Labour backed lackey frequently seen on the lap of Helen Clark, our fearless Prime minister.

On Auckland's North Shore, where I live, George "If you cant afford increased rates then bugger off somewhere else" Wood was ousted for his lavish spending on overseas travel, a $40,000.00 council chocolate biscuit bill and a fleet of council vehicles so large stacked end to end would reach to the moon and land on that expensive white elephant the North Shore Busway, should a small wind blow.

Elsewhere, noted lefties and local radio racists Willie "one eyed" Jackson and John "Good Cop" Tamihere where spectacular failures in their quests to get the mayoral chains.

Jackson was heard to say on radio the next day that uncontested "Maoori Seats should be brought in so people like him could represent "their" people.

South Aucklanders were the clear winners for Little Willies absence.


Greed is Good


Emerson, NZ Herald, Thursday October 11 2007



C Darren Rickard 2007

Greed is Bad: Geneva Finance Folds

Geneva Finance, the latest New Zealand Finance company to go belly up has me slightly barking.

I say this because while directors and presumably trustees of the company have either been silent and or untruthful about matters unfolding over the last several weeks as their Standard and Poor's credit rating slipped from B+ to B- and now a D.

My first beef concerns the company and company trustee failing to adequately inform investors and prospective investors in the company, that the condition of the company was dire.

Investors and business media were repeatedly told by those in the know that Geneva was "doing fine" and they were able to trade themselves out of difficulties.

My take on the company at the this time was more negative than management and the writing really was on the wall when confusion reigned about a week ago when mainstream media were alerted to serious problems by a customer of Geneva that was told that they were not processing any further loans.

When questioned by several media about whether loans had been suspended it was at first denied then days latter validated.

Even at that point Geneva Finance was still taking deposits from investors and continued to do so until Monday, when the company announced they had defaulted on interest payments to investors.

My second beef comes to the point that directors of Geneva were accepting deposits from investors when they knew the company was in deep trouble.

Going further to this, the trustee, who is supposed to look out for investors when difficulties such as this arise has been strangely silent all this time.

Clearly the conduct of the directors of Geneva Finance and the Trustee has been less than adequate and serious questions put to them need to be answered.

The company is now going to ask investors in Geneva that they allow a moratorium be agreed to where the company will cease payments to investors for 6 months while they "restructure" the company.

Mr Riley said the plan would allow Geneva to stabilise its position, focus on negotiating a significant debt and equity transaction that would secure the long-term future of the company."

Shaun Riley, the chief executive stated:

The company had needed to "act quickly and prudently in the interests of our investors", he told Radio New Zealand.

"We're extremely confident that the period of the moratorium will be enough for us to put the company back into that stable position, secure that significant debt and equity transaction and really secure the long-term future of the company."


This is interesting language, it was also used over the last few weeks by the board to explain to investors that the company was doing OK.

Geneva Finance is owned by Finance Investments Holdings, which in turn is half owned by three Auckland property developers, Peter Francis, Gary Hitchcock and Nigel Burton.

As well as the 50 per cent holding, the trio own $7.1 million in preference shares, ranking above ordinary shares, and equivalent to another 35 per cent of the company's total capital.

Francis was a high profile "financier" in the 1980s and was chief executive of the failed Chase Corp, a top 10 company on the stock exchange in the mid-1980s which posted New Zealands biggest ever corporate loss before going belly up in the aftermath of the October 1987 crash.

Ironically it was only a day before the 20th anniversary of the crash that Geneva folded its tent.

Directors were not upfront with media and failed to fully inform investors in a prudent and sufficiently quick time frame.

The message is clear to me though.

It looks like management of Geneva Finance are simply trying to stave off the inevitable.

All the language and slack attitude of directors and the trustee points to this and directors so far haven't inspired the confidence in the market for us to think that they will come out with a positive conclusion in 6 months time.


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Fishpond


c Share Investor 2007





Tuesday, October 16, 2007

Sky City Entertainment Group Ltd: Opposition to Takeover

As you may or may not know, Sky City Entertainment Group [SKC.NZ] is under a possible takeover offer.

Much has been written about the possibility of this happening over the last few weeks including a reasonable bit by myself.

You may also know that I don't want to part with my shares, I am a long-term holder and the possibility of a sale doesn't excite me as it appears to have excited some.

I also believe a possible bidder will try and grab the company for a bargain basement price, the "above 6 bucks at share" price has been mentioned many times by a multitude of market commentators.

I personally wouldn't be interested in such a valuation as long term it is worth much more than that.

It is a virtual monopoly wherever it operates and a substantial premium above 6 bucks needs to be paid to take control.

I would ask any Sky City Shareholders to contact me, Darren Rickard at shareinvestornz@gmail.com if they are interested in getting a group together to oppose any definite sale/and or stand firm for a better offer.

Would be grateful for any feedback.


Disclosure: I own SKC shares in the Share Investor Portfolio


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c Share Investor 2007

Sunday, October 14, 2007

Global Warming: Power to the People

The grab for more taxes by the Labour Government increased this week.

In the week where a NZ$8.7 billion dollar surplus for the last financial year was announced, it seems lunacy that the nanny state would want to steal even more of your money right out of your pocket.

But yes siree Darryl and Sharon New Zealand, you are about to be right royally frisked again because the power you are using is not "sustainable" and therefore you will be taxed to pay for the damage they say you are doing to the environment because of it.

You see the Labour Governments latest tax is being foisted upon us in the form of "fear" taxes, new taxes that will come about because of the left and Greens adherence to the lunatic man made "global warming" lie.

I'm not here to argue the merits of the man made "global warming" movement because quite frankly it has none.

The "science" on which it is based is severely flawed despite what the leftist politicians, green freaks and the self proclaimed inventor of the Internet and Nobel Prize winner, Al "I'm running for President " Gore tells you.

For goodness sake do some objective reading people!

The sinister undertone of all this green washing from the GW proponents is that it is a push for imbecile individual knuckle draggers like Gore to make money out of the fear and lies that they are spreading and for Governments around the world to raise taxes.

It just so happens that Helen Clarke, the Prime Misinster of New Zealand and her Sisterhood, through the bequest of Jenette Fitzsimons from the Green Party, because they hold the balance of power, seem to be at the vanguard of this movement to tax New Zealanders for living their normal lives.

New Zealand is going to have to rely on wind power and solar energy to power our economy, according to David Parker, the Chief idiot and slopey fore headed one charged to drive Kiwis back to the middle ages.

According to Parker, we need to be driving electric vehicles, using public transport and doing away with old appliances.

Jenette Fitzsimons goes a step further and wants the size of large screen TVs restricted.

Remember these are the people who like to tell us what to do and have changed laws to get us to eat, drink, smoke,watch and listen to what they want us to.

Restricting our right to parent by removing our ability to lightly smack indolent children its another moral crime they are guilty of.

Certainly, Jenette Fitzsimions lack of morals and boundaries also crosses into the financial sphere.

We have our very own New Zealand Al Gore in Fitzsimons.

While Gore is making hundreds of millions of dollars from his ownership of a fund that puts its money into the carbon free environment that he is slavishly advocating, our little Jenette is doing similar stuff here in NZ.

You see Fitzsimons is the 6th largest shareholder in a company called Windflow Technologies, a company that is developing the very technology that she advocates for and has changed New Zealand laws to benefit her company.

Like Gore, Fitzsimons doesn't make her biases clear when discussing the mushrooming of these visual polluters all over our countryside. We cant have Shania Twain having her house show on a ridge near Queenstown eh Jenette, but we can have these monstrosities covering the nation just so you can get rich from your shareholding in WT.

The Green taxes that Fitzsimons and the Clark sisterhood want to impinge on Kiwi individuals isn't about "saving the planet" or reducing pollution.

It is actually about wealthy green tinged individuals making money, state control and raising taxes to re-distribute them to those individuals too lazy to work and to those 3rd world countries who form a bloc in the UN, that want to lay their hands on Western nations money because they have successfully developed their economies and the 3rd world hasn't.

Aunty Helen, Fitzsimons and their lap dog David Parker clearly want to punish those individuals in society that have made a success of their lives through hard work and innovation and NZ as a whole.

Of course, that is the way of socialism an ism that they all slavishly follow.

The lack of a spiritual and religious base for these 3 collectives and their mates is being fulfilled by the new religion of worshipping at the foot of the Global Warming crusade.

Like all religions the GW movement is based on fairy tales, superstition, fear, greed and jealousy and it is going to end in confrontation.

The sensible among us mustn't be silent against the bias of left wing media that would have you believe that GW is an issue. It clearly isn't.

Let the war begin.


c Darren Rickard 2007