Saturday, September 18, 2010

Police not to Blame for fleeing criminals death

News reports intimating that criminals who sped away from police and two died as a result of their stupidity, are the victims of errant police is yet another story from the left slanted in the wrong direction.

While nobody deserves to die, the driver of the car that sped away from police and those in the car must take the full blame and for two of them that blame ended in death.

No great loss at all.

The driver and the occupants of the car were lucky that innocent people were not killed as a result of their decision to boot it. Innocent people were certainly put at risk by their failure to think before they acted.

Police need to chase when appropriate otherwise we live a a lawless country where idiots like these rule over the good, law abiding citizens that most of us are.

Time to support the cops.





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Allan Hubbard Supporters: Conflict of Interest

If I have a possible conflict of interest when writing on the subject of investing I always declare my financial interest, if any.

You have to be upfront and direct with people otherwise they wont take you seriously if they subsequently find out you write with a fork typewriter - ask David Garrett.

With Allan Hubbard and his collapsed Aorangi Securities and Hubbard Management Funds, which are now under statutory management, his key supporters need to show their hand lest they be tarred with a conflict of interest.

The leaders of the Hubbard support group, Paul Carruthers, Michelle Helliwell, Keiran Trass and other reasonably prominent people who I am aware of but wont name because they haven't yet publicly come out, need to declare what financial or personal interest they had and still have in either of Hubbard's failed companies or the man himself and therefore what they might stand to gain by grandstanding on Facebook, television and every other media outlet they fevourishly send press releases to in the hope of getting a scrap of publicity.

I mean, why else would you attack other individuals or groups who had nothing material to do with the collapse of Hubbard's empire unless you had the possibility of a financial gain sometime in the future?

I don't think they are narcissistic attention seekers, although at times they unintentionally cross that line.

Those of us who are not rabid Hubbard supporters would be entitled to think that you had more skin in the game than just losing a personal investment in either of the two Hubbard companies under Statutory Management because of possible fraud, insider lending irregularities, fabricated investments and inadequate and misleading paperwork.

If it was just money lost in Hubbard Management Funds and Aorangi Securities wouldn't you want to go after the individual or company responsible? That is, Allan Hubbard and his directors, instead of trying to scapegoat the responsibility to the Statutory Managers, the Government, Simon Botherway, Bill English, John Key and a conspiracy put forward by Mr Carruthers that the statutory management process was a ruse by the National Party to set up a private bank in the South Island for some of their mates down there - Mr Carruthers does have an active imagination, Ill give him that.

There is a disconnect then when it comes to those leaders of the Hubbard support group who have publicly put themselves forward. A disconnect between who is responsible for losing money in the aforementioned Hubbard investment failures - the individuals who invested or those that were advised by so-called experts and Allan Hubbard are clearly to blame - and those who run the Hubbard support groups who want to shift the blame to others and not Allan Hubbard and ultimately the investors themselves.

We have seen countless other finance companies of Hubbard's ilk go under because of dodgy dealings but outspoken investors have always pointed the finger largely at where the blame lay. At their advisers feet, with the company or individuals in the company itself or indeed themselves for being ignorant or too greedy in a small number of cases. They have never involved parties that have had nothing to do with the collapse of the respective finance company.

What have the leaders of the Hubbard support group got to gain from pointing the finger at the wrong people?

I would suggest you follow the money. Where you find the most moola to gain or lose or a back to re-slap you will find the most vocal trying to duck their responsibility.

It is called risk guys, take a look in the mirror and spell it out slowly.

Sometimes you win, sometimes you lose.

At least be upfront though for the reason for your support and declare any interests.

It is the honest thing to do.


* Just a wee footnote:

Just over 200 devotees of Allan Hubbard turned out today in Timaru in the vain hope that statutory managers, Grant Thornton would be forced to overturn a statutory management that is legally unchallengeable.


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c Share Investor 2010

Friday, September 17, 2010

The Warehouse still interested in Australian Expansion

In a Share Investor Q & A out 20 Sept 2010, on Ian Morrice, CEO of The Warehouse Group Ltd [WHS.NZX], Ian gives some very interesting answers to my questions to him. We cover aspects of his business life, retailing in general and the Warehouse Group specifically and some other topics thus far not broached by other interviewers.

One answer that really interested me was the answer to the following question on the Australian retail market and any possible move back there:

"SI - Ryman Healthcare Ltd [RYM.NZX] has recently announced a move into the Australian market while Telecom NZ [TEL.NZX] is selling up their Australian assets. Do you you see the possibility of The Warehouse going back to that market given the right opportunity and a more appropriate execution of an expansion there?

IM - We would consider it but not through taking the Red Sheds model to Australia.

SI - What mistakes were made when the company entered the Australian market in 2000 and how would you do things differently if you entered that market?

IM - Any future move into Australia would fully consider the competitive environment and the availability of the appropriate footprint in the right locations".

Ian's predecessor, Greg Muir, gained a foothold into Australia in August 2000, by acquiring the Clint's Crazy Bargains/Silly Solly's chain of 115 discount variety stores and ended up losing the thick end of $200 million of shareholders money when Ian bailed out in 2005.

Not Ian's fault of course and it looks like any further entry into Australia would be a bit more considered and planned rather than the rush of blood to the head that Greg Muir - former director at Hanover Group and current director at Pumpkin Patch Ltd [PPL.NZX] - had when he decided to plunk down north of $100 million to buy the aforementioned chain.

I was very excited about the move into OZ back in 2000 but upon reflection and 10 years more experience in the stockmarket I now realise I had my head firmly in a place that never sees the sun in terms of the planning of the Australian expansion. I still believe that a more considered and planned approach to expansion of the company in Australia would be a wise move on Ian's part.


Disclosure: I own WHS shares in the Share Investor Portfolio

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Discuss WHS @ Share Investor Forum - Register free
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Shop online at The Warehouse





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c Share Investor 2010

Thursday, September 16, 2010

John Banks VS Len Brown

If voters learnt anything from the 9 years of the Labour Government that ended in an economic and social heap of dung, they learnt that socialism doesn't work.

It is interfering, demoralizing, it leads to social problems and perhaps more importantly to hardworking ratepayers/taxpayers, it is very expensive.

In respect to the local body elections in the race for Major for the new Auckland "Super City", voters have a choice between the two leading contenders, John Banks and Len Brown.

While John Banks is connected to the National Party and pushes their agenda of personal responsibility, business, efficiency and smaller Government (his actions belie the last part) Len Brown is another kettle of fish altogether.

Len is a socialist. Nothing wrong with that if you follow this extreme political line but it is bad news for the bulk of us who don't.

Len has for the last 3 years as Mayor, and years before that as Councillor, overseen a Manukau City Council that has raked up record debt by spending ratepayer cash on free swimming pools, cash handouts to special interest groups, koha to political friends and racial favouritism, not to mention his own personal spending on the ratepayer credit card.

For the supercity he wants to expand all this and add some really expensive toys that just don't add up financially.

He wants an Auckland wide rail system, free swimming pools for all (who pays for those again?) he wants all council business to be council controlled rather than privately owned, bigger roads, bigger parks and much, much more... in short a much bigger council.

He also want to continue what he calls positive discrimination, that is, he wants to favour Maori and Pacific Islanders by allowing them representation and input on the council without them being voted in.

I call that racist but hey that is what socialism does. It creates imbalances when it tries to make everyone the same.

Auckland voters have to make a wise decision this September.

Vote for John Banks and you will get much the same that you have got from his time as mayor of the smaller Auckland but vote for Len Brown and you will end up with a mess much the same as was left behind by the last Labour Government.




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