Share Investor

Thursday, October 7, 2010

Michael Hill International: Is Kim Kardashian the right fit?

Kim Kardashian

At first glance the choice of Kim Kardashian, reality queen and porn star, might look a good person to get publicity for a contest to find "the world's best couple" and further your brand in the United States and if you are Michael Hill from Michael Hill International Ltd [MHI.NZX] you would do just about anything to make your business there prosper but is Kardashian really the right fit for a business that sees itself as an upmarket jewelery brand?

Kardashian & Hill pair are teaming up to find the world's best couple. Dating, engaged or married couples can all be in to win a 22 carat diamond ring valued at more than $250,000 and the resultant publicity will get millions of dollars of free advertising for the jewelry chain, that is currently struggling in the Chicago area that it has operated in since late 2008.

Hill had many gimmicks that got himself and his company noticed in Australasia in the 1980s - 1990s and that subsequently led to a good long-term business but have things changed so much in 20 years that now somebody famous for ***king in front of millions is going to do the business for you?

I think it is a mistake but I could be wrong, I am only a small shareholder in MHI and not the man himself, so what do I know.

I think it is short term publicity that could backfire.

Nevertheless you can follow the madness at the official competition site or Facebook page.

* Kim Kardashian Photo supplied for research purposes and google rankings.

Disc I own MHI shares in the Share Investor Portfolio

	Toughen Up by Michael Hill Buy used from: $4.46

Toughen Up by Michael Hill
Buy used from: $4.46

c Share Investor 2010

Share Investor Portfolio: Spring Stock Picks

Tuesday, October 5, 2010

Is Joris De Bres' Racially Biased?

I am slightly amused by the big fuss made over wind up comments about Anand Satyanand made by TVNZ Breakfast host Paul Henry on his show yesterday. It really is a non story but it is being twisted by the sniveling left wing media because there is no alternative "news".

What really grabs me by the balls and gives them a big yank though is the response by the bloated Race Relations Commissioner Doris de Bres.

Henry apologised to the sensitive wee things that were offended but that wasn't good enough for Doris.

Doris said:

"...the apology was not good enough, and should be aimed at all New Zealanders.

"When you say, 'I'm sorry if I offended you', it makes it sound as though the person who was offended is at fault..."

When Hone Harawera called white folk "white motherfuckers" earlier this year Doris said this was part of his freedom of expression and was "....just Hone being Hone..." he sure is one cheeky little darkie ah bro!!

Hone apologised to any offense that might have been caused but also qualified that by saying the "sentiment" of his words he stood by.

I am not bothered by either Henry's comment or Haraweras, it is merely someones opinion and we can judge them based on that but get a grip on your taxpayer funded gravy train Doris!

If you are going to be given half a million a year to sit and pontificate, and get fat and lazy, at least look like you are being fair when you make your pathetic, racially biased decisions.

c Darren Rickard 2010

Friday, October 1, 2010

Allan Hubbard Saga: Third Grant Thornton Report reveals more dirt

With the release of the third Grant Thornton Report today the public has got a much better view of what Allan Hubbard and his fellow directors have been up to over at the now defunct Aorangi Securities, Hubbard Management Funds and numerous other business entities put into statutory management a few months ago.

While Thornton Reports 1 and 2 outlined the main points at issue in the case against Allan Hubbard, Report 3 gives us the detail and further evidence. Unfortunately because of the way Allan Hubbard eschewed paperwork, much of the detail has yet to come forth and may not be revealed at all, as there are simply no records on many loans and we would have to rely on the generosity of borrowers to put their hands up and identify themselves. Really who is going to do that.

What we see in the third report are the following main points:

* Aorangi previously advanced Southbury Group Limited (“Southbury”) the sum of $10 million. Southbury’s principal asset appears to be its interest in South Canterbury Finance Limited. Since the last Thornton Report South Canterbury Finance has been placed in receivership. The consequence of that is that Aorangi's investment in Southbury Group is unlikely to be recovered.

* Most assets held by the various entities in Statutory Management have been well overvalued.

* Accounts are either missing, were never in place or confusing.

* The possibility exists for a 23c return on the dollar to investors in Aorangi sometime in the future.

*Securities and assets were used as security for 3rd parties that had interrelated ties and therefore material to other investors easily getting their money back.

* Investments made by Hubbard were high risk, high return.

* Most assets were highly illiquid and therefore had to cash up when needed by investors.

* The majority of shares held were of the unlisted variety which are difficult to sell, especially in a depressed market.

* Many loans made inter-party were given security from other Hubbard related business entities - highly risky

* Hubbard Management Funds made big loans to Allan Hubbard's private businesses.

The worst part of this report reveals in more detail that Allan Hubbard built his investments on the foundations of a very large interrelated domino game. That is to say loans were made here, to related businesses there and if one fell, as they did months ago, the other had the distinct possibility of falling as well.

The other poor reflection on Hubbard was his lax and illegal accounting practices. No paperwork for some loans and he relied on his borrowers to be honest and pay back this and that whenever they could! Now that is not "old fashioned business done with a handshake" as he calls it, and his supporters would back up, it is plain and simple stupidity and very high risk. Old fashioned business did do business with a handshake but they always did the paperwork.

So much for looking after peoples money like it was his.

I am of the view now that the statutory managers have uncovered enough facts -as they are - to pass on their findings, the relevant information to the appropriate regulatory bodies, including the Serious Fraud Office, as to enable prosecution of Mr Hubbard and whoever else was involved in his various financial shell games. I am not confident that Mr Hubbard and his fellow travelers will get their just deserts but at least now charges can be brought and we can see the process proceed from here.

Meanwhile the Serious Fraud Office is finalising its second interim report over the fraud case against Hubbard and multiple business entities and would be considering three options: charging Mr Hubbard, continuing the investigation, or closing it.

Another report from Grant Thornton will be released at the end of October and it is likely to be the forth of many more to come.

Share Investor

Thursday, October 7, 2010

Michael Hill International: Is Kim Kardashian the right fit?

Share Investor Portfolio: Spring Stock Picks

Tuesday, October 5, 2010

Is Joris De Bres' Racially Biased?

Friday, October 1, 2010

Allan Hubbard Saga: Third Grant Thornton Report reveals more dirt

Total Pageviews

Translate

Search Share Investor

Share Investor Blog Archive

Share Investor

Share Investor Portfolio Individual Shareholder Websites

Market/Financial News

Stockmarket/Business Blogs/Share Forums

My Favourite Reading