Helen Clark esablishes a new low for politics

Only in banana republics and dictatorships in places like Africa, the Pacific Islands and South America do immoral, illegal and corrupt politics exist.

New Zealand was added to that ignominious list when the Electoral Finance Act was introduced on Jan 1 2008 but now with the Peters/Glenn/Clark donation scandal the banana bends just that much further.

We have a leader, Helen Clark, who supports a Minister, Winston Peters, who holds the Foreign Affairs Portfolio, that is being investigated for fraud by the Police and Serious Fraud Office and is also under investigation by the Privileges Committee for not disclosing a $100,000 donation made to him by Owen Glenn.

Furthermore, Peters has been caught out lying over each count made against him under ministerial oath to Parliament, The Privileges Committee, Helen Clark and ultimately every New Zealander.

Then we have a Prime Minister, caught out lying about her involvement in the Glenn donation scandal.

What does the Prime Minister do to the offending Minister?

He isn't sacked, continues to receive the baubles of office: Limos, office staff, salary and expenses.

Why?

Because Helen Clark wants to stay in office for as long as she can, pass fraudulent laws like the Emissions Tax Act and protect an allie for a possible partnership after the next election.

You see Peters is able to use all these accoutrement's to help him retain a place in Parliament.

Aunt Helen is also petrified over some of the secrets he might spill over the Owen Glenn donation saga; what her and the Labour Party President, Mike William's real involvement was.

Because they are not giving the full picture.

It is clear from all this that even though your party might be facing a donation scandal, you and or your minister is donkey deep in it all and there have been lies told to cover up the whole scandal, because it is politically expedient to do so, Clark will do nothing.

As usual, nobody is taking responsibility, nobody is paying a price for despicable and illegal behaviour and all for the sake of our Prime Minister's lust for power.

We all deserve honesty from our leader and her parliamentary allies but we are not getting it.

The banana bends even further in New Zealand but at least the established banana republics that I referred to above have a way of removing corrupt governments.

Is time for a riot?

At the very least it is time for an election. 

c Political Animal 2008

Labour's failed social experiment, South Auckland, erupts: Again

The Labour Government social welfare experiment that is South Auckland has claimed another victim.

This time an innocent cop, shot dead, not just shot but chased and then murdered.

It begs the question why they had to run in the first place, they clearly were not armed but should have been.

Police at the scene in Mangere, Auckland, this morning. Photo / NZPA

• Police killed on duty

A plainclothes police officer was disturbed during an operation early this morning, chased in a car and then shot dead. The officer's colleague was also shot and is in hospital with non-life threatening injuries. The two officers were attempting…More

Clark's lie central to Glenn donation scandal

It wasn't the actual break-in that cost "Tricky Dicky" his presidency in 1973 but the cover-up that brought his government down.

A similar focus of light should be shone on Helen Clark and her knowledge of the $100,000 donation back in December 2005, when the Labour Party President, Mike Williams, helped execute the loan to Winston Peters for his legal case in the Tauranga seat after the 2005 election..

We know that Williams and Clark are self confessed best friends, we also know they are in constant contact via phone or email and we are all aware that Mike Williams gives all information to her leader-in fact she insists on being fully informed, what she called a "no surprises" way of governing.

It is beyond the realm of possibility and past history that Ms Clark didn't know about the loan from its genesis.

The question is why did she not come forward in February 2008 when the donation scandal broke and only tell the public of her knowledge in August but then say "I knew about the donation in February 2008".

She omitted to reveal what she knew about the scandal in February 2008, then clearly lied about the timing in August.

One has to ask what more is she hiding, more donations scandals, evidence of her or Labour's deeper involvement? We just dont know.

We don't know because our journos are too gutless to ask her the hard questions. They are afraid of her.

Kiwis need to know of her part in the cover-up and her or Labour's involvement in the donation itself.

Not to know is akin to the running of tenuous democracies in Africa, the Pacific Islands and the current turmoil occurring in Thailand.

Kiwis wont be protesting about their crooked lying Prime Minister like the Thai people currently are but where is our Woodward and Bernstein when it comes to the likes of exposing our own "Corrupt Clark"?

The case for The Warehouse without a buyer

The Warehouse Group Ltd [WHS.NZ]has been embroiled in several takeover attempts over the last 18 months or so.

The company has been at the center of bids from Woolworths Australia, Foodstuffs, the New Zealand grocers cooperative and the majority owner and founder of the company, Stephan Tindal.

Of course we all know all this takeover activity is on hold while Woolworths take the battle to The Supreme Court.

In the meantime the capital value of the company has halved and the retail sector, including The Warehouse, has been hit by a recession.

What investors have to ask themselves is, what is the company worth and what are its prospects for the long term if the status quo remains and the company is not merged or bought by a new owner.

Without a doubt, The Warehouse is the major player in the New Zealand retailing sector. It is the largest non food retailer, only Foodstuffs and Woolworths are larger, and it is dominant in most areas of retailing including: clothing, books and CDs, gardening and a whole host of other non grocery items.

The company has an enviable position as a company with great logistic capabilities and "on time' delivery of stock, important in the low margin area in which they operate and their geographical spread across the country, in some of the best malls and stand alone shopping districts, solidifies their logistical capabilities.

The name the Warehouse is also a great brand, well known, backed by frequent advertising and often the first choice for consumers when they think about buying any non grocery item.

A good history of trading also makes the company a good long term prospect in the future.

Interestingly, when you look at the historical trading activity of the company in terms of sales when compared to today and in the light of the current share price the figures are curious.

If I pick a date the earliest I can find, Jan 3 2003, the share price for The Warehouse closed at NZ$7.10 for that day.

Revenues for the full year 2003 (PDF) were slightly over NZ 2 billion dollars, approx 1.5 billion if you strip out Australian sales- the figure relevant for my comparison because The Warehouse OZ no longer exists.

A closing price of just $3.23 on 9 Sep 2008 and the most recent half year sales to January 27 2008 of $852 million (PDF)-estimated $1650 million for full year 2008 show a big drop in share price to sales from 2003 to 2008.

Net profit for full year 2003 was $82.1 million and after-tax earnings for the year ending July 27 2008 are expected to be between $84 million and $88 million, in the toughest retail environment in New Zealand for a generation.

Profit and sales will presumably increase as the retail sector inevitably improves.

The significance then of the difference in what the market puts as the capital value of the company today when compared to 2003 is obvious. It has been unduly marked down, as many listed New Zealand retailers have.

Sales are up and so is profit from 2003 but the market has given up.

Even without the prospect of The Warehouse being bought on the horizon, the capital value of the company is way below that of what it should be, the facts and figure comparisons reflect that.

The fact that 3 different suitors are interested in buying the company means that they can see the value in the company as well. All the advantages that The Warehouse hold in New Zealand retail are the reasons why others want a piece of The Warehouse action.

Long term investors in New Zealand retail stocks would do well to consider buying shares in the Warehouse to capitalise on the current low share price and tough retailing conditions.

In my opinion it will be one of the better performers long-term amongst our listed retailers.

The Warehouse full year result to July 27 2008 is due out 12 September.


Disclosure: I own WHS shares in the Share Investor Portfolio


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c Share Investor 2008