Monday, September 6, 2010

Long Term View: ASB Capital Preference Shares (A)




In this series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO. The calculation of returns includes dividends and tax credits.

ASB Bank Pref shares A [ASBPA.NZX] have been a poor investment for shareholders since their 2002 listing on the NZX at $NZ1 per share. With 43c in net dividends and another 30% for those eligible for full tax credits (see NZX chart above) ASBPA shares have a 30.7 % return (see chart below for the share price percentage gain against the average of all NZX indexes - does not include dividends, tax credits and the share split in its calculation) and over the nearly 8 year listing of ASBPA an annual net return of 3.83 %.

This compares to a 9.28% annual return from the average of all NZX indexes.

Compare ASBPA Prefs to ASBPB Prefs







Long Term View Series

Auckland International Airport
Air New Zealand
AMP Ltd
ANZ Banking Group Ltd
Briscoe Group Ltd
Cavalier Corporation Ltd
Comvita Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Freightways Ltd
Goodman Fielder Ltd
Hallenstein Glasson Holdings Ltd
Hellaby Holdings Ltd
Infratil Ltd
Kirkcaldie & Stains Ltd
Kiwi Income Property Trust Ltd
Mainfreight Ltd
Michael Hill International Ltd
Metlifecare Ltd
Methven Ltd
Mowbray Collectables Ltd
NZ Oil & Gas Ltd
New Zealand Refining Ltd
New Zealand Stock Exchange Ltd
Nuplex Industries Ltd
PGG Wrightson Ltd
Port Of Tauranga Ltd
Postie Plus Group Ltd
Pumpkin Patch Ltd
Restaurant Brands Ltd
Ryman Healthcare Ltd
Sanford Ltd
Sealegs Corp Ltd
Scott Technology Ltd
Skellerup Ltd
Sky City Entertainment Group Ltd
Sky Network Television Ltd
Smiths City Group Ltd
Steel & Tube Ltd
Telecom NZ Ltd
Telstra Corp Ltd
Tourism Holdings Ltd
Trustpower Ltd
Turners Auctions Ltd
Turners & Growers Ltd
The Warehouse Group Ltd
Vector Ltd
Wakefield Health Ltd
Westpac Banking Group Ltd


ASB Bank Pref Shares A @ Share Investor


Discuss ASBPA @ Share Investor Forum


Recommended Amazon Reading

The Intelligent Investor: The Definitive Book on Value Investing. A     Book of Practical Counsel (Revised Edition)
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
Buy new: $14.95 / Used from: $7.50
Usually ships in 24 hours

Buy The Intelligent Investor & more @ Fishpond.co.nz

Fishpond


c Share Investor 2010

Video: Allan Bollard on his book "Crises"



Q+A: Interview with Reserve Bank Governor Alan Bollard…


Source: Q+A - See Interview Transcript Sunday September 05, 2010

Guyon Espiner interviews Reserve Bank Governor Alan Bollard.

I just wondered the merits or otherwise of a reserve Bank Governor who is supposed to show complete lack of bias one way or another to any Government then goes on to critique that Government while still in office over some of its policies in his new book Crisis: One Central Bank Governor and the Global Financial Collapse.

Should a Reserve Bank Governor wait until he leaves his position before writing a book on his time at the bank?

Absolutely he should.

In his book Alan Bollard talks about the the machinations behind what happened at the bank in October 2008 during the global financial crises in relation to his job and the liaison he had with the Labour Government at the time.

He is critical of Labour during the crises and the current Government for its jobs policies.

He seems to be quite candid with much of what he says in the book but at the same time says there are some details he has had to leave out.

Mr Bollard is entitled to an opinion but as Reserve Bank Governer we the people are not supposed to know the biases, political or otherwise, that he might have towards his employers lest we are able to figure out more easily his modus operandi for setting the official cash rate every few months.

Why have a Governer at all, why not let the market set the rate if he is going to spill hits guts in office.

Best to leave the book until retirement Alan and then perhaps you will be able to include all the stuff you left out.


Alan Bollard @ Share Iinvestor


Official Cash Rate: Bollard Gets it Wrong, Again
Alan Bollard Speaks, but who is listening?
Alan Bollard's indecision over OCR a worry to NZ INC
Bollard sits on his hands
Mr Conservative

Discuss this topic @ Share Investor Forum


Recommended Fishpond Reading

Crisis: One Central Bank Governor and the Global Financial Collapse

Buy The Intelligent Investor & more @ Fishpond.co.nz

Fishpond


c Share Investor 2010

Saturday, September 4, 2010

VW Veneer reveals BMW heart




While waiting to get my fish and chips order today for lunch, while out planting some trees for a client I started reading an article by Deborah Hill Cone in the Friday September 3rd edition of the Business Herald lift-out (5 year old "Womans Days" with Rach & Rod on the cover don't do it for me anymore) and what was she writing about?

Yep the man without a plan, the man everyone loves to hate, formally the richest man in Timaru (where is that again?) Allan Hubbard.

I wasn't going to go back there but after my order of 1 chips and a scoop arrived (that is what they call it in the Hawkesbay where I lived my formative years) I just had to keep reading.

Debs made some really good points.

We already know the financial shenanigans and shell games Mr Hubbard and his good mates were up to with other peoples moola but Debs, (I can call her that because I live in Auckland and we are a close knit family up here too) as she does, came at things with quite a unique angle.

She was looking at the intensely close, almost incestuous nature of the order of things in the part of the country that Hubbard and his mates come from.

This she contends, dates back from early settlers who arrived in boats from old mother England and continued their class distinctions in their new land that shows today in the back slapping, secret handshaking, old schoolboy network that supported Mr Hubbard and that supports him to this day. This New Zealand breed of wannabe aristocrats didn't like to flaunt their wealth Though.

She described them well as the airtex wearing, holey jumpered men who looked like paupers but were actually well to do and their lady companions who "wore their collars upturned".

It was kinda like an awe shucks look at me mentality I'm so down to earth, I must be I'm dressed like a bum.

Witness the epitome of this in Mr Hubbard. New Zealands answer to Warren Buffett, who is well known for his frugality and homespun hokiness - he would call it old fashioned. Mr Hubbard is top to toe well-worn Hallensteins circa 1950 and even drives a beat up VW which doesn't look like it has seen much back seat action (if at all) since it was bought by him in the 1960s.

Of course at at one stage though the NBR valued this man a half a billion.

That is of course when this whole charade unravels into reality.

These strange people in this clique of people down there in the Canterbury area (If you are reading this and actually flaunt your wealth like most Aucklanders then I am probably not talking about you) stick together like a Parnell Girl to her Takapuna Grammar old boy 10 years her senior and the motivation for support of Allan Hubbard seems connected to the tribe mentality of looking after the individuals in the pack, should the whole tribes reputation suffer a mortal moral, legal or in this case financial gaping wound.

If I maybe serious for one moment, this appears to be the reason why the main pack behind support for Allan Hubbard, the old boys network of Canterbury ( I am a bit jealous because Onehunga High School where I hail from doesn't have this sort of network) is rallying the ignorant, angry, lonely hoi poloi around them in the hope that the herd will stop the all important old boys network from a fatal blow.

This sort of protection of the big fish is great if you can get it and the network in and around Christchurch and Timaru are doing a sterling job of circling the wagons in the face of the reality of even bigger fish from the Serious Fraud Office and forensic auditors crawling so far up Mr Hubbard's backside not even a Christchurch Boys High School old boy could get a finger up there let alone anything else.

I had a different opinion of the support for Mr Hubbard, I thought it was sheer ignorance and stupidity (well?) but my good mate Debs up here in Auckland has convinced me it is mostly about protectionism; of a group that has always seen itself as the ones who make the decisions and wield the power over ordinary folk like you and me.

Amazing what you can find in yesterdays fish and chip paper huh?


Related Share Investor Reading

Download Grant Thornton Report 1
Download Grant Thornton Report 2

VIDEO: Jenni McManus Explains Allan Hubbard Collapse
Allan Hubbard Statement on SCF Receivership
VIDEO: Sandy Maier - full news conference on SCF R...s
Market Alert: South Canterbury Finance to be placed in Receivership
Allan Hubbard: Ignorant Supporters Blissfully Unaware
Thornton Report 2: Allan Hubbard Guilty as Charged
Allan Hubbard: Full TV3 Interview - July 16 2010
Thornton Report: Allan Hubbard's Aorangi Securities
Whatever happened to? Muriel Dunn
Bothered by Simon Botherway
Allied Farmers: Prosecutions should be on the cards
Allied Farmers Fraud passes with little fanfare
Allied Farmers: What's it Worth?
Hanover, Allied Farmers deal more of the same
Jane Diplock Q & A Interview
Hanover's "White Knights" are really daylight robbers
Hanover collapse: It was just a matter of time
Money Managers Saga: 3 Story wrap
Money Managers gives First Step investors the middle finger
Greed is bad: Geneva Finance Folds
Financial 101: Learn before you leap
Kevin's Blog


Recommended Amazon Reading


The Intelligent Investor: The Definitive Book on Value Investing. A     Book of Practical Counsel (Revised Edition)
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
Buy new: $14.95 / Used from: $7.50
Usually ships in 24 hours

Buy The Intelligent Investor & more @ Fishpond.co.nz

Fishpond


c Share Investor 2010


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