Wednesday, September 22, 2010

Allan Hubbard Saga: Supporters head to the exit door

Interesting that in a piece in the Otago Daily Times on the case that Allan Hubbard supporters say they have against the Statutory Management of several of his financial entities and the spectacular crash of South Canterbury Finance indicates that it is unraveling quicker than a mangy cat pulling on a wet ball of wool:

"Chief Ombudsman Beverley Wakem was yesterday forced to tone down claims her office was investigating an alleged conflict of interest against Securities Commission member Simon Botherway, saying it was looking at the process and procedures followed, not Mr Botherway's actions.

Also yesterday, a formal business connection claimed by the group to exist between Mr Botherway and Christchurch businessman George Kerr was revealed to have ended in December 2004, when Mr Kerr resigned as a director of Brooke Asset Management.

Information on the New Zealand Companies Office website shows Mr Botherway resigned as a director in July 2008 and that Brooke Asset Management is now owned by Macquarie Investment Management Ltd.

The Securities Commission in June recommended Aorangi Securities, seven charitable Trusts and Mr and Mrs Hubbard be placed in statutory management, but it was several days later that Mr Botherway revealed that last year businesses owned by his brother, Jonathan, had been placed in receivership by South Canterbury Finance (SCF), owing $7.8 million.

The Stand By Hubbard campaigners accuse Mr Botherway of having a conflict of interest as a result, a claim that appeared to have some substance when the Office of the Ombudsmen earlier this month agreed to an investigation.

But Ms Wakem contacted media yesterday to emphasise her office was not investigating Mr Botherway and the process was fair and administrative justice was followed in the disclosure of a potential conflict of interest." Otago Daily Times, 22 Sept 2010

Those of you reading my comments on this long-winded saga will know that Allan Hubbard's supporters didn't really have a case from the get-go.

Claims by Paul Carruthers, one of the main drivers of the case supporting Hubbard, have ranged from multiple conflicts of interests, fraud by several politicians and business identities and a conspiracy planned by John Key's Government to set up a bank with his mates in Canterbury.

Claims made by Carruthers and something I was questioning myself, that Simon Botherway had a conflict of interest as his position as a board member of the Securities Commission clashed with its involvement in the statutory management of the Hubbards and the fact that a company owned by Botherway's brother was wound up by South Canterbury Finance, are also looking quite tentative given comments made that the ombudsman is only looking at processes followed rather than the actions of Mr Botherway.

Paul Carruthers submitted the complaint to the ombudsman.

I agree with Carruthers that Botherway's conflict should be investigated. I believe that no matter if he didn't have a "real" conflict of interest - I cant see how he didn't - it is the perception in the public's eye that counts and it is clear that our perception is that Simon Botherway had a conflict at least in that sense.

On Paul, he has spontaneously combusted into the ether after my questioning of him on this post and on a personal Facebook exchange with me yesterday, on the validity and availability of the Pricewaterhouse Coopers Report that his group have placed utmost importance on.

"I never claimed to have it but that doesn't mean I haven't seen it. Why do you want to see it if you are already convinced he is guilty? Are they not paying you enough? Hedging your bets just in case huh?" Facebook Exchange

Paul's personal Facebook page has vanished as have all the comments on the Help Allan Hubbard Facebook page as well as all documents related to his "case" on the Standbyhubbard.org site.

Is Paul sitting somewhere in a corner violently rocking back and forth? He doesn't do quiet at all.

Given the slow unraveling of evidence against Allan Hubbard thus far and more to come over the coming weeks - Grant Thornton Report 3 is due next week - I am betting that Paul and his merry band of pied piper followers will disappear into the ether with not much more than a squeak.

Pressure from myself and others seems to be batting the bastards back.

The silence from the affirmative is deafening.


Related Share Investor Reading

Download Grant Thornton Report 1
Download Grant Thornton Report 2

Allan Hubbard Saga: Threats & the Mysterious PWC Report
Allan Hubbard Supporters: Conflict of Interest
VW Veneer reveals BMW heart
VIDEO: Jenni McManus Explains Allan Hubbard Collapse
Allan Hubbard Statement on SCF Receivership
VIDEO: Sandy Maier - full news conference on SCF Receivership
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 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

Tuesday, September 21, 2010

Restaurant Brands Ltd: KFC has finally cracked it

I haven't written much about Restaurant Brands Ltd [RBD.NZX] recently, it has been quietly going about its business with pretty much good results.

Their second quarter sales release prompted me however to come out and discuss some issues surrounding the fortunes of the company.

When I last discussed this company back in early June, I commented over the distortion of figures used by KFC management to report sales figures. They didn't include inflation as part of their calculation:

"The "record" $54 million of sales reported in today's result for KFC is only a record in terms of 2010 dollars. KFC are actually serving up less chicken to fewer customers.

Their best listed year was in 1997 where they did $172.3 million in KFC sales. That is because of accumulated inflation at a very conservative 3% annually over the last 13 years amounts to 39%.

Now lets assume conservatively that RBD sell $220 million of KFC for the full year 2010 and compare that figure to the 1997 record year.

39% inflation means in 2010 dollars RBD would have to sell $67.2 million more chicken just to match the record made in 1997.

$220 million is a fair way from the figure they need to make, of $239.5 million, just to match the 1997 record."

I have also wondered whether the increase in KFC sales was a sustainable one that had a long term take with KFC customers and it looks like given $72.8 million in sales for KFC in the latest quarter that if this growth continues the company could be looking at close to $300 million in total annual sales within the next year or so. This would easily beat the inflation adjusted $239.5 million that they needed to make to beat the record year for sales back in 1997.

I had my doubts but RBD CEO Russell Creedy looks like he has found the secret recipe for this company and its future and that recipe is clearly KFC.

Starbucks and Pizza Hut, the two other brands that the company manages, are still struggling and remain an unprofitable noose around the neck of the parent company.

The only answer for me is when will they be sold so they can allow the KFC brand to flourish even further without the distractions that two other brands bring to the parent company.


Restaurant Brands @ Share Investor

RBD - 2010 Quarter one sales
RBD - 2010 Quarter two sales


Restaurant Brands: KFC Sales Figures Explained - Part 2

Finger Lick'n Good Management
Chart of the Week: Restaurant Brands Ltd
Long Term View: Restaurant Brands Ltd
Stock of Week: Restaurant Brands Ltd
Restaurant Brands: Buy or Sell ?
Pizza Hut sell-off provide opportunities all-round
Danny Diab & Restaurant Brands
2008-2009 KFC sales figures mislead investors
KFC Finally Flying
Starbuck's New Zealand Cup doesn't runneth over
RBD gives KFC a push
McDonald's playing chicken with KFC
Restaurant Brand's Pizza Hut faces increasing competition
RBD sales analysis
RBD saga continues: CEO leaves
The secret recipe is out
2007 FY profit analysis
Delivering increased profit in October 2007
No reason for optimism in latest sales figures

Discuss RBD @ Share Investor Forum



c Share Investor 2010




Monday, September 20, 2010

Share Investor Q & A: Warehouse Group CEO Ian Morrice

The Warehouse Group Ltd [WHS.NZX] has had a tough last few years. Profit has been flattish and sales have remained relatively stagnant.

The Warehouse is a company with a long established history in New Zealand as the bargain retailer and it has been a great investment for long term shareholders over the past 16 years.

Over the last 5 years though the company has stalled in growth and now faces more serious competition from its rivals.

It has been headed by canny Scot, Ian Morrice for the last nearly six years and he has done well to manage the company through the debacle of The Warehouse Australia and a clean exit from that market and a subsequent recession, especially felt in the retail sector.

Attempts at growing the business by moving into the supermarket sector failed and this move prompted Foodstuffs and Woolworths Ltd [WOW.ASX] to each take 10% stakes in the company with a possible view for a full takeover by either thwarted by the Commerce Commission and numerous legal appeals, so far, as senior as the Court of Appeal and a possible move in the Supreme Court.

What do we know of Ian's plans for the "Red Sheds" and how he intends to take the company into the future though?

With these things in mind and many other questions in my head I submitted questions from myself and Share Investor readers to Ian via email.




The Q & A

Share Investor - Your 2010 full year result of $83.2 million after adjustments for accounting, depreciation changes and company tax rate was flatish, compared to the 2009 full year result. What contributed to these profit levels and in comparison to last year how do you feel the company has performed considering the overall economy?

Ian Morrice - Overall the adjusted profit result was solid given the trading conditions. We held our share of the Department Store Sector for the year in The Warehouse, and Warehouse Stationery had an excellent recovery of both sales and profit.

SI - The Warehouse has had a series of flat results over the last few years on stagnant revenue. Do you see an end to this anytime soon and if you do what steps are you taking as CEO to grow sales and profit in the future?

IM - Key elements of our growth plans are: Investment in our existing stores, adding new space and developing New Zealand’s best retail multi-channel offer. We have set out our organic growth plans for The Warehouse and Warehouse Stationery in the results presentation (available on our website). Flat results over the last few years reflect the resilience of our business in very challenging market conditions.

SI - Looking towards 2011 do you think you will be able to beat the 2010 result and if not why not?

IM - We are not giving any guidance on this until after Christmas and Back to School – March 2011.

SI - You maintained margins at around 7.4%, how did you do that while selling so much stock just to quit it from inventories?

IM - We continually work hard to manage margins and costs, whilst remaining price competitive.

SI - Do you expect higher sales levels for 2011 and will that be at the expense of margins or not?

IM - We are targeting higher sales, any impact on margins will depend on the trading environment over the next 12 months.

SI - CD and DVD sales were down markedly and they are likely to continue to drop in the coming years due to digital formats sold or obtained free from the internet. What is the company doing to fill the gap left from these sales from other retail categories. Could we see the warehouse partner up to sell digital music and movies online?

IM - We have been expanding space given to growth categories for some time, to offset this shortfall. We will offer downloading on-line when it is commercially viable to do so.

SI - What made you travel as far as you can go on the planet to head up The Warehouse when there must have been more opportunity in Great Britain and Europe?

IM - The Warehouse is a unique company which stands for something and genuinely makes a difference to the people of NZ – the chance to run a business like this is a great opportunity. Also it represented an opportunity for the whole family too.

SI - What are some of your business and management principles and what strategic planning method do you adhere to?

IM - Consistency, fairness and integrity; discourage politics and encourage development of people. Structured approach to continual strategic thinking, encompassing all common elements on modern strategic planning, including board participation.

SI - What are your medium to long-term growth plans (5-10 years) in terms of company size and revenue growth.

IM - Within NZ, organic growth of existing businesses to $1.9bn to $2.0bn in five years. Acquisitions remain a feature of our strategic thinking, both within NZ and Australia; depending on meeting our investment criteria.

SI - How is The Warehouse performing against competitors like Briscoe Group Ltd [BGR.NZX] Kmart and Farmers, are you winning the battle?

IM - The competitors mentioned we believe are in the department store sector of NZ Statisics and therefore we are more than holding our own in the last 12 months, based on our share of that sector.

SI - Brisoce Group, a direct competitor to The Warehouse in a number of retail sectors, has managed to grow same store sales over the last year, while the Warehouse has dropped its same store numbers. Why do you think that is the case?

IM - Some specialists have recovered sales lost over 2008 and 2009 when the drop in consumption hit them hard. The Warehouse has navigated the difficult conditions with resilience. BGR results are not unique and typical of specialists in the last 12 months, eg Warehouse Stationery.


SI - How are the all important margins tracking and how much emphasis are you placing on them given that Hallenstein Glasson Holdings Ltd [HLG.NZX] look to be doing better this year after a focus on margins rather than sales at any cost?

IM - Margins are always a vital component of the retail model, we always place emphasis on margins, relative to price/volume trade-off and inventory turns.

SI - What kind of profit margins are you achieving and can the company do better?

IM - Our operating margins compare favourably with either domestic or overseas retail groups.

Reader Question - Conventional wisdom suggests that the Warehouse grows sales/market share during harder economic times. However that does not appear to have occurred during the present recession, the worst in living memory. This has been reflected in a share price that has been flat for the last two years apart from one short-term spike. Does your analysis support this contention and if so, is the company confident that appropriate measures are in place to improve prospects in the medium term?

IM - This recession was not like the last one. Consumers stopped consumption to a significant degree in this recession, rather than the trade-down evident in the last one. This comment relates particularly to non-food items which are discretionary. Our sales and profits have been very resilient through this period compared to other retail groups. This has enabled us to fulfill our promise of increased returns to shareholders through this time.

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.

SI -Your decision to enter the grocery sector to compete with supermarkets that in a spin-off led to Woolworths and Foodstuffs both taking 10% stakes in the company. Did you give that enough time to succeed?

IM - We trialed our move into the grocery sector in a contained way and fully tested the economic model of a supercentre format. We believe that we had all the information needed to make our decision.

SI - Do you see either company making a full takeover offer anytime soon ?

IM - That’s really a question for those parties you mention.

SI - There are currently 87 "red sheds" in New Zealand. How much more retail space do you think the company could open in terms of stores or square metres of space?

IM - Around 30,000 square metres over the next five years.

SI - The "Metro" stores that you have thus far opened. How are they doing so far?

IM - We now have three small stores opened; Mosgiel, St Lukes and Rolleston. We are pleased with how they are performing overall.

SI - Is the push into online sales for the Warehouse going to plan and when will it start to make a profit?

IM - Yes – it is bang on plan for Year 1. We anticipate breakeven at Year 4 but cashflow positive already given it drives on-line shoppers into stores.

SI - Like most people, I like to buy brands. Why don't you carry a wide range of brands seen in your competitors stores; Nike, Sony LCD & Plasma TVs, Levis, Speedo, Bendon, etc, etc and wouldn't that get more people through the shop door?

IM - Whilst we don’t stock the brands you mention, we do stock a very wide range (and a large number) of brands. We are introducing new brands each year where our growth objectives are complementary with the brand owner. Examples very recently are: Arcosteel, Mayfair & Jackson, Bisley, Diamondback, Phillips, TomTom, Everlast, Dunlop, Mambo and Havianas …..

SI - I am often disappointed by the levels of service offered to myself, my friends and associates and think sometimes it is so low because New Zealand consumers have low expectations and don't complain. How well do you think your staff represent the company in terms of service levels to customers so customers remain loyal and keep coming back for more over the long term?

IM - Our service does vary across the country and at different times of the week – consistency is the challenge although many of our stores are very good and really know their local customers. We measure customer service in every store, every two weeks, and act on the results.

SI - Does the company have a mystery shopper program and if it does what has it revealed about service levels to the customer?

IM - See previous answer.

SI - I have seen you a few times in a couple of Warehouse stores. Are these types of visits a regular thing for you and what do you learn in this way that you can’t from looking at regular sales figures and stats when sitting in your office?


IM
- I can’t believe you are asking me that question Darren!! (I thought it was a fair question)

SI - The Warehouse used to been recognised as the place to go first to get the best price for just about anything. How has your competition been able to now meet or beat your price offerings?


IM
- We are still the clear price leader overall in non-food. Scale competitors from Australia have low cost sourcing that enables them to be more competitive, however our footprint and operating costs remain the lowest relative cost in the New Zealand market.

SI - Is the overall retail sector saturated in terms of retail offerings or is the recession the main reason for the large number of retail failures and the slowdown over the last 2 or 3 years?

IM – Recession tends to flush out inefficient businesses in all sectors.


SI
- On your higher dividends last year, you paid a special cash dividend of $0.15 on top of the full year payout of about $0.30 this year. Can investors expect a higher dividend come the September full year announcement if you can't really find any opportunities to use your cashflow for any other use currently?

IM - We have paid two special dividends this year and moved from 75% to 90% payout ratio. This is all consistent with us delivering on our promise to our shareholders over the last few years; superior yield.

SI - In my investing experience I have found the level of business leadership in New Zealand wanting – with a few very notable exceptions - when it comes to making good long-term decisions based on sound business skills, the basic understanding of running a business and accountability when it comes to making mistakes and this is often reflected in businesses hiring from an overseas talent pool. What are your views on how we can get good shareholder representation in the boardroom?

IM - Diverse and appropriate talent in the boardroom should always be the primary objective. Listed company directors have an obligation to act in the best interest of shareholders.

SI - What company or companies do you admire the most (apart from WHS) that you don't have a financial interest in and why?

IM - I admire Air New Zealand – good product, service innovations, and very good performance in a difficult sector globally.

SI - I have read Benjamin Graham's Security Analysis and find it crucial to long-term investing not just in the stockmarket but for investing in general. Have you read it and if you have what have you taken from it as its main points?

IM - I have made a note to get a copy and take a look!

SI - Who are some of your business mentors/heroes and why?

IM - I have been fortunate to work alongside some great leaders and business people over the past 30 years. I have tried to learn something from each of them.

SI - What was your first job ?

IM - I was a trainee chef (for about three months prior to starting on the retail shop floor).

SI - What excites you about retailing in general and the Warehouse specifically?


IM
- The fast-moving pace of change, immediacy of results and the career opportunities for young people entering our industry. I am excited about The Warehouse because we continue to make a real difference to the people and the economy in New Zealand through what we do.

SI - What do you see as the strongest and weakest quality of your leadership style?

IM - I regard my strengths as integrity, approachability, passion and determination. Also being across the detail can be both a great strength and a weakness in retail.

SI - What has been your main achievement or achievements at The Warehouse over the last six years as CEO ?

IM - In financial terms: NPAT growth + 40%, debt reduced from over $300m to under $100m whilst returning over $500m to shareholders. I am also pleased to have enhanced our strong brand reputation - 90% of the population still shop with us every year. I am proud of the many leaders who have developed their careers in the business over this time - our talent retention levels are over 90%. We have improved and modernised every aspect of the business over the past six years from source to shelf and transformed our supply chain internationally and domestically enabling significant cost reduction.

We have built significant sourcing scale in China and put in place a comprehensive ethical sourcing programme. We continue to significantly reduce our impact on the environment and support our communities, raising over $2m annually.

We have established credibility in apparel and soft goods categories against significant new competition and I also believe that we have withstood the onslaught of new competitive retail space pretty well, given our very high market share position.

SI - Where do you see yourself and the business you help manage over the next five years?

IM - Re-starting organic growth through new stores and multi-channel is exciting and will pave the way for continued strong returns. Significant investment in our business will ensure that we remain New Zealand’s leading retail group in our sector in both market share and profitability.


Q & A End.


About Ian Morrice - Supplied by The Warehouse

Group Chief Executive and Managing Director - The Warehouse Group Limited

Appointed on 1 October 2004.

Previous roles were Managing Director Commercial and Managing Director B&Q Warehouse, for United Kingdom based B&Q Plc, the number one DIY retailer in Europe.

Ian was with Kingfisher plc for nine years and prior to that with Dixons Group, Europe’s largest electrical retailer, for 15 years.

Originally from Scotland, Ian has been in retailing since age 17. He has an MBA from the respected Cranfield University School of Management in the UK.

About The Warehouse Group - Supplied by The Warehouse Group

From small beginnings in Wairau Road in 1982, Sir Stephen Tindall’s amazing entrepreneurial ability combined with his team’s commitment to “give anything a go” shows you indeed that “nothing is impossible”.

In 1982 New Zealand was quite a different country; imports of many products were restricted so consumers didn’t have much choice and the products that were available were often expensive. The government had imposed a wage and price freeze and getting a housing loan required a savings record for 3 years before you were able to borrow at 18% interest and more! Shopping in New Zealand meant going to stores like George Courts and Haywrights; big established stores in towns and cities. Stephen and his team took a different approach; The Warehouse was located in the suburbs, with basic sheds, bins and racks and concrete floors. The Warehouse sold things never seen before in NZ such as banana loungers, rattan blinds and soccer ball radios, in fact the first Warehouse stores were filled with things that other companies couldn’t sell! When sales took off Stephen and his team went looking for suppliers and goods from around the world that could provide real bargains for Kiwi shoppers. With a relentless focus on keeping costs down and reinvesting profits to ensure prices were low the company culture began to develop in a unique (and successful) manner.

The other way in which The Warehouse was different to its competitors related to the people who worked for it – from the very beginning they mattered. There were Friday night barbeques, monthly team meetings and a chance to socialize afterwards, the famous red t-shirts worn by all staff including managers made it clear that everyone was working together as one team. Even today the legendary Birthday Day Off and annual company Conference with partners are important cornerstones of The Warehouse’s approach to its people.

An appetite for growth and a desire to see every New Zealander offered the opportunity to “enjoy a bargain” has seen The Warehouse grown from just 2 stores at the end of 1982 to 85 stores today. At no stage has the company sat on its laurels and so today it continues to strive for achievement; most recently shown by the entry into grocery, fresh food and pharmacy through The Warehouse Extra.

Timeline:

1982: First store opened in Takapuna, Auckland.
1990: First nationally distributed advertising mailer.
1991: Sales exceed $100 million.
1991: First Warehouse Stationery store opened
1992: Opening of first store of 25,000 square feet (2,322m2)
1992: Public float and listing on the New Zealand Stock Exchange
1992: Launching of The Warehouse card
1992: Opening of first store of 50,000 square feet (4,645m2)
1995: The Warehouse added to NZSE40 Index
1995: Introduction of green gardening department
1996: Opening of North Island Distribution Centre
1996: Introduction of the major AEG brand
1997: Introduction of the first store of 75,000 square feet (6,967m2)
1998: Introduction of apparel as a major department
1998: First shipment of parallel imported goods
2000: The Warehouse added to the NZSE10 index
2000: Sales exceed $1 billion
2000: Opening of the first store of 100,000 square feet (9,290m2)
2001: The Warehouse Financial Services launched
2001: First Triple Bottom Line Report produced
2002: The Warehouse celebrates its 20th Birthday
2007: Opening of The Warehouse Extra
2007: The Warehouse celebrates 25 years and still going strong

Disclosure: I own WHS shares in the Share Investor Portfolio

Share Investor Q & As


Briscoe Group CEO Rod Duke
Ryman Healthcare's CFO Gordon Macleod
Ecoya's Geoff Ross
Xero's Rod Drury
Mainfreight MD Don Braid
Burger Fuel Director Josef Roberts
Sky City CEO, Nigel Morrison
Sky City Entertainment: CEO Nigel Morrison discusses 2010 HY
Convention Centre proposal interview with Sky City CEO Nigel Morrison

The Warehouse Group @ Share Investor

Warehouse Group Ltd: 2010 Full Year Profit Analysis
Share Investor Q & A: Questions to The Warehouse' Ian Morrice
Long Term View: The Warehouse Group Ltd
Share Investor Short: Warehouse Group yield worth a look
The Warehouse Group: 2010 Interim Profit Review
The Warehouse: Big Brands, Big Opportunities
Warehouse strike opportunity to buy
Long Term Play: The Warehouse Group
Share Investor Short: Warehouse Group yield worth a second look
Woolworths supermarket consolidation an indicator of a move on the Warehouse?
Stock of the Week: The Warehouse Group
Warehouse 2009 interim profit a key economic indicator
When will The Warehouse bidders make their move?
Long vs Short: The Warehouse Group
Warehouse bidders ready to lay money down
The Warehouse set to cut lose "extra" impediment
The Warehouse sale could hinge on "Extra" decision
The case for The Warehouse without a buyer
Foodstuffs take their foot off the gas
Woolworths seek leave to appeal to Supreme Court
Warehouse appeal decision imminent
Warehouse decision a loser for all
Warehouse Court of appeal decision in Commerce Commission's favour
MARKETWATCH: The Warehouse
The Warehouse takeover saga continues
Why did you buy that stock? [The Warehouse]
History of Warehouse takeover players suggest a long winding road
Court of Appeal delays Warehouse bid
The Warehouse set for turbulent 2008
The Warehouse Court of Appeal case lay in "Extras" hands
WHS Court of Appeal case could be dismissed next week
Commerce Commission impacts on the Warehouse bottom line
The Warehouse in play
Outcomes of Commerce Commission decision
The fight for control begins soon

Discuss WHS @ Share Investor Forum - Register free
Download WHS company reports

Shop online at The Warehouse




The Warren Buffett Way
The Warren Buffett Way by Robert G. Hagstrom
Buy new: $19.54 / Used from: $12.94
Usually ships in 24 hours





c Share Investor 2010

Allan Hubbard Saga: Threats & the Mysterious PWC Report (UPDATED)

Update includes footnote of Mr Carruther's response to me on the PWC Report.


Back to the furore over Allan Hubbard and the collapse of his financial empire due to to dubious business practices and fraud.

After writing this last week constructively criticizing the Hubbard Support Group and other posts on the topic, I got legal threats poked at me from the hapless Paul Carruthers, the head of the support group. Threats to myself and family of bodily and other harm came from his supporters into my email box and through Facebook over the weekend.

The police have been made aware of this but say they can do nothing unless it is a death threat or actual harm is done.

No doubt they want me to shut my mouth but if you know me you will know that I don't give in to threats of any kind so I will continue to discuss this important issue with my readers - approx 12000 in August and growing.

I just have to say attack my message or opinion if you will but there is no reason to get personal with me.

Going back to the issue at hand, I keep coming across this magical mystery answer to my probing questions on the Statutory Management of two of Hubbard's failed companies and apparently some of his other failed companies as well. That is, there is a favourable opinion in a Pricewaterhouse Coopers Report that differs from the publicly released Grant Thornton Report as to why Statutory Management was implemented.

The problem for me is that this PWC report is somehow only news to Hubbard's supporters. The groundbreaking evidence that Paul Carruthers and his followers say they have they are keeping to themselves.

Good lord I would be shouting it from the rooftops. They were very vocal last weekend when a small group of them met to decide their next plan of action, they even got 10 seconds on the Tele.

No PWC report was released !

You would have to conclude then given the otherwise vocal support for their man, the fact they don't release the PWC report they say they have - and I have no reason to doubt they have some piece of paper with ink on it - means what they do have just doesn't hold up to any scrutiny.

I have asked Paul Carruthers for the PWC Report when they first mentioned it weeks back, again today from him and several other key Hubbard supporters. Nothing has, to date, been forthcoming.

Stay tuned!

Footnote: Paul Carruthers, the main backer of the Hubbard Support Group, has seen the PWC Report but claims not to have it. Funny when it looks like at least he has been quoting it verbatim in much of his correspondence to his supporters.

It doesn't look like this report will see the light of day.


Related Share Investor Reading

Download Grant Thornton Report 1
Download Grant Thornton Report 2

Allan Hubbard Supporters: Conflict of Interest
VW Veneer reveals BMW heart
VIDEO: Jenni McManus Explains Allan Hubbard Collapse
Allan Hubbard Statement on SCF Receivership
VIDEO: Sandy Maier - full news conference on SCF Receivership
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 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