Helen Clark, the Prime Minister of New Zealand, continues to have a problem with separation of her job from conflicts of interest and possible conflicts of interest.
Apart from the numerous personality, and socio-political conflicts she has in her day to day activities the topic up for discussion here is her and her Government's numerous conflicts of interest with the business world.
We have had recently Clark herself, Micheal Cullen and other Government Ministers interfering in Air New Zealand by making public statements that have affected the share price of the airline, likewise she and her Ministers erred again in 2006 when making inappropriate comments, on several occasions, about Telecom New Zealand that lost shareholders 100s of millions of dollars.
Most recently we have had Winston Peters, a Labour Government partner and lapdog making inappropriate comments in the media about influences they could use to stop the Auckland International Airport from being sold.
The most glaring example and probably least known, is the conflict that arises from Jeanette Fitzsimons from the Green Party and her major shareholding in the listed NZ windfarm owner , manufacturer and developer, Windflow Technologies.
Fitzsimons is a partner to the Labour Government and drives Labour's "Green Agenda" for them. Fitzsimons has been responsible for passing law and changing rules to give companies like hers an advantage over competitors and as a result she has financiallybenefited directly from her activities in Parliament. Jenette has a knack of forgetting to mention her large shareholding in Windflow Technology when dealing with such matters when doing Parliamentary business.
You cant get more corrupt and conflicted than that but she has a good role model for her modusoperandi in Al Gore, but that is another story.
If we get back to Clark's role in this though, not only is her Government culpable in the conflict of interest by allowing Fitzsimons to feather her own nest but she has also been directly championing the company with financial, moral and media support for Windflow Tech.
Helen Clark with Windflow Technology head Geoff Henderson,centre, and Derek Walker, chairman of NZ Windfarms, at the commissioning of NZ Windfarms' turbines near Palmerston North.
This sort of Parliamentary, legislative and Prime ministerial support for Windflow Tech is clearly a huge conflict of interest that shouldn't be allowed to continue, although we shouldn't be surprised by this sort of conflict as it is apparent at most of our listed companies: Tim Saunders at Contact Energy, Lloyd Morrison at Auckland Airport and a host of other rapscallions and rascals at a whole host of other listed companies.
The shareholders at Windflow Tech should be worried too.
Government interference, as outlined above, can also change to the negative at a whim, should policy, Government or thinking change.
We have to remember, as shareholders in companies, however small or large our holding maybe, it is our personal property rights that are at issue here. Interference from individuals, entities, whether Government or private have no more rights than you or me and their influence shouldn't be able to be subscribed to the extent that they can change laws to suit their own agendas and line their own pockets.
In a provisional decision, it has been announced today that Fletcher Building Ltd [FBU.NZ] has been picked as the preferred builder for the new Eden Park revamp, valued at anywhere between NZ$190 million and north of $300 million, depending on who you speak to.
The stadium is to be rebuilt for the 2011 Rugby World Cup and construction is expected to start in August 2008.
If Fletcher's can negotiate a good deal for them, it is going to be good for the company. I'm mindful though that many stadiums built around the world have caused construction companies much grief, as changes to design, construction problems, and political meddling has put profits at stake and even put company futures at risk.
The new Wembly Stadium almost sunk the Australian builder Multiplex last year and the company building the new Vector Arena in Downtown Auckland lost big dollars on that project.
It is more than likely that the big New Zealand construction company will win the bid as it has the size and experience to be able to complete the project
Grab your seat for the game, Fletchers could be in for a bumpy ride.
Helen Clark, the Prime Minister of New Zealand, continues to have a problem with separation of her job from conflicts of interest and possible conflicts of interest.
Apart from the numerous personality, and socio-political conflicts she has in her day to day activities the topic up for discussion here is her and her Government's numerous conflicts of interest with the business world.
We have had recently Clark herself, Micheal Cullen and other Government Ministers interfering in Air New Zealand by making public statements that have affected the share price of the airline, likewise she and her Ministers erred again in 2006 when making inappropriate comments, on several occasions, about Telecom New Zealand that lost shareholders 100s of millions of dollars.
Most recently we have had Winston Peters, a Labour Government partner and lapdog making inappropriate comments in the media about influences they could use to stop the Auckland International Airport from being sold.
The most glaring example and probably least known, is the conflict that arises from Jeanette Fitzsimons from the Green Party and her major shareholding in the listed NZ windfarm owner , manufacturer and developer, Windflow Technologies.
Fitzsimons is a partner to the Labour Government and drives Labour's "Green Agenda" for them. Fitzsimons has been responsible for passing law and changing rules to give companies like hers an advantage over competitors and as a result she has financiallybenefited directly from her activities in Parliament. Jenette has a knack of forgetting to mention her large shareholding in Windflow Technology when dealing with such matters when doing Parliamentary business.
You cant get more corrupt and conflicted than that but she has a good role model for her modusoperandi in Al Gore, but that is another story.
If we get back to Clark's role in this though, not only is her Government culpable in the conflict of interest by allowing Fitzsimons to feather her own nest but she has also been directly championing the company with financial, moral and media support for Windflow Tech.
Helen Clark with Windflow Technology head Geoff Henderson,centre, and Derek Walker, chairman of NZ Windfarms, at the commissioning of NZ Windfarms' turbines near Palmerston North.
This sort of Parliamentary, legislative and Prime ministerial support for Windflow Tech is clearly a huge conflict of interest that shouldn't be allowed to continue, although we shouldn't be surprised by this sort of conflict as it is apparent at most of our listed companies: Tim Saunders at Contact Energy, Lloyd Morrison at Auckland Airport and a host of other rapscallions and rascals at a whole host of other listed companies.
The shareholders at Windflow Tech should be worried too.
Government interference, as outlined above, can also change to the negative at a whim, should policy, Government or thinking change.
We have to remember, as shareholders in companies, however small or large our holding maybe, it is our personal property rights that are at issue here. Interference from individuals, entities, whether Government or private have no more rights than you or me and their influence shouldn't be able to be subscribed to the extent that they can change laws to suit their own agendas and line their own pockets.
Protest March Victoria Square to Cathedral Square Wednesday 28 November 12.30. March starts 1.00pm. Organiser of the Auckland and Wellington marches John Boscawen will speak.
Get ready citizens of the South, it is now your turn to march against this attack by the sisterhood on your democratic rights to free speech and your right to criticise any sitting govt be it snivelling Lefties, National, Greens or any other colour of politics.
The passing of the Electoral Finance Bill into Law next month means your right to freely do that in election year will be removed.
I will not be able to legally write this blog!
The Greens said last week that this bill would allow more free speech. That ladies and gents is a bald faced lie, just like the one told by Helen"Teflon" Clark and Sue "I'm so cute" Bradford that the repeal of section 59(or the anti smacking bill) earlier this year wouldn't lead to parents being charged for smacking a child on the hand for being naughty, it has happened in a number of cases already.
Get out there Canterbury and protest for your right to protest against a Government that want to silence your voice.
There have been some good company results out this week. RymanHealthcare had a 20% rise in profit for the last half year and forecast another strong year in 2008, while Fisher and Paykel Health half year profit was down sharply because of repatriated funds in US dollars lower due to the weak US currency but sales and profitability before currency exchange were up strongly.
Part of a RymanHealthcare Village
Earlier this week, Mainfreight half year profit rose around 9% before abnormals and future guidance gave investors positive encouragement for their investment in the company.
OK, OK, so I'm blowing my own trumpet because I own shares in all these companies? Well, Yes and No.
While individually these 3 companies are doing well, with rising sales, profits and good future profits indicated, as a group they show that New Zealand listed companies are still doing well, despite all the international drama of market turmoil, rising oil, mineral, commodity prices and Al Gore putting his carbon footprint in his mouth again.
Investing long term in good companies always beats the likes of trading carbon fairy dust!
I'll be baackk
The Loan Terminator, Governor Arnold Schwarzenegger, is back in the news again this week, in a sequel to his Terminator movies that would have him eliminate Californian home loan debtors the pain of repaying their sub prime mortgages at normal interest rates by making the sweetheart deals they initially signed up for extend for a period of up to seven years.
The Governator terminates debt while looking cool at the same time.
The bulk of these "sweetheart" deals at very low interest rates were due to be recalculated in several months time but 3 lending institutions who have exposure to 25% of sub prime loans, Countrywide Financial Corp, GMAC, Litton Loan Servicing and HomEq Servicing, seem to have convinced Arnie that eliminating the inevitable collapse of borrowers next year and putting it off till 2014 is a great idea.
As I have ranted on before, these individuals, as sad as it is, simply need to bite the bullet and face the music now, instead of slowly dragging down the rest of us with them.
Arnie needs to go back to Hollywood and fight the bad guys not Terminate borrowers' and lenders' responsibilities to face their own debt woes.
Terminator 4 anyone?
The carbon fairy has no clothes on
In what is clearly gearing up to be one of history's greatest financial explosions and implosion when it all inevitably collapses, is news today that the carbon trading "market" tripled in size to US$30 Billion last year.
With this market built on failed "science", lies and spruiking by the likes of wealthy green investors Al Gore and Leonardo Di Caprio, like all markets built on such flimsy backgrounds the money made, and there will be billions, will be made by those that get on the greenwagon first:
Since co-founding Climate Change Capital in 2003, James Cameron and his business partner Mark Woodall have turned their company into a powerhouse in the burgeoning global market in greenhouse gases. Driven by the Kyoto Protocol on global warming, an accord Cameron helped write, this corner of the derivatives arena is growing as never before.
Clearly, Cameron and Woodall are smart cookies but these self interested scam artists, who have written their own rules and now profit from them by "investing" other peoples hard earned cash into worthless carbon credits will be the first to withdraw their own funds when the climate change hysteria is revealed for what it is, that the sun simply getting hotter.
A Carbon footprint recently traded on Ebay for US$1 Million.
I am old enough to remember similar things happening during the dot com era where mum and dad investors piled into worthless "businesses" and the big boys got out first before the truth about the bulk of silicon valley Internet companies hit the investment fan.
The same thing is going to happen with the carbon trading market.
Fletcher Building's got game
Artist impression of the new Eden Park
In a provisional decision, it has been announced today that Fletcher Building has been picked as the preferred builder for the new Eden Park revamp, valued at anywhere between NZ$190 million and north of $300 million, depending on who you speak to.
The stadium is to be rebuilt for the 2011 Rugby World Cup and construction is expected to start in August 2008.
If Fletcher's can negotiate a good deal for them, it is going to be good for the company. I'm mindful though that many stadiums built around the world have caused construction companies much grief, as changes to design, construction problems, and political meddling has put profits at stake and even put company futures at risk.
The new Wembly Stadium almost sunk the Australian builder Multiplex last year and the company building the new Vector Arena in Downtown Auckland lost big dollars on that project.
Grab your seat for the game, Fletchers could be in for a bumpy ride.
NZX Market Wrap
The benchmark NZSX-50 index, which yesterday ended below where it started the year, close up 16.8 points on 4071.0.
Turnover was light at $71 million.
"The over-riding theme was one of extreme caution," said ABNAmro broker Matt Willis. While value was starting to emerge, there was no rush to buy. Investors remained risk averse due to the US subprime mortgage crisis, which he said was a bi-product of weakening economy.
On the local scene, results of export stocks this week revealed the lagged impact of the high dollar was starting to hurt as currency hedges ran out. Companies were concerned about higher costs.
"Operating conditions are less than positive and that has followed through into sentiment."
However, retirement village operator RymanHealthcare picked up 2c to 207 after reporting a 22 per cent lift in half year net profit after tax to $34.7 million.
The main factor in the market's rise today was a 7c rise in top stock Telecom, to 427. Rival Telstra rose 6c to 536.
No.2 stock Fletcher Building pared its morning loss to 5c, ending on 1175, after it was confirmed as the prime contractor to revamp Eden Park.
NZ Oil & Gas eased back 2c to 110, having traded up to 113 in the morning, after gaining 11c yesterday on news estimated oil reserves for the Tui field had increased 30 per cent to 41.7 million barrels. That was worth an extra $200 million to NZOG, over time.
Sky City ended unchanged on 518 with possible bidders expected to show their hands early next week. However, share action suggests the market does not hold high hope for high offers.
Australian stocks mostly had a good session despite uncertainty surrounding tomorrow's election result.
Lion Nathan, which on Wednesday reported a strong result with good prospects for 2008, closed up 60 at 1100.
Goodman Fielder recovered some of its recent losses with a 9c gain to 230.
NZPA
NZ Dollar Wrap
Reuters currency rates
5pm today 5pm yesterday
NZ dlr/US dlr US75.62c US75.46c NZ dlr/Austdlr A86.25c A86.41c NZ dlr/euro 0.5060 0.5074 NZ dlr/yen 81.60 82.10 NZ dlr/stg 36.47p 36.53p NZ TWI 69.31 69.42 Australian dollar US87.64c US87.36c Euro/US dollar 1.4942 1.4870 US dollar/yen 107.89 108.84
Disclosure: I own Fletcher Building, RymanHealthcare, Fisher Healthcare and Mainfreight shares
A very interesting decision by the NZ Commerce Commission on Tuesday to give Whitcoulls the go ahead to buy the Borders book chains in New Zealand and Australia.
Border's Auckland Queen St Store
Given this outcome one could be forgiven for not thinking that either Foodstuffs or Woolworths should be able to get similar approval to buy The Warehouse chain. when a decision in the appeal to the High Court comes to light.
The approval for Whitcoulls to buy the 5 store chain in NZ is a similar scenario to the possible Warehouse buyout.
In Whitcoulls you have a dominant player wanting to takeover the superstore format that Borders is modelled on even before it has been given a chance to flourish under another independent player. Paper Plus is another dominant NZ player that is also interested. Dymocks, with quite large format stores and a much NZ smaller business has dropped out of the running for some reason.
Dymocks would have been the natural partner for Borders in NZ simply because of its small size.
As has been covered ad nauseum, Foodstuffs and Woolworths twin bids for The Warehouse are being made by two dominant grocery players in New Zealand and the Warehouse has recently kicked off development of a superstore format along the lines of Walmart's "supercenters" that include grocery lines and with three of these stores the format is in its infancy.
In Auckland City CBD the purchase of Borders by Whitcoulls will allow the combo company almost a monopoly in the superstore format, with the Whitcoulls store only a block away from Borders, you will see price rises for stock. In the rest of the country Whitcoulls and Paper Plus dominate the book and stationery industry.
If you use the CC rationale for allowing a Whitcoulls or Paperplus buyout of Borders and apply it to a possible Warehouse takeover by two dominant grocery players the similarities are spookily parallel ones. The Warehouse extra format is in its infancy, as is the Border's format and allowing Foodstuffs or Woolworths to purchase would by the CCs own standards be acceptable.
The nub of the Commerce Commissions argument in the Borders case seems to be that their large format stores don't lessen competition in the hands of a dominant player, so the same measuring stick must be applied in the Warehouse decision before the High Court. Extra format stores are unlikely to be a threat to other competition if purchased by a dominant player if you apply the Borders decision or they cant be much of a threat in themselves as a successful format in anyones hands. Therefore a positive outcome must be applied otherwise consistency in decisions at the Commission will be threatened.
The wait and outcome will be interesting and the High Court have a tough decision to make. However, they must apply the same rules to the Warehouse decision as the Commerce Commission have made this week in regard to Borders.
After yesterday's vote at Auckland International Airport [AIA.NZ] AGM a number of the original board was gone and replaced by a motley crew of local politicians, individuals with axes sharpened and ready to grind and a couple of incumbents only just scraping in.
The amount of mud slinging by the current elected directors aimed at each other in the media recently could well leave one thinking that turbulence in the board room will be derigeur.
Individual agendas are likely to be the order of the day, with newly elected Lloyd Morrison the person with the most to gain. Through his company Infratil [IFT.NZ] and a partnership with the NZ Super Fund, Morrison owns around 9% of AIA. He also owns a majority stake in Wellington Airport and is behind the proposal to build a second airport in Auckland.
Morrison's conflict of interest is clear but his agenda isn't. He made a bid for the Airport earlier this year at a share price of less than what Dubai Aerospace was prepared to pay but said in the meeting yesterday that NZ companies had been "undersold in the past".
Auckland businessman Richard Didsbury, a director nominated and acting on behalf of Auckland City Council and John Brabazon, nominated by Manukau City Council but now stood down, are two individuals with political direction with Didsbury acting on behalf of his council to keep the airport in "New Zealand hands", whatever that means because it is currently a publicly owned company with shareholders living in many countries and Brabazon still possibly imbued with Manukau'sdon't sell at any price strategy.
Chairman John Maasland is going to have a difficult job getting anyone to agree on a single defined direction for the company as it goes forward because they all seem to have their own ideas as to where the company should go. Ego has raised its ugly head in the lead up to the directorship elections yesterday but it has no place in the board room.
What these individuals seem to have forgotten is that there are shareholders out there who haven't had decent representation over the last 6 months or so during a possible sale of the company. The 2 offers that were turned down outright by the board, Dubai Aerospace and the original Canada Pension Plan scenario should have been put to shareholders and then put to the vote.
Instead directors fell to local and national political interference and public opinion when the property rights of AIA shareholders should have been given preference for it is they who own the company.
The new board need to keep this uppermost in their minds every board meeting and business dinner and lunch that they have.
There is a march against the Electoral Finance Bill on Wednesday 21 November 2007. Assemble at Civic Square from 12 noon...March at 12.30PM. to Parliament.
Winston Peters was dressed immaculately as usual, at the Electoral Finance Bill protest, Queen St Auckland New Zealand November 17, 2007.
Winston was heard to say that he is only voting for the bill because his baubles of office told him to.
When asked by a TV3 Journo what his baubles had to do with anything Peters replied, "I didn't get where I am today without large baubles".
Peters got up and addressed the crowd but finished quickly when he soon realized that there were no TV cameras trained on him and everyone was under 40 anyway, so there were no votes to be had.
When asked about the fact that the bill, if passed, would stop free speech in an Election year Peters first blamed the journalist for asking such a profound question, then said the question of free speech for the general public wasn't a problem because he spoke for all New Zealanders and knew what they wanted anyway. He added, "what was really important was that he had free speech in an election year and what is more important than that?"
Going back to the bauble question, Winston was asked where he put them for this momentousoccasion because they were not at first obvious to the casual glance.
Oh, Winston curtly replied, like the mongrel of old, "Helen has them in a vice back in Parliament".
With that, his tail between his bauble less legs Winston slinked off more like a lap dog than the mongrel of yesteryear.
Well, my first political or any protest for that matter went off without a hitch today. No violence, no spitting, no guns, no hakas but plenty of well placed anger, at Helen Clark and the Sisterhood who want to pass the anti democratic Electoral Finance Bill, that will allow unrestrained spending of taxpayer dollars by Labour Pollies in Election year but the ability for private citizens to do likewise will be limited, otherwise the slammer for you buddy.
About 5000 protested the bill as they marched down Auckland's Queen St, not the 2000 reported in the NZ Herald. "1,2,3,4 we don't want your fascist law" rang out as the crowd centered down at Britomart after the half mile trek from the Town Hall.
Old people and young people alike got together on a sunny hot Saturday to protest what could be illegal next year.
I was expecting around 2000 but the crowd was at least double that.
There were banners that read "fascist" anti Clarke banners,a stuffed Winston Peters(how appropriate) New Zealand flags and individuals who symbolically had their mouths taped.
Speeches at Britomart included the organiser John Boscowen who mentioned a letter to the editor from Peter Davies, Helen Clark's Husband, who refuted that the bill was an anti democratic piece of filth and noted he was from the sociology department of Auckland University but had neglected to mention his relationship to the big cheese. My man Leighton Smith from Newstalk ZB was there, his first political protest too, he added that he didn't usually like to get involved in such things but felt so strongly about the cause that he just had to.
Touchingly there was also an 80 plus year old veteran from WW2 and Boscowen reminded the crowd what it was he had fought for and of course it was the same reason we were all there today.
Freedom and democracy. C Darren Rickard: Images & Content
Just a gentle reminder of the march against the anti democratic Electoral Finance Bill, which will stop free speech in election year and also allow the incumbent Government, in this case Labour, to spend taxpayers money to advertise in election year while others will be capped.
In 2005 Labour stole over $800,000.00 taxpayer dollars to buy the election, it was illegal and they got away with it by changing the law and were not punished. In 2008 it will be legal if this Stalinist bill is passed this month.
Those wishing to participate should assemble in Aotea Square from 10.00am with the march to leave at 10.30am and culminate at the bottom of Queen St at Britomart.
Rain or shine. Photos from the protest will be posted here.
The announcement yesterday of a possible listing on the NZX by New Zealand's biggest company, Fonterra, is the best news the New Zealand economy has had in generations.
Fonterra, a global milk products producer, manufacturer and exporter is a huge contributor to NZ Inc and the company has become a dominant force in the Global Dairy products boom.
It has now got to the point though, that it needs some serious capital to allow it to grow larger and compete with the likes of Nestle, Danone and Kraft. Fonterra's cooperative structure doesn't allow the company to raise the capital needed to foot it with the other big boys as the dairy industry players grow in size, through acquisitions and mergers.
There has been much bleating by Unions and the NZ First Political Party that the proposal isn't a good idea but frankly as Unionists and pollies what the hell would they know about business.
This is great news for Fonterra and its long term future and excellent news for New Zealand investors as they will be able to participate in an industry that dominates our export revenues and economy and contribute to the investment of a great business.
TheNZXis going to be more indicative of our economy by having Fonterra listed, possibly sometime in 2010, and the index will get the much needed boost that it has lacked all these years simply because of the impact the company has in our economy.
A cash cow indeed.
Sky City twiddling thumbs in the back row
Sky Tower, Auckland, NZ
News this week that Sky City Entertainment(SKC) is not likely to be able to tell the market anything about the 3 companies currently looking over SKC's books and what their intentions will be until "after Christmas" leaves this writer wondering how far management can stall shareholders any longer.
The timetable initially stood at an announcement at the end of October, then mid November and now after xmas. It makes me wonder how serious prospective bidders might be and doesn't inspire confidence in a good price for the company or a sale at all.
In other company news, contenders for SkyCity Cinemas - which could be worth as much as $116 million - are understood to include Australian firm Greater Union, US-based Reading Cinemas and Hoyts, previously a partnership between PBL and West Australian Newspapers, which was purchased by Australia's Pacific Equity Partners.
The vagaries of management speak are truly alive and well at Sky City, this from the company November 14:
SkyCity said yesterday it did not expect to progress with the cinema sale before the end of November.
What the hell does that mean, will they give a bloody deadline?
Sky City Management surely must be nominees for the worst board for 2007.
Morrison speaketh with forked tongue
I'm having trouble taking Lloyd Morrison seriously.
Morrison, the chief executive of Infratil, a director of Wellington Airport and a backer of a second airport for Auckland at Whenuapai has $300 million invested in Auckland Airport(AIA) on behalf of Infratil and the NZ Super Fund.
The trouble with this though is that Morrison's directorship of Wellington Airport and backing of a second port in Auckland put him in direct conflict with his large ownership of AIA shares and his ambition to get a seat on the AIA board.
Morrison says there is no conflict but it doesn't take a genius to figure out that he is staining credibility paper thin if he thinks that.
He was caught out today on National Radio Business today and last week when he said that the Canadian Pension bid was too low at $NZ3.65 and mentioned a price north of 4 bucks per share as being fair value for the company.
Interesting take when you consider than Infratil was involved in a bid, earlier this year, that was rejected by the board as too low, probably below the Canadian bid.
Morrison is a savvy investor and he is using subterfuge, doublespeak and attacking competitors in his bid to get some sort of control in the Auckland Airport deal/s.
While the AIA board hasn't been straightforward with shareholders over the last 8 months of this protracted bid for control of the port, Morrison's intentions are not clear and he cannot be trusted and shouldn't be elected to the AIA board on November 20.
In takeover news, Canadian Pension Plan Investment Board (CPPIB) has made a formal bid for AIA today.
The key terms of the offer are as follows:
Offer Price: The consideration offered for each Outstanding AIAL Shares taken up under the offer is $3.6555 in cash.
Partial Offer: The Offer is for 39.53% of the AIAL Shares not already held or controlled by the Offeror
Closing time: The Offer closes at 5.00pm on 13 March 2008 Partial Offer: The Offer is for 39.53% of the AIAL Shares not already held or controlled by the Offeror
Closing time: The Offer closes at 5.00pm on 13 March 2008
Hollow words, hollow competition
The owner of Share Trader and many other financial based sites in New Zealand threatened to "take legal action" over this revelation published in the Share Investor Blog a month ago and insisted it be removed and an apology made but as yet has failed to serve me with a writ.
This individual also made a threat of "legal action" over my use of "Good Returns Bookstore" banners on my site back in July even though I was legitimately using them as a genuineaffiliate.
Now I don't take kindly to threats and I am justly annoyed by this pest, but I guess threats ring pretty hollow when you use them as your modusoperandi when doing business and don't follow through.
Good Returns Bookstore, owned by Tarawera Publishing, continues to spam me with emails to buy their books, even though I canceled my affiliate membership and Tarawera'sSharetrader continues to host my contributions on their site, even though I didn't sign up to their new draconian membership terms and conditions(see the fee for spamming!!) as part of Tarawera taking over the site.
*Incidently you can buy all types of finance books from my Share Investor Bookstore, the range is many hundreds of times larger and at least 30% cheaper than Good Returns Books.
Sort yourself out Phil!
Learning to love China
World markets have been nervous again over the last few weeks. The Dow has slipped from over the 13600 mark to just above 130000, oil has reached almost 100 bucks, gold is over US$800 and the US dollar is doing an impression of a tiger moth with one wing.
Shakiness over future sub prime losses for banks and financial institutions have been blamed and to be sure there is more to come once sweetheart mortgage deals end but like any market jitters the market tends to overreact.
I think what could be happening now and we wont really know it for sure until we look back, is that we are partially seeing the start of the transition of dominance from the US as the financial and economic powerhouse to China. To be fair it ain't there yet but early signs seem to be showing the genesis of something akin to an economic transition.
The low value of the Yuan and the Chinese economy powering ahead means their economy will only power ahead in the future, while the US, a massive importer of foreign made goods is struggling as their dollar sinks and imports cost more.
Also the US as a safe haven for foreign investment is being eroded as their interest rates plummet and the cost of repaying debt to China gets ever more expensive.
The transition of America from a manufacturer to their home market and huge importer to a bigger exporter must come and will be easier to do as their dollar drops against their main trading partners.
It is then China will be seen as an opportunity to US manufacturers instead of a threat and the whole cycle of economic change will start again.
Let us remember that China was an economic powerhouse once before.
NZX Market Wrap
The NZSX-50 index, closed up 1.1 points at 4114.2, on turnover valued at $138.5 million.
Auckland Airport fell 3c to 301, after Canada Pension Plan Investment Board (CPP) submitted its formal cash bid for 39.53 per cent at $3.6555 per share. The airport company has also asked its advisers to seek other offers.
AIA shares had earlier risen to 308 before profit takers moved in. Turnover was a heavy $46.8m.
Fisher & Paykel Appliances rose 4c to 364, having gained about 30c since its first half result last week. The company is also considering selling its finance company to focus on its whiteware manufacture and retailing businesses.
Market heavyweight Telecom gained 4c to 425, Fletcher Building was up 8c at 1166 after being caned for most of the last week or so, and Contact Energy lost 5c to 885.
F&P Healthcare was up 3c at 328, Sky City gained 5c to 537 after getting knocked about yesterday after a broker downgrade. Sky TV lost 8c to 562, and Vector recovered some of yesterday's 6c loss to close up 3c at 233.
Air NZ, which has had a rough ride recently due to rising fuel prices, rose 1c to 202.
Among other stocks to gain, NZX was up 5c at 961, Freightways rose 2c to 380, Infratilwas up 2c at 293, Nuplex gained 5c to 725, and carpetmakerCavalier was up 3c at 315.
Hellaby Holdings lost 2c to 271, despite news it was trading ahead of last year, when it posted its first loss since re listing in 1994.
Rakon fell 5c to 515, Tower was down 4c at 204, HallensteinGlasson lost 3c to 445, Mainfreight was 5c lower at 710, and The Warehouse was down 2c at 522, marking time while waiting for a decision by the Commerce Commission as to whether Woolworths or Foodstuffs can make a bid to takeover the company.
How are your investments going and what approach do you have in your own personal financial situation?
Let me share with you some of the things that I do to make or save a buck. Most of them are elementary and you probably do them anyway but hey its my blog and Ill rant if I want to.
My employment gives me a very good income but that is no excuse to waste your valuable shekels because your make more money than others, a penny saved is a penny earned and all that.
I know people who earn way more than I but they seem to think that it is their mission in life to waste their money, simply because they can afford to. Either they have been wealthy all their lives or if self made, have forgotten how hard it was to get where they now are. Comfortable.
While I'm not stingy with what i earn I certainly haven't forgotten my humble beginnings.
That translates into menial stuff like not always buying the expensive brands at the supermarket, using all the peanut butter from the bottom of that Jar Mr and turning the lights off when one leaves a room. Boring I know but its money that you don't have to find elsewhere.
If you are in the market for a new car consider either buying a 1 year old version, where the depreciation has taken off a third of the cost and you still have a warranty and the vehicle has been run in or consider putting off the purchase altogether.
It is best buying an almost new vehicle but when you do you need to hold onto it for around 7 years to get the most economic value from it. After that it is better to ditch it because repairs could cost a mint, unless of course you bought a Ford , in which case you should replace the vehicle annually.
Of course when making major purchases like household goods, cars, boats and houses it doesn't hurt to bargain with the seller, with electronic goods especially, competition is cutthroat and the sticker price isn't the final one, they expect you to haggle, so do it, you might be surprised.
Of course it you are holding lovely folding stuff in your hand, you have an added advantage. Cash is king in most bargaining situations and discounts for green come on top of other bargaining tools.
When it comes to your bank, bargaining works as well. Try and negotiate term investment rates, mortgage rates and their other, often devious charges. It works for me , they can only say no.
Of course when investing in the stockmarket prudent investing there starts with your own research, the more you can do that the more likely you will insulate yourself from the sharks that swim in this pool.
Remember, your money is usually hard to earn in the first place and clearly prudent saving, through wise choices and bargaining your way through your financial life, will put you in good stead for a healthy financial future.
It will also allow you to spurge every once and a while, a natural antidote to my otherwise miserly approach to the art of living financially constrained!
