Thursday, September 11, 2008

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


The Warehouse Group @ Share Investor

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


Buy Toughen Up: What I've Learned About Surviving Tough Times

Toughen Up: What I've Learned About Surviving Tough Times

Toughen Up - Fishpond.co.nz





c Share Investor 2008

Wednesday, September 10, 2008

Winston Peters testimony to Priveleges Committee (UPDATED)

UPDATED: Peters contradicts Glenn's evidence: Tonight's privileges committee hearing represented Winston Peters' last chance to save his political career. Photo / Mark Mitchell

Tonight's privileges committee hearing represented Winston Peters' last chance to save his political career. Photo / Mark Mitchell

New Zealand First leader Winston Peters tonight directly contradicted evidence given to Parliament's privileges committee yesterday by Owen Glenn. The expatriate billionaire told the committee Mr Peters solicited a $100,000 donation in December 2005…More

VIDEO: John Campbell questions Owen Glenn




You may not like the big ears and bigger leftist icing on the political cake but this interview is good because the subject makes it so.

Owen Glenn answers some rather predictable questions from John Campbell but gets some excellent and revealing answers from this rather generous man.

It is compulsive viewing if you are following the Owen Glenn/Peter's donations saga.



c Political Animal 2008