Thursday, July 31, 2008

Winston isn't a conspiracy theorist: Yeah Right




From Whaleoil


Where's the proof? says Peters Video
Peters addresses allegations in Parliament Video

The Winston Peters saga keep rolling on and getting even worse for the great one.

In Parliament today he had a set to with Rodney Hide, questioning him at one point on the validity of a former girlfriend.

It really is embarrassing to see a member make a fool of himself so much but not think he is foolish in doing so.

There were more revelations today over undeclared donations back in 1999. This is in addition to a secret $100,000.00 plus gift from Owen Glenn, 10s of thousands from the Vela family and over 100,000.00 solicited by Peters from Sir Bob Jones.

Mad Hatter indeed.


Related Political Animal reading

Winston Peters lost in Wonderland
Winston Circus hangover continues
Discretion was the essential part of Vela Donation
Winston Peter's Glenn donation scandal: But wait, there is more!
Peter's hangs himself in February Paul Henry Interview
Peter's admits lying about Glenn donation
Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn
The Owen Glenn Story: Singing the same tune but hitting a bum note

c Political Animal 2008

Mikey loves Iti


c NZPA 2008

Much political capital was made last year by the Labour Party and mainstream media when John Key was seen to Hongi with Tama Iti. A criminal facing arms charges Labour called Iti, the John Key Hongi they said supported and legitimised a criminal.

What gives?

It doesn't really matter in the great scheme of things but Cullen especially, does have a record of saying and doing things after telling others they shouldn't.

Witness the meagre tax cuts he passed before the coming election. He has been saying for 9 years that the tax cuts that National have proposed were evidence of a morally bankrupt party and an "election bribe".

The Iti/Cullen love fest is just more of the same.

Can anyone tell me how you can recompense a party (buy maaaoorii votes) who didn't sign a contract(The Treaty of Waitangi) for perceived grievances related to that contract?

A contract these days it aint worth the paper it is written on(The Sonny B defence) and if you dont have a contract you get the benefits of having signed one anyway.

Ahh well, I might just sign up for that write off of $40000.00 in debt that Labour are contemplating, making it easier to break contracts with debtors.

Will someone gag me with a spoon, before socialism does.

c Political Animal 2008

Warehouse decision a loser for all

Discuss this company at the Share Investor Forum

In the absence of a detailed summary of the decision out today by the Court of Appeal to stymie a bid for The Warehouse by Foodstuffs or Woolworths Australia, I have to say I am surprised by the decision.

This from Paula Rebstock, Commerce Commission chairman

"New Zealand consumers know that more competition is needed in the supermarket sector. In coming to its decision to decline the acquisition the Commission considered that The Warehouse had already brought important new dimensions to supermarket competition, and potential competition, through its innovative supercentre stores."

What "new dimensions" have the Warehouse brought to Supermarket competition?

Answer? None.

It has 3 "Extra" format stores whose performance thus far has been underwhelming and its potential for the future is in doubt.

The Commerce Commission and Paula Rebstock have made a name for themselves over this appeal and it seems that was all this exercise has been about. Commercial realities have been left in the dust.

Either the legal team for the defence has lost an easily winnable case and or the Court of Appeal Judge is a knuckle dragging, dribble mouthed fool for making such an inconceivably out of touch decision.

Was the Judge off his medication that day?

That is the only conclusion that a sane individual can come to.

The Commerce Commission's legal team had only one string to their bow, the Warehouse Extra stores and their possible beneficial impact on grocery prices but they have no material influence in the supermarket sector and are unlikely to in the future. They have less than .05% of the grocery market.

Rebstock and her Commission have dragged this possible sale saga out for far too long, it has cost the three companies involved, the Kiwi taxpayer, The Warehouse,Foodstuffs and Woolworths shareholders and ultimately the New Zealand consumer.

Economies of scale can be brought to bear if one of the parties bought The Warehouse and that ultimately means cheaper grocery prices.

Unless a likely appeal to the Supreme Court is successful, New Zealand consumers will be the biggest losers.

Warehouse shares were down .60c to NZ$3.22 per share on 4.6 million shares today on the news.


Disclosure I own WHS shares


The Warehouse @ Share Investor

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 Court of Appeal decision in Commerce Commission's favour
Why did you buy that stock?[The Warehouse]
The Warehouse set for turbulent 2008
Commerce Commission makes a meal of Warehouse takeover
Warehouse Court of Appeal case lay in"Extras" hands
WHS Court of Appeal case could be dismissed next week
Borders decision an indicator of Warehouse takeover outcome
Commerce Commission impacts on the Warehouse bottom line
The Warehouse in play
Outcomes of Commerce Commission decision
The fight for control begins soon

Share Investor Forum-Discuss this topic


Related Links

The Warehouse Financial Data


Related Amazon reading

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c Share Investor 2008 & 2009

Warehouse Court of Appeal decision in Commerce Commission's favour

8.58am The Court of Appeal has overturned the High Court's ruling allowing rival grocery firms to bid for The Warehouse[WHS] by Foodstuffs and Woolworths Australia.

The Commerce Commission case argued that if either Woolworths or Foodstuffs bought The Warehouse, it would result in a "substantial lessening of competition".

This was after the Commerce Commissions case was defeated in the High Court in 2007 and an appeal against that decision was lodged earlier this year.

Trading in The Warehouse shares was thin yesterday, July 30 (NZ time), and price movement was mildly upwards during intra day trading but finished flat, so no pre announcement indications could be gleaned from the markets.

The sale process began almost 2 years ago but has been stymied by the Commerce Commission due to their contention that a purchase of The Warehouse by either Foodstuffs or Woolworths would impact to the detriment of food consumers. The Warehouse, Foodstuffs and Woolworths all argue that The Warehouse food offerings are not significant or successful enough to warrant a Commerce Commission appeal

It is likely that Foodstuffs, Woolworths and The Warehouse will appeal the Court of Appeal's decision to the Supreme Court in Wellington.


The Warehouse @ Share Investor

Why did you buy that stock?[The Warehouse]
The Warehouse set for turbulent 2008
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

Disc I own WHS shares


c Share Investor 2008
& Cartoon Emmerson 2008

Starbuck's New Zealand cup doesn't runneth over


News from the USA that around 600 "unprofitable" company owned Starbucks stores are to be closed and that similar things are happening in Australia, with 61 of 84 stores closing, is bad news for investors in the franchisee operator of Starbucks in New Zealand, Restaurant Brands [RBD.NZ].

Bad news because it is an indication of how many of RBD's franchised stores are losing money.

"Any announcements internationally won't have any effect on the way we do business in New Zealand...the New Zealand operation continued to trade strongly", said Paul Wood, GM of Starbucks in New Zealand, in reaction to Howard Schultz', Starbuck's global CEO, announcement of the closures.

Regular readers of mine will know that I don't agree with Paul Wood's contention. I would argue that the Schultz announcement confirms my suspicions that Kiwi Starbucks are losing money.

Paul Wood maybe right when he says the local Starbucks is "trading strongly", although that is up for argument- small sales increases have come from price increases which haven't kept pace with inflation and rising business costs- but what he didn't say was if they were trading profitably.

RBD's Starbucks are suffering from excessive cost structures. Their leases, especially in their high profile stores, are prohibitively high. That has been the case since the brands arrival here in 1998.

Of late, other running costs have impacted on the size of the loss. Rising coffee, electricity and labour costs are among just a few attacks on the expensively priced coffee makers ability to make money.

The increasing amount of competition for the coffee buck in New Zealand has also made things look bleak for any promise of a profit anytime soon.

McDonalds especially has taken custom off Starbucks. Their lower cost and sometimes better quality offerings has had a severe impact. The fact that the Big Mac has a drive through service while Starbucks is devoid of both that and fast in-store service means revenue increases will not come until something has changed.

There is also a myriad of other competition like Robert Harris, Gloria Jeans, Dunkin Donuts and a whole host of smaller chains, "coffee-to-go" installations and independent operators. Most of which were not around when Starbucks opened here 10 years ago.

After years of losses, the promise of profit for Restaurant Brands Kiwi Starbucks looks even further away than it did at its introduction to this country. Its only hope for real increased sales is to dramatically increase store numbers but that is the very reason the brand got into trouble here in the first place-too much overhead not enough custom.

As RBD are contemplating selling their loss making Pizza Hut chain, the only hope for pegging back theirs and their shareholders losses from the Starbucks brand is for it to be sold as well.

The alternative will be a similar announcement to that of Howard Schultz.

Starbucks[SBUX] shares were up 76 cents at US$14.99 on the New York Stock Exchange and at near year lows look good for a recovery under the eye of the founder once again.


Restaurant Brands @ Share Investor

RBD gives KFC a push
McDonalds 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


Related Amazon Reading





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c Share Investor 2008

Wednesday, July 30, 2008

Winston Peters lost in Wonderland



Rodney Hide (left) and Winston Peters. Photos / Michael Craig, Greg Bowker

Rodney Hide (left) and Winston Peters.


Winston Peters used a couple of quotes from Alice In Wonderland in his members speech less than an hour ago.

One quote he used was directed at journalists and politicians from the National Party and its central meaning goes something like this:

If you don't know what you are talking about shut your mouth.
Winston Peters, July 30 2008

I would counter that with another quote from Alice in Wonderland, made by Alice herself. It is a direct quote:

"If I had a world of my own, everything would be nonsense. Nothing would be what it is, because everything would be what it isn't. And contrary wise, what is, it wouldn't be. And what it wouldn't be, it would. You see?"
Alice

While we are quoting Alice in Wonderland, It is clear that Winston Peters has been taking his response to serious accusations of corruption, bribery and secret donations from a fairy tale.

In his members speech today he attacked the media, opposition politicians, and went into great detail. When asked where donations to his party went though-why secret donations were not declared, who they came from and what was done for the donors to get the donations, Winnie the Pooh is deathly silent.

Peters clearly lives in a world where up is down, down is up, black is white, white is black and secret donations to an individual or party are not really donations but gifts of little consequence.

Back to Alice.


"What is the use of a book, without pictures or conversations?"
Alice

Helen Clark should be asking for more from Peters but continues to live in Wonderland herself. She simply wants to stay in power.

This leaves the public asking themselves when they will get answer from Winston Peters and Helen Clark. It leaves us all feeling:

"Curiouser and curiouser!"
Alice

The last word though should be left to the Mock Turtle from Alice In Wonderland, for it sums up our collective thinking to Winston Peters and his denial of corruption in the face of clear evidence and his repetition of an attack mantra upon his accusers.

"What is the use of repeating all that stuff, if you don't explain it as you go on? It's by far the most confusing thing I ever heard!"
The Mock Turtle



Related Political Animal reading


Winston Circus hangover continues
Discretion was the essential part of Vela Donation
Winston Peter's Glenn donation scandal: But wait, there is more!
Peter's hangs himself in February Paul Henry Interview
Peter's admits lying about Glenn donation
Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn
The Owen Glenn Story: Singing the same tune but hitting a bum note

c Political Animal 2008

Tuesday, July 29, 2008

Don't forget Money Managers

In the wake of big coverage of late over the collapse of Hanover Finance last week and 25 other finance companies going to the wall, I thought I might revisit a subject that I have covered since I started writing on the Internet.

Doug Somers Edgar, his Money Managers (MM) company and the myriad of companies within that structure-some of them second rate finance companies-that "lend" money to each other have a host of similarities to some of the finance companies that have collapsed over the last 2 years.

Inter-company lending is just one factor that Money Managers uses to not only clip the ticket but to finance risky lending for dubious projects, to companies closely affiliated or part owned by MM interests. Many projects have fallen over, just do a Google search of Doug's full name and you will find a long list, he does when searching for individuals to sue and has landed on Share Investor.

That is where we get to the crux of my column today. We have seen alot of ballyhoo and publicity over the Eric Watsons and Rod Petricevics of this world and their part played in finance company losses, and rightly so, but our friend Doug Somers seems to have been largely lost in the sheer number of collapses.

While other financial collapses have made top of the bulletin news casts and front page mainstream coverage, Doug's MM gets coverage in blogs and weighty financial tomes such as the National Business Review.

I dont fully understand mainstream medias hands off attitude to Money Managers and their money magician former svengali and now minor shareholder, Doug Somers Edgar.

Lets correct the balance here then.

Just this last Sunday 27 July, in the wake of the Hanover collapse, NZ$ 60 million has been put at risk from Money Manager's Totara First Mortgage becoming insolvent and repayments to investors suspended

At the beginning of June 2008, the latest in the massive First Step losses reveals a slowdown in promised repayments to out of pocket investors. There is NZ $38 million lost and $108 million of investors money at risk in the wound down First Step vehicle. Some of the money at risk is owed by a MM owned company Club Finance.

As the economy moves deeper into recession and individuals and companies who have lent money off finance companies and related party lenders, some of them within the Money Managers fold, have trouble paying back money, there will be further losses incurred by investors in Money Managers.

Keep it tuned here.

Related Share Investor reading

Money Managers First Step gives investors the middle finger
Money Managers First Step saga: 3 Story wrap

c Share Investor 2008

The Winston Circus hangover continues

Winston Peters

Winston Peters

Peters faces questions over donations in Parliament

"This whole affair is a shameful episode of dirty politics."


Winston Peters July 29 2008



You bet it is, but it is Winston Peters that has made the scandal over his secret donations "shameful" and "dirty".

In the face of overwhelming evidence to the contrary, that Peters has in fact accepted secret donations from wealthy backers, this Minister has fudged the whole issue and wiggled out of the crapper by obfuscation, omission of fact and legalese. Everything but the truth.

Peters has lied. That is clear to most, except the Prime Minister, who has given her full backing to to him so she and her Labour Party can keep their last grip on power, which is quickly slipping from their fingers.

In Parliament today Peters continued the circus and came out against National's Craig Foss for having a conflict of interest owning shares and Greens co-leader Russel Norman for having an affair. Vintage Peters.

He refused to clear up the mounting accusations made against him.

The minority Labour government would topple if Peters was sacked for his failure to clear up his corrupt actions and Clarks already tattered reputation for her own law breaking and lies is further stretched because of her support for her Foreign Minister.

Corruption like this would lead to the sacking of most individuals in private employment situations.

It appears once again though that politicians, especially those from the left, are exceptions to this accepted rule.

Related Political Animal reading

Discretion was the essential part of Vela Donation
Winston Peter's Glenn donation scandal: But wait, there is more!
Peter's hangs himself in February Paul Henry Interview
Peter's admits lying about Glenn donation
Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn
The Owen Glenn Story: Singing the same tune but hitting a bum note

c Political Animal 2008

NZ Herald Digipoll: July 29 2008

The latest political poll shows the trend that started in polls from August 2007. A wide gap of support between National and Labour. National has been ahead in the majority of polls since that date and has consistently polled above a 20 point lead over Labour.

There were several polls out 9 days ago that suggested a claw back by Labour but the Roy Morgan Poll from that weekend showed the continued trend that today's Herald Digipoll shows.

Labour's destruction in the 2008 election.

It will be very interesting to see polls out after the scandal surrounding Winston Peters and his corrupt secret donations from big business and Helen Clarks tacit support for him and this corruption.



5:00AM Tuesday July 29, 2008
By Paula Oliver
John Key has a 3.1 per cent lead over Helen Clark in the preferred PM stakes. Photos / Alan Gibson, Sarah Ivey

John Key has a 3.1 per cent lead over Helen Clark in the preferred PM stakes. Photos / Alan Gibson, Sarah Ivey

National has widened its lead in this month's Herald-DigiPoll survey, recording its highest support in a year, while Labour has dropped to just above 30 per cent with the election no more than 3 1/2 months away.

The poll is the first to be completed since New Zealand First leader Winston Peters became embroiled in fund-raising controversies, but his party has gained slightly and his personal rating has dropped only marginally.

National leads Labour by 24.6 percentage points - reversing signs of a Government comeback in other polls.

National has risen half a percentage point since June to 55.4 per cent support, while Labour has dropped 1.6 points to 30.8.

The only other party to get across the crucial 5 per cent threshold to enter Parliament is the Greens, with 5.5 per cent. But New Zealand First, at 4.1 per cent, is edging closer.

National would govern alone if the poll were translated into seats. The election must be held by November 15.

Continued

Related Political Animal reading

TV One Colmar Brunton Poll: July 20 2008
TV3 News Poll: July 20 2008
Fairfax Neilson Poll: July 19 2008
Roy Morgan Poll: July 18 2008

c Political Animal 2008

Monday, July 28, 2008

Stocks on my Watchlist: NZ Farming Systems Uruguay

On Saturday night I was watching New Zealand's TV One, a conservative channel with middle of the road programming and an audience of mostly over 50 year olds. I'm not there yet.

What I saw at 7.00pm was the channels longest running show, Country Calendar. The show has been running for my whole life, slightly longer than 40 years.

I haven't seen country Calendar for many years but used to regularly watch it in the 70s and 80s.

From my memory it has always been about innovative farming and new ways to make farming easier and therefore increasing the bottom line.

I have checked in periodically over the years and have lost interest because it seems to have lost its focus, for me, on its essential businesslike thrust and become just another "lifestyle show".

Last Saturday I was blown away though, transfixed on the programme as I used to be so many years ago.

The show was about PGG Wrightsons Ltd [PGW.NZ] push into dairy farming. In partnership with its stake in NZ Farming Systems Uruguay Ltd [NZS.NZ] NZFSU, which is managed, part-owned by Wrightson and listed on the NZ Stockmarket, this New Zealand company is forging a new frontier in farming outside its familiar home environment.

As many New Zealanders might know, dairy farming in New Zealand has become big business. It is an industry that contributes a massive amount to our export earnings.

However higher costs of production, labour, land cost and development,inadequate milk supply to meet world dairy demand now and into the future, an NZ dairy sector dominated by a major global milk supplier in Fonterra short of supply, and a whole host of other rising business costs mean the cheaper cost of dairy farming in places like Uruguay make the future of NZ Farming Systems very exciting.

If we look at the way New Zealand's biggest company Fonterra operates, we see that they control a large amount of the worlds milk supply. Much of that milk supply comes from outside New Zealand because we simply cannot produce enough milk solids to keep up with world demand for dairy produce.

NZFSU is a great first step for a listed New Zealand company to take a part in the growing dairy boom. India and China are increasingly becoming dairy consumers and investors in NZFSU will be well placed to reap the financial rewards as the market becomes more mature in Uruguay.

The cheaper cost of doing business in this infant market, with lower land, labour, tax and other ongoing costs, and its geographical position closer to already big dairy consumers like mainland USA, give clear business advantages to the early entrants into new dairy producer markets.

Unlike Fonterra though, mum and dad investors are able to take a stake in NZFSU by buying a chunk of its listed shares.

Fonterra shareholders, dairy farm owners, decided to put off a partial float of their company in a meeting held last year, so buying NZFSU or PGG Wrightson shares is the only way kiwis can get a stake in New Zealand's biggest industry.

It may well be one of the best long term investments one could make considering current and future dairy demand.


Related Links

NZ Farming Systems Uruguay - Investor relations
PPG Wrightsons


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c Share Investor 2008

Sunday, July 27, 2008

NZ HERALD: John Key-Part two

3:00PM Saturday July 26, 2008By Carroll du Chateau, Paula Oliver and Eugene Bingham

Key giving his State of the Nation speech this year. Photo / Martin Sykes


Part One of the John Key story
John Key in photos
John Key in his own words
Parliament's $50m MP
'I'm more liberal than I look'
John Key Timeline

For someone whose career had been a series of champagne glass-chinking highs, John Key's first day in Parliament was a shock. Flushed with his victory in Helensville, he was almost jumping out of his skin at the chance to get started on the next part of his life plan. The first day of his journey to be Prime Minister.

And he walked into a blood bath.

The country had been brutal in its judgment of National in 2002, its support on polling day collapsing to 20.9 per cent, the 66-year-old party's worst-ever election result.

Amid the carnage, Key had been the bright spot. Auckland's Westies had reacted well to the new face with its big smile and a man willing to roll up his sleeves and hammer together his own hoardings. As it had earlier in his life, Key's self-confidence and willingness had paid off, and he won the Helensville seat by 1705 votes.

On the Tuesday morning following the election, Key flew to Wellington for his first caucus meeting. "I went in feeling euphoric and left feeling depressed," he recalls.

The departing MPs, some retiring, many defeated, stepped up to receive their farewell gift (a silver tray), said their farewells, and left. The survivors and the few newcomers - Key, Don Brash, Judith Collins, Brian Connell and Sandra Goudie - huddled together.

It was a sober introduction to Parliamentary life for this retired merchant banker. Last week, in part one of this project, we told his background story, the steps he took to reach Parliament. This week we examine Key's rise to the top of the party and explore what he stands for.

Key achieved his goal of getting elected, even as voters mauled his party. His longer term ambition to be Prime Minister is now within reach. But which John Key will emerge? The centrist figure who has embraced so many existing policies that his critics label "Labour-lite"; or the career banker and money-man, who linked fast economic growth with fewer holidays for workers (two weeks' annual leave, in fact), said he could not see any reason to own Air New Zealand, and accused some DPB mothers of "breeding for business".

In a little more than three months, New Zealanders will know if Key occupies the Beehive. The bigger question is will they know what to expect from him? In this, the second part of our far-reaching examination of the 46-year-old, we push past the window dressing to reveal what he believes in and how he operates.

We have read hundreds of Key's speeches, trawled through the Parliamentary records of his questions to ministers, and pored over interview transcripts dating back to the start of his political career. As well, we have interviewed dozens of MPs, including those from other parties in an attempt to glean as full a picture as possible. Those interviews are among about 100 we have now undertaken as part of this project.



Related Political Animal reading

Part One of the John Key story


View as a single page

c Political Animal 2008

Saturday, July 26, 2008

Images of the week: Winnie's merry dance




From Stuff.co.nz Ahh, my only friend.



The relief from the media storm that hit Winston Peters on his return from Singapore is written all over his face in this picture of himself and his new mate Condelezza Rice.



Peters after facing media on his return to NZ from Singapore, showing the strain.








If Peter's corrupt practices werent so serious his performance would be one of the great stand up comedy acts rivaling the Flight of the Conchords and John Clarke combined.


c Political Animal 2008

Vote on the Political Animal Pre-Election Poll

Vote on the Political Animal Pre election poll.

So far votes are heavily in favour of a National Party landslide, with an average vote of 56%, with Labour behind on around 12% of the vote. Act comes a close third.

You have two votes of course. Some haven't voted in both P. A. polls but there is your Party vote and Constituency vote to cast.

Vote below on Political Animal Pre-Election Poll - remeber you have two votes

Party Vote



2008 New Zealand General Election - Check your enrolment status


Friday, July 25, 2008

Share Investor Forum July Giveaway (UPDATED)

Join up to the New Share Investor Forum, make a valuable post in the "market" section of the site and go into the draw to win the following prize. Current members are also eligible to enter the giveaway by simply making a post.

For every additional friend that you refer to the Share Investor Forum you get another chance in the draw.

The Economist is an excellent read, devoid of the usual leftist drivel that one finds in the bulk of the worlds financial media.


The Economist 6 month subscription valued at US$60.00(BUY IT HERE)

Image

THE ECONOMIST is a weekly news and business publication written for top business decision-makers and opinion leaders who need a wide range of information and views on world events. It explores the close links between domestic and international issues, business, finance, current affairs, science and technology. Regular editorial departments include American Survey, Asia, Europe, International, Business, Finance, Science and Technology, and the Arts. In additions, The Economist also publishes special monthly editorial surveys that focus on industries, markets or countries.


**The competition is valid from Tuesday 1 July 2008 up to and including July 31 2008, Pacific GMT + 12 hours.

c Share Investor 2008

John Key's success should be celebrated

The 2008 NBR Rich List is out. I suspect most Leftists will be looking at the list with a large amount of jealousy and an unhealthy level of suspicion.

Your Eric Watsons and Michael Fays of the list do have a huge amount of tarnish to their wealth. Watson behind more losses for investors, including the recent Hanover Finance collapse, than the All Blacks at World Cups and Fay milking New Zealand Taxpayer assets for his own personal joy, but most on the list got there because of intelligence, a small quotient of luck and most of all a great deal of hard work and stubborn perseverance.

I myself look at such people with a positive curiosity. I don't think, who did you rip off to get where you are but how did you manage to get where you are?

We got alot of political capital made today from the left, about a possible future Prime Minister, in John Key, about being at number 167 on the list with a personal fortune of around NZ50 million, but being a success in life and coming from such humble beginnings, like the number one lister, Graeme Hart, will make Key excellent Priministerial material.

Key is aspirational as Helen Clark is institutional. People like Key should be held up as examples to others of how success can come from hard work and if even if your background is poor economically, as John's was, you can still get there without having to rely on the State for life, as Clark would have someone like Key and his mother, dependent rather than independent.

In these tough economic times, that Labour have made considerably worse by their high taxes and wasteful spending, we need a leader that understands economics, markets and how business works and functions, something that is a mystery to most in the Labour Party, and especially Michael Cullen and Helen Clark.

John Key's financial acumen will be a benefit to the country and his success in life is clear evidence that he is the right man for the number one job in New Zealand.

Related Political Animal reading

Pointing fingers in the playground

c Political Animal 2008

Take an early poll Helen

The latest outburst by Winston Peters today at a press conference staged by him to defend the indefensible; the Owen Glenn, Vela and Bob Jones donations, all clearly made and all clearly denied in various degrees by Peters comes at a crucial time for Peters, his NZ First Party and Helen Clark and the Labour Party.



Winston Peters denies any wrongdoing TV3
Statement from Winston Peters
Winston Peters faces media


The accusations made against Winston Peters, with written proof in all three cases, are sackable offences for a Cabinet Minister under the terms of Labour's own cabinet manual.

But with some crucial Labour legislation, like the economy wrecking Carbon Credit trading law to pass before an election, the Prime Minister wont push Peters because it will mean an early election.

More proof of course that Clarks politics and lust for power have preference over rules, the country and its laws.


Related Political Animal reading

I didn't give Winston Peters a donation

Discretion was the essential part of Vela Donation
Winston Peter's Glenn donation scandal: But wait, there is more!
Peter's hangs himself in February Paul Henry Interview
Peter's admits lying about Glenn donation
Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn

c Political Animal 2008

2008 NBR Rich List

The 2008 NBR Rich List is out. I suspect most Kiwis will be looking at the list with a large amount of jealousy and an unhealthy level of suspicion.

The NBR says Mr Key's well-known rag to riches story sees him owning properties in Auckland, Wellington, Omaha Beach, as well as an apartment in London and newly acquired $US3.25m holiday home in Hawaii.

Continued

Rich List to 10:

1 Graeme Hart $6 billion

2 Todd Family $2.6 billion

3 Eamon Cleary $2.1 billion

4 Christopher Chandler $2 billion

4 Richard Chandler $2 billion

6 Goodman Family $1.64 bilion

7 Lynette Erceg $1.4 billion

7 Stephen Jennings $1.4 billion

9 Wade Thompson $750 million

10 Sir Michael Fay $700 million

10 Douglas Myers $700 million

10 David Richwhite $700 million.


NBR @ Share Investor

2010 NBR Rich List
2009 NBR Rich List
2008 NBR Rich List
NBR Headlines

Share Investor Forum-Discuss this topic


From Fishpond.co.nz

Every Bastard Says No: The 42 Below Story

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c Share Investor 2008

Thursday, July 24, 2008

Hanover Collapse: It was just a matter of time

In a post I wrote on October 5 , as part of the 2007 Friday Free for all series, I had the following story about the impact of Finance companies falling over. Hanover was picked as one of the dodgy ones.

If you were watching the TV over the last few weeks you would have noticed that the saturation advertising the Hanover was running had stopped. That is because they were insolvent.

This will not be the last one to go. All prospective investors in finance companies should be very wary about putting their hard earned dollars at risk.

Think seriously about not reinvesting if you already have money in this sector. Try a term deposit instead.


Financial Impact-from Share Investor's Friday Free for all: Edition 6

The fallout from the dodgy finance company industry rolls on again this week.

Hanover Finance, one of New Zealands biggest finance companies is to cut its Australian staff from 44 to 32.

Hanover has been busy re branding itself with an expensive advertising campaign as a warm , friendly, safe and solid industry player.

I'm still a little wary over this and other companies and their long term future in lending.

Even Hanover's size wont protect it from going under and there are rumours going around about its stability.

Even the State Kiwibank, the loss making division of NZ Post, has reportedly done 6 million taxpayer dollars in the Northern Rock collapse in the UK. One has to wonder why it was invested there.

Auckland-based investment firm Clegg & Co Finance has been placed in receivership this week. NZ $15 million of investors money is at risk.

On August 28 Brian Clegg, the director of Clegg and Co, wrote to investors written under a Classic Finance letterhead:

He writes about the publicity surrounding the collapse of finance companies, but believes his company is one of the "safe" ones, because it was "still operating profitably and successfully in accordance with our lending policy", and had kept out of high-risk lending.

In yet another collapse, investors in Five Star Consumer Finance heard today that they would expect to receive back 26c to 40c in the dollar on money invested but nothing forthcoming until December.


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c Share Investor 2007 & 2008


I didn't give Winston Peters a donation


c Blanch 2008

OK, who in New Zealand didn't give little Winnie a secret donation in the past?

Faster than you can say Hanover Finance has gone bust, the latest revelation from the Dom Post is that Bob Jones has given secret money to a trust administered by Winston Peters brother .

The donation has not been declared to election officials.

Like Labour, Winston Peter's NZ First has railed heavily against secret donations from wealthy individuals and companies but has nevertheless been at the centre of controversy himself by accepting secret money from Owen Glenn, the Vela Family and now Sir Bobby.

Last year Peters and Labour were at the centre of the passing of the Electoral Finance Act, an act they contended would stop these sorts of donations in the future.

In particular, fingers were pointed at the National Party over "big money" buying favours for their donors, but the fingers have clearly been pointing right back.

There is nothing like a little bit of hypocrisy to get the mind focused.


Related Political Animal reading

I think I love you Sir Bobby
Discretion was the essential part of Vela Donation
Winston Peter's Glenn donation scandal: But wait, there is more!
Peter's hangs himself in February Paul Henry Interview
Peter's admits lying about Glenn donation
Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn
The Owen Glenn Story: Singing the same tune but hitting a bum note

c Political Animal 2008

Tuesday, July 22, 2008

Close up Video[July 22] Peters on the attack!

http://images.tvnz.co.nz/tvnz_images/news2008/close_up/cu_winston_280208_232.jpg


WATCH INTERVIEW Close Up: Winston Peters-22 July 2008 (7:01)



The TV One, Winston Peters interview,live from Singapore, by Mark Sainsbury today, was more of the same bluster and invective from an individual on the ropes and going down for the count.

Peters denied that he received more that $NZ10000.00 from the Vela family, even though the Dom Post have evidence that the family have gifted $150,000.00 to Peter's interests.

He attacked the media again and said the latest accusations were "lies" made up by the media.

Watch the manila folder flapping incessantly through the whole 7 minutes of the interview.

He is usually unflappable.

Peters ended the interview with a wait till I get home taunt to his accusers.

I cant wait.


Related Political Animal Reading

Discretion was the essential part of Vela Donation
Winston Peter's Glenn donation scandal: But wait, there is more!
Peter's hangs himself in February Paul Henry Interview
Peter's admits lying about Glenn donation
Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn


c Political Animal 2008

Discretion was the essential part of Vela Donations

The better part of valor is discretion, in the which better part I have saved my life.
William Shakespeare (1564 - 1616), 'King Henry IV part I'

Well, Peters has been discreet, until found out by the NZ Herald and the Dom Post, but his fighting spirit in the face of political danger hasn't been for the better when it comes to his survival. Helen Clark's support of him is neither discreet or advantageous to her or her party.

In Parliament today Helen Clark defended Winston Peters (Video) to the hilt.

This is in spite of overwhelming evidence that Peters took secret money from Owen Glenn, spent NZ $45,000.00 of taxpayers money on his lawyer and accepted NZ$150,000.00 from the Vela Family, a wealthy family with interests in the racing and fishing industry.

Peters is the Minister for racing and gave tax breaks to the equine industry last year.

Giving backing for Peters leaves Helen Clark in a difficult position. In supporting him she has given approval for his behaviour and as he is part of the minority government it is really incumbent on her to make a move on Peters to remove him from his position.

She has done it with countless MPs over the years who have strayed from legal or moral lines and there have been many.

However, her Party relies upon Peters to support Labour's wafer thin grip on Parliament so it is unlikely she will do anything unless she has to.

It could lead to an early election if she puts Winnie's nose out of joint.

Coming on top of secret donations from Owen Glenn to Labour, revealed earlier this year, and Labour and NZ First campaigning heavily on secret donations in relation to their passing of the Electoral Finance Act, Ms Clark has a orgasm of egg all over her face given her support for her Partner in Parliament, Mr Winston Peters.


Related Political Animal Reading

Winston Peter's Glenn donation scandal: But wait, there is more!
Peter's hangs himself in February Paul Henry Interview
Peter's admits lying about Glenn donation
Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn

NZ Herald Link

Helen Clark defending Winston Peters in Parliament today-Video

c Political Animal 2008


Winston Peter's Glenn donation scandal: But wait theres more!


Seems the Dom Post has been digging for gold over the Winston Peters secret donations scandal as well as the NZ Herald, who kicked it all off a week ago.

The latest revelation is that Peters has received money from the Vela family, owners of large fishing and racing interests in New Zealand.

It is thought that the Vela Family could have given up to NZ$150,000.00 and it hasn't been disclosed and must be. Donations have been made in amounts under $10,000.00 so don't have to be disclosed when made separately. Again big money going to a politician who has campaigned against the National Party for doing similar things.

The donations do not appear in NZ First's annual declarations to the Electoral Commission. A clear breach of electoral law if it is true.

The Dom Post hasn't made a direct comment on the fact that Peters has had donations from a family deeply involved in the racing industry while at the same time Peters is the Minister for racing. Political Animal will. That is corruption at the highest level, even if Peters latest donations are legal.

A second revelation by the Dom Post has been that Mr Henry, Peters Lawyer, also received at least $45,000 for legal services - paid for by Parliamentary Service funds last year.

Winston has replied in typical fashion that taxpayer money has been used to pay his legal bills:

"That is a lie."

MPs Rodney Hide and Gordon Copeland have taken a breach of privilege over Peter's secret Glenn donations to the speaker of the house, Margaret Wilson, while John Key asked Winston to apologise for misleading the public, too soft for my liking, and our great leader, Helen Clark, backs Winston all the way - why wouldn't she, her party has been arse deep in the same sort of corrupt practices.

In characteristic political fashion, something he has no doubt learnt from Helen Clark, Peters is leaving the country on another bauble filled junket.

He hasn't given a press conference, as is his want, to clear things up, so will get away with commenting until he gets back.


Related Political Animal Reading

Peter's hangs himself in February Paul Henry Interview
Peter's admits lying about Glenn donation
Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn

c Political Animal 2008

Why did you buy that stock? [Kiwi Income Property Trust]

Kiwi Income Property Trust [KIP.NZ] was an addition to my portfolio earlier this year.

I wanted direct exposure to the commercial property market without actually buying a building outright.

Kiwi first came onto my horizon when I noticed they had ownership of the 40 level Vero office building in Downtown Auckland, and then my interest was piqued when their Sylvia Park shopping centre in Mt Wellington opened.


Why did you buy that stock?

Why did you buy that stock? [Hallenstein Glasson]
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Why did you buy that stock? [Pumpkin Patch Ltd]
Why did you buy that stock? [Ryman Healthcare]
Why did you buy that stock? [Michael Hill International]
Why did you buy that stock? [Mainfreight]
Why did you buy that stock? [The Warehouse]
Why did you buy that stock? [Goodman Fielder]
Why did you buy that stock? [Auckland Airport]
Why did you buy that stock? [Sky City Entertainment]


That is all I knew about the company. I like what I saw in its two high profile assets and went digging a little further. Kiwi have a good mix of quality properties, shopping centres and office buildings from Auckland down to Christchurch, among them; Northlands Shopping Centre, Centre Place Shopping Centre, North City Shopping Centre, The Plaza Shopping Centre, Downtown Plaza Shopping Centre, Langdons Road, PricewaterhouseCoopers Building, The Farmers Building and Countrywide Building.

In a property company one of the number one things an investor should look for is good quality assets. For me Kiwi fit the bill, so that for me is the main reason for me to make my small purchase of shares.

Coming a close second is management. Good properties are only going to get good returns over a long period if they are managed well and Kiwi property certainly is.

Since its creation in 1993 the company assets have grown to over NZ $2 billion, it has a great occupancy rate for its properties and it increased profit to just over $63 million in 2008, from just under $48 million last year.

The mix, age, quality of construction and geographical spread of assets show how good management have planned ahead.

The Sylvia Park shopping centre is a case in point. New Zealand's largest retail centre, it has room and space to grow and has over delivered in terms of initial expectations.

The only problem that they have had, and this seems endemic with shopping centre planners, they under estimated the need for car parking, something they are now remedying with a multi story car park now under construction.

Now another reason I bought this stock was that it was cheap in comparison to its share price high, at just over $1.70 per share, and its net asset value to capital market price. Its current market cap of NZ$872 million is less than the net asset value of just over $1.1 billion, so I had to buy.

In the Why did you buy that stock? series I have to ask myself if I would still buy today. At the current share price of $1.13 it represents excellent value and I would like to add some more, should my wife stop taking me off overseas and making me pay for it!

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10 Basic Buffet questions to ask before investing

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Recommended Amazon Reading

The Intelligent Investor: The Definitive Book on Value Investing. A   Book of Practical Counsel (Revised Edition)
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c Share Investor 2008