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Wednesday, March 26, 2014

Funny, because it's true. Sad, because it's true


renetsil said...

Sick because it's true too :(

robertguyton said...

Selling Genesis - it's indicative, don't you think (like selling your mother)?

darkhorse said...

actualy I would have thorugh SOLD would be more like at as ther isn't much left to sell

Paranormal said...

Not to worry Darkhorse, we've still got lots more to sell. We can't afford not to.

When another Liarbour government get in (obviously not this time but eventually - potentially supported by the Greens, Mana, Dotcom, uncle tom cobbly and all) they'll destroy any shareholder value left in public entities. Just like they did last time.

darkhorse said...

your dimwittedness knows no bounds paranormal - doesn't it seem odd to you that it costs us less to borrow than it does to sell and rent back yet your wondrous leader sells. If you think these sales are a good idea why don't you practice what you preach and sell your house and car and have a party or holiday on the proceeds and then rent them back - no less stupid than what this government is doing

also don't you ever wonder why most of these asset sales end up costing the investor in loss of share value and then the nation a heap of cash to recover - airnz anyone

and look at telstra and telecom - what a way to get rich and to get a world class telecommunications system n- we have been wating six months to get fibre into our business premises even though it runs past the door and people used ot mock the old post office for taking three months plus they tried to sell us all sorts of hardware and services we didn't need and I mean large lumps of cash we will end up with a virtual phone system for one third of the cost that were were initially quoted and that didn't include the desk top phones they tried to offload onto us

The typical loss of share value arises mainly because in the end even the most rabidly free market politicians figures out that things like airlines and phone services and electricity are fundamental to the economy and need to be regulated if suffient service is to be provided and as they regulate they diminish the monopoly value of the infrastructure they sold to the mugs or else a few clever buggers fillet the asset, run it into the ground and then load it with debt on sell it to the gullible public and scarper (kiwirail anyone.

Paranormal said...

Darkhore you really are a numpty when it comes to business issues. So much of your rant is just plain wrong its hard to know where to start.

Why did Arinz share value plummet? Because the directors and management stuffed up big time with Ansett. Going into a market they didn't understand in a foolhardy way. Of course the shareholders should suffer when that happens. The Government (taxpayers) actually did very well thank you out of that. AirNZ was purchased back at less than it was sold for and now has returned more again to the government coffers. Bad example to use.

As for your fibre issues. There's possibly two issues there. The first is you need to understand you can't just splice into fibre like copper. You can only tap in at a junction. The second is what do you expect from a business that has so much government involvement and interference. Your comparison with the old post office is most apt. What is remarkable is you are surprised at the outcome.

As for ownership as opposed to renting - do you have any understanding of cashflows, opportunity cost, and capital returns? Businesses are there to return value to shareholders. What that value is and how they best do that is between the shareholder and the management.

But then again, in true Green fashion, it is clear you prefer not to actually address that and prefer to mandate how others should run their businesses.