Pratt, Macquarie, Babcock, insider trading, Futuris, Telsta gravy train, tax loss selling and Background Briefing
February 2, 2010
Dear Mayne Reporters,
the market has fallen more than 1% again to hit a three month low as 2007-08 looks like being a shocker for investors that finishes badly.
The gloom is everywhere and I'll go he if Macquarie can get away its optimistic $1.2 billion BrisConnection float. Check out the propsectus and the press release that went out yesterday.
This one looks like the UEComm float of 2000, the last over-hyped dotcom offering that cost investors, including me, more than $500 million.
The biggest asset Macquarie has is its reputation for out-negotiating every government in the land on its Australian tollroad deals. They avoided all the disasters such as Rivercity, the Lane Cove Tunnel and the Cross City Tunnel and have now come back to the market saying "trust us".
One major infrastructure investor expressed surprise to me the other day that The AFR is yet to produce a critical article about the BrisConnections float and given Macquarie's record, they still might get it away and pocket $100 million-plus in fees, but given the recent performance of ConnectEast, Transurban and MIG, it is very hard to see it debuting at a premium.
Interestingly, the daughter of Macquarie's new tollroad king Michael Carapiet, Lisa Carapiet, is a junior reporter on The AFR but she doesn't cover the bank and we're not suggesting her presence is colouring the paper's coverage.
Supping at the T3 gravy train
The press will have a field day on the auditor general's report into the $200 million-plus T3 advisory gravy train. The SMH has a strong report already and Telstra's top brass will get blasted for seemingly threatening not to go on the roadshow unless they stayed in the most expensive hotels.
Not surprisingly, Telstra's head-kicking nowwearetalking.com.au website is silent on the story so far, but there will also be implications for some of the advisers involved.
Gavin Anderson, a PR firm headed up by and old flat mate of mine and Natasha Stott de Spoja's husband Ian Smith, won the spinning contract with a tender of $2.95 million which was more than double the next bidder.
Given that Smith is now reportedly looking at setting up a boutique Adelaide advisory firm with Alexander Downer, a factional Adelaide mate of then Finance Minister Nick Minchin, who ran the Telstra process, it isn't a good look.
Les Wozniczka: the new most sackable CEO in the country.
Futuris has announced a shock profit downgrade and its shares have plunged 28% to a 15 year low of 97c.
CEO Les Wozniczka is said to be one of the hardest men to deal with in corporate Australia. Rather than sacking those independent directors of Australian Agriculture Company, maybe its time the Futuris board or shareholders gave cranky Les the bullet.
Then again, with ABC Learning shares still wallowing at 73.5c, the $2 billion-plus lost by its investors leave Eddy Groves hard to knock off for sackability.
Dick Pratt vs Graeme Samuel
There has been plenty of media interest for comment on this amazing story about ACCC chairman Graeme Samuel trying to lock up cardboard price-fixer Dick Pratt for lying about his dirty deeds. I've been going harder than anyone, with the possible exception of this comment by Fairfax's Ian Verrender, as follows:
24 June 2008 - 774 ABC Melbourne with Lindy Burns
21 June 2008 - Sky Business View
20 June 2008 - 2UE Sydney with Jon Stanley
June 20 2008 - Crikey story
Is Everest Babcock & Brown telling it straight?
We've edited up the audio from the recent Everest Babcock & Brown hedge fund AGM, where the comment about only having two Babcock associated investments appears to contradict with what CEO Jeremy Reid told Michael Pascoe in The Eureka Report two weeks ago. Check out this package as you can also hear my commiserations for Reid on being the youngest person ever to fall off the BRW Rich List, and listen to a very interesting debate about Babcock's pass the parcel on long term bonds associated with the new Victorian Royal Children's Hospital PPP, which have lost their credit insurance wrap on close to $1 billion in bonds.
And speaking of The Rich List, our version has now had more than 15,000 page views and is easily the most popular feature on the site.
Listen to the humiliating Tabcorp pay backdown
We've been having some success dealing with companies to get records from past AGMs, so check out this Tabcorp package when they suffered a humiliating defeat at the hands of both proxy advisory outfits at the 2006 AGM, withdrawing two resolutions, including a big options package for now departed CEO Matthew Slatter. The proxy advisory firms will be amazed to hear the spin from former chairman Michael Robinson.
Setting the scene for Owen Hegarty payout showdown
Owen Hegarty's $10.7 million payout will be front and centre when OZ Minerals shareholders gather to approve it on July 18, so to set the scene have a listen to this audio file of the debate at the 2006 AGM when the remuneration report copped a 46% protest over because it moved the goal posts on some of Hegarty's options.
Remarkably, chairman Barry Cusack tried to claim such a protest was normal, which was complete rubbish. Check out this Oxiana package as we shape up for what should be a fascinating showdown.
Babcock implosion - all our coverage
Babcock & Brown shares have plunged and the financial engineers are now at the mercy of their bankers. Here is an up-to-date multi-media package containing all our interactions and commentary about the teetering specialist fund manager in Crikey, on ABC Radio and on Sky's Business View program last Saturday..
In terms of trading today, Babcock & Brown shares have recovered 7.7% to $6.25, whilst B&B Infrastructure dived 6% to a record low of 70c and B& Power slipped 0.5c to a new record low of 64.
The Wesfarmers warning about losing $20 million a month from the WA gas crisis is just the latest disaster for BBP which is responsible for allocating the limited energy supplies.
ASIC's latest insider trading prosecution
Everyone seems to agree that ASIC has been way to slack on insider trading over the years, so it is good to see they've charged a senior energy executive Mark Chatfield today, as Sean Parnell revealed in The Australian this morning.
Background Briefing special on shareholder activism this Sunday
Radio National's Background Briefing program will be airing a 40 minute program on shareholder activism in Australia this Sunday at 8am, so tune in because reporter Erica Vowles has hopefully put together the most serious media examination of the issue that we've ever seen after talking to most of the key players.
Hopping into the tax loss selling
The financial year is coming to a close and given our strategy of not cystallising losses, but always selling down if a $500 investment rises to more than $600, I was looking at capital gains of more than $16,000 for the year. For that reason, we've gone on a dog selling binge as follows, coinciding with some opportunistic buying which is revealed at the bottom:
Australian Education Unit: Bought 295 at $1.71 on August 10, 2007. Sold 294 at 59c on June 27, 2008. Loss: $369.11
Air New Zealand: Bought 210 at $2.40 on June 27, 2007. Sold 210 at 88c on June 27, 2008. Loss: $376.86
API: Bought 250 at $2.06 on August 24, 2006. Sold 249 at 81c on June 27, 2008. Loss: $349.82
Funtastic Ltd: Bought 316 at $1.78 on April 10, 2006. Sold 316 at 50c on June 27, 2008. Loss: $444.97
Reverse Corp: Bought 105 at $4.91 on August 10, 2007. Sold 104 at $1.45 on June 27, 2008. Loss: $399.03
Living & Leasure Group: bought 660 at 76c on August 16, 2007. Sold 629 at 4c on June 27, 2008. Loss: $488.69
Credit Corp: 118 at $4.32 on January 16, 2008. Sold 117 at 65c on June 27, 2008. Loss: $470.05
Allco Hit Ltd: Bought 227 at $2.21 on September 18, 2007. Sold 227 at 10c on June 27, 2008. Loss: $508.31
ABC Learning: Bought 80 at $6.47 on October 17, 2005. Sold 79 at 66c on June 27, 2008. Loss: $498.62
Babcock & Brown Unsecured notes: Bought 6 at $97 on January 2, 2008. Sold 5 at $36 on June 16, 2008. Loss: $340.67
Arasor International: Bought 500 at $1.01 on February 13, 2008. Sold 500 at 23c on June 27, 2008. Loss: $429.90
Avastra Sleep Centre: Bought 1140 at 44c on January 9, 2008. Sold 1140 at 4c on June 27, 2008. Loss: $486.78
Axiom Properties: Bought 1450 at 36c on January 16, 2008. Sold 1450 at 10c on June 27, 2008. Loss: $409.64
Brierty Ltd: Bought 295 at $1.70 on December 17, 2007. Sold 295 at 35c on June 27, 2008. Loss: $438.15
Clive Peters Ltd: Bought 338 at $1.48 on December 19, 2007. Sold 338 at 49c on June 27, 2008. Loss: $374.52
CEC Group Ltd: Bought 220 at $2.30 on Janurary 14, 2008. Sold 220 at 25c on June 27, 2008. Loss: $489.80
Style Ltd: Bought 760 at 69c on January 11, 2008. Sold 760 at 15c on June 27, 2007. Loss: $450.30
Recent bottom-fishing purchases since last update
June 25, 2008
Bank of Queensland: bought 6 at $94
Ord River Resources: bought 3847 at 13c
June 24, 2008
Advanced Share Registry: bought 1316 at 38c
June 23, 2008
Integrated Research Limited: bought 1613 at 31c
Ironbark Capital: bought 1030 at 49c
Paperlinx: bought 8 at $66
Maxitrans Industries: bought 863 at 58c
That's all for now.
Do ya best, Stephen Mayne
* The Mayne Report is a multi-media governance website published by Stephen Mayne with occasional email editions. To unsubscribe from the emails click here.
the market has fallen more than 1% again to hit a three month low as 2007-08 looks like being a shocker for investors that finishes badly.
The gloom is everywhere and I'll go he if Macquarie can get away its optimistic $1.2 billion BrisConnection float. Check out the propsectus and the press release that went out yesterday.
This one looks like the UEComm float of 2000, the last over-hyped dotcom offering that cost investors, including me, more than $500 million.
The biggest asset Macquarie has is its reputation for out-negotiating every government in the land on its Australian tollroad deals. They avoided all the disasters such as Rivercity, the Lane Cove Tunnel and the Cross City Tunnel and have now come back to the market saying "trust us".
One major infrastructure investor expressed surprise to me the other day that The AFR is yet to produce a critical article about the BrisConnections float and given Macquarie's record, they still might get it away and pocket $100 million-plus in fees, but given the recent performance of ConnectEast, Transurban and MIG, it is very hard to see it debuting at a premium.
Interestingly, the daughter of Macquarie's new tollroad king Michael Carapiet, Lisa Carapiet, is a junior reporter on The AFR but she doesn't cover the bank and we're not suggesting her presence is colouring the paper's coverage.
Supping at the T3 gravy train
The press will have a field day on the auditor general's report into the $200 million-plus T3 advisory gravy train. The SMH has a strong report already and Telstra's top brass will get blasted for seemingly threatening not to go on the roadshow unless they stayed in the most expensive hotels.
Not surprisingly, Telstra's head-kicking nowwearetalking.com.au website is silent on the story so far, but there will also be implications for some of the advisers involved.
Gavin Anderson, a PR firm headed up by and old flat mate of mine and Natasha Stott de Spoja's husband Ian Smith, won the spinning contract with a tender of $2.95 million which was more than double the next bidder.
Given that Smith is now reportedly looking at setting up a boutique Adelaide advisory firm with Alexander Downer, a factional Adelaide mate of then Finance Minister Nick Minchin, who ran the Telstra process, it isn't a good look.
Les Wozniczka: the new most sackable CEO in the country.
Futuris has announced a shock profit downgrade and its shares have plunged 28% to a 15 year low of 97c.
CEO Les Wozniczka is said to be one of the hardest men to deal with in corporate Australia. Rather than sacking those independent directors of Australian Agriculture Company, maybe its time the Futuris board or shareholders gave cranky Les the bullet.
Then again, with ABC Learning shares still wallowing at 73.5c, the $2 billion-plus lost by its investors leave Eddy Groves hard to knock off for sackability.
Dick Pratt vs Graeme Samuel
There has been plenty of media interest for comment on this amazing story about ACCC chairman Graeme Samuel trying to lock up cardboard price-fixer Dick Pratt for lying about his dirty deeds. I've been going harder than anyone, with the possible exception of this comment by Fairfax's Ian Verrender, as follows:
24 June 2008 - 774 ABC Melbourne with Lindy Burns
21 June 2008 - Sky Business View
20 June 2008 - 2UE Sydney with Jon Stanley
June 20 2008 - Crikey story
Is Everest Babcock & Brown telling it straight?
We've edited up the audio from the recent Everest Babcock & Brown hedge fund AGM, where the comment about only having two Babcock associated investments appears to contradict with what CEO Jeremy Reid told Michael Pascoe in The Eureka Report two weeks ago. Check out this package as you can also hear my commiserations for Reid on being the youngest person ever to fall off the BRW Rich List, and listen to a very interesting debate about Babcock's pass the parcel on long term bonds associated with the new Victorian Royal Children's Hospital PPP, which have lost their credit insurance wrap on close to $1 billion in bonds.
And speaking of The Rich List, our version has now had more than 15,000 page views and is easily the most popular feature on the site.
Listen to the humiliating Tabcorp pay backdown
We've been having some success dealing with companies to get records from past AGMs, so check out this Tabcorp package when they suffered a humiliating defeat at the hands of both proxy advisory outfits at the 2006 AGM, withdrawing two resolutions, including a big options package for now departed CEO Matthew Slatter. The proxy advisory firms will be amazed to hear the spin from former chairman Michael Robinson.
Setting the scene for Owen Hegarty payout showdown
Owen Hegarty's $10.7 million payout will be front and centre when OZ Minerals shareholders gather to approve it on July 18, so to set the scene have a listen to this audio file of the debate at the 2006 AGM when the remuneration report copped a 46% protest over because it moved the goal posts on some of Hegarty's options.
Remarkably, chairman Barry Cusack tried to claim such a protest was normal, which was complete rubbish. Check out this Oxiana package as we shape up for what should be a fascinating showdown.
Babcock implosion - all our coverage
Babcock & Brown shares have plunged and the financial engineers are now at the mercy of their bankers. Here is an up-to-date multi-media package containing all our interactions and commentary about the teetering specialist fund manager in Crikey, on ABC Radio and on Sky's Business View program last Saturday..
In terms of trading today, Babcock & Brown shares have recovered 7.7% to $6.25, whilst B&B Infrastructure dived 6% to a record low of 70c and B& Power slipped 0.5c to a new record low of 64.
The Wesfarmers warning about losing $20 million a month from the WA gas crisis is just the latest disaster for BBP which is responsible for allocating the limited energy supplies.
ASIC's latest insider trading prosecution
Everyone seems to agree that ASIC has been way to slack on insider trading over the years, so it is good to see they've charged a senior energy executive Mark Chatfield today, as Sean Parnell revealed in The Australian this morning.
Background Briefing special on shareholder activism this Sunday
Radio National's Background Briefing program will be airing a 40 minute program on shareholder activism in Australia this Sunday at 8am, so tune in because reporter Erica Vowles has hopefully put together the most serious media examination of the issue that we've ever seen after talking to most of the key players.
Hopping into the tax loss selling
The financial year is coming to a close and given our strategy of not cystallising losses, but always selling down if a $500 investment rises to more than $600, I was looking at capital gains of more than $16,000 for the year. For that reason, we've gone on a dog selling binge as follows, coinciding with some opportunistic buying which is revealed at the bottom:
Australian Education Unit: Bought 295 at $1.71 on August 10, 2007. Sold 294 at 59c on June 27, 2008. Loss: $369.11
Air New Zealand: Bought 210 at $2.40 on June 27, 2007. Sold 210 at 88c on June 27, 2008. Loss: $376.86
API: Bought 250 at $2.06 on August 24, 2006. Sold 249 at 81c on June 27, 2008. Loss: $349.82
Funtastic Ltd: Bought 316 at $1.78 on April 10, 2006. Sold 316 at 50c on June 27, 2008. Loss: $444.97
Reverse Corp: Bought 105 at $4.91 on August 10, 2007. Sold 104 at $1.45 on June 27, 2008. Loss: $399.03
Living & Leasure Group: bought 660 at 76c on August 16, 2007. Sold 629 at 4c on June 27, 2008. Loss: $488.69
Credit Corp: 118 at $4.32 on January 16, 2008. Sold 117 at 65c on June 27, 2008. Loss: $470.05
Allco Hit Ltd: Bought 227 at $2.21 on September 18, 2007. Sold 227 at 10c on June 27, 2008. Loss: $508.31
ABC Learning: Bought 80 at $6.47 on October 17, 2005. Sold 79 at 66c on June 27, 2008. Loss: $498.62
Babcock & Brown Unsecured notes: Bought 6 at $97 on January 2, 2008. Sold 5 at $36 on June 16, 2008. Loss: $340.67
Arasor International: Bought 500 at $1.01 on February 13, 2008. Sold 500 at 23c on June 27, 2008. Loss: $429.90
Avastra Sleep Centre: Bought 1140 at 44c on January 9, 2008. Sold 1140 at 4c on June 27, 2008. Loss: $486.78
Axiom Properties: Bought 1450 at 36c on January 16, 2008. Sold 1450 at 10c on June 27, 2008. Loss: $409.64
Brierty Ltd: Bought 295 at $1.70 on December 17, 2007. Sold 295 at 35c on June 27, 2008. Loss: $438.15
Clive Peters Ltd: Bought 338 at $1.48 on December 19, 2007. Sold 338 at 49c on June 27, 2008. Loss: $374.52
CEC Group Ltd: Bought 220 at $2.30 on Janurary 14, 2008. Sold 220 at 25c on June 27, 2008. Loss: $489.80
Style Ltd: Bought 760 at 69c on January 11, 2008. Sold 760 at 15c on June 27, 2007. Loss: $450.30
Recent bottom-fishing purchases since last update
June 25, 2008
Bank of Queensland: bought 6 at $94
Ord River Resources: bought 3847 at 13c
June 24, 2008
Advanced Share Registry: bought 1316 at 38c
June 23, 2008
Integrated Research Limited: bought 1613 at 31c
Ironbark Capital: bought 1030 at 49c
Paperlinx: bought 8 at $66
Maxitrans Industries: bought 863 at 58c
That's all for now.
Do ya best, Stephen Mayne
* The Mayne Report is a multi-media governance website published by Stephen Mayne with occasional email editions. To unsubscribe from the emails click here.