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| Share Name | Share Symbol | Market | Stock Type |
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| Woolworths | WLW | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
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| 0.00 | 0.00% | 1.22 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 1.22 | 1.22 |
| Top Posts |
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Posted at 11/8/2009 13:10 by onlybuyrubbish I had not known this site was available until I asked ADVFN why they had discontinued it a few weeks ago.Is Davy 99 still around, I miss your knowledge and comments, even if you were criticised by some who had a foul mouth, which was not necessary. What are the views of the state of play, I know they are worthless in theory, but can anybody comment on the following points : They still hold about 600 stores that have not been passed on. I know they are empty stores but, one day, they should be worth a fair bit. When do the administrators report the final situation ? Is there any hope the shareholders might get anything one day even though Deloittes say there will not be any money left. What did the Iranian investor do in the end, just write off his stake ? Any comments would be appreciated, I have(had !) a fair amount tied up in Woolies. Cheers, Tony. |
Posted at 06/5/2009 20:07 by fazersix Vikingwarrier - 6 May'09 - 19:29 - 5983 of 5983The bottom line woolies credit insurance was pulled causing the collapse then government fail to guarantee it for them leaving tax payers with a massive dole queues etc etc, the rest is history fraud or not investors total loss so far. Bad news init for all involved good job its not life or death situation ! Good luck f6 |
Posted at 26/4/2009 12:44 by fazersix SL33PY - 26 Apr'09 - 12:11 - 5966 of 5966Yep agree - did wtite to them about the same but received a silly answer we cant help one without the other! We have to remember at the end of the day the MP's get their wages and Fringe benefits regardless, do they care about woolies 30,000 staff investors and creditors no ? Think this will come back and bite them imho. Good luck with your wlw finished my stock trading been burnt too many times by incompitence by others. |
Posted at 20/4/2009 23:38 by sl33py The fall of Woolies is a slightly different story, but still one of ego. Woolies went bust last week because it had become a truly abysmal business. Its collapse had nothing to do with the recession and everything to do with appalling management. The shops are tacky and feel sticky, most of the staff are bored witless and often appear witless, while the product range was as muddled as its own pick 'n' mix. Such mismanagement comes down from the boss; it's chief executives who set the tone and they have been derelict in their duties. Investors in Woolies are now wiped out and thou- sands of staff face losing their jobs. Frankly, if I were a shareholder, I would consider taking legal action. The chairman, Richard North, had the chance to sell the business as a going concern a couple of times but, for whatever reasons, he refused to take up the offer. Even Archie Norman, the respected former Asda boss, tried to suggest bringing in Lazard to rescue the group but was rebuffed. But the real travesty was that the board had no vision of what Woolies could be, despite being one of the best brand names in the world. The administrators should find a proper retailer to buy the good shops and keep them going and a woman to run them. AN OLD PIECE FROM THE INDEPENDENT |
Posted at 07/4/2009 14:54 by fazersix boldtrader - 7 Apr'09 - 09:41 - 5932 of 5932Hi think davy will say the same nothing remaining for investors, i had an email from deloittes saying that, good luck. Ex stockmarket investor f6 |
Posted at 26/3/2009 13:57 by andrewlewis Davy 99Kingfisher didn't look too bad. Jump to main content [accesskey = s] Jump to site navigation Jump to search Jump to site map [accesskey = 3] Jump to accessibility statement [accesskey = 0] About us Customers Investors Media Corporate Responsibility People Suppliers Group directory HomeHome / Investors / Press releases / Results / 2009 Preliminary Results Press releasesRegulatory newsEmail servicesResults & presentationsCompany reportsKingfisher profiledRetail statisticsCorporate governanceCompany reorganisationsShare 26 March 2009 Kingfisher plc Preliminary results for the year ended 31 January 2009 Kingfisher plc reports full year sales up 11%, adjusted pre-tax profits up 3% and announces details of a comprehensive turnaround action plan for China Group Financial Summary 2008/09 2007/08 % Total Change (Reported) % Total Change (Constant Currency) % Like- for-like (LFL) change Note: Retail profit is stated before central costs, exceptional items, amortisation of acquisition intangibles and the Group's share of interest and taxation of joint ventures and associates. Adjusted measures are before exceptional items, financing fair value remeasurements, amortisation of acquisition intangibles and tax on prior year items. A reconciliation to statutory amounts is set out in the Financial Review. Retail sales £10,026m £9,050m +10.8% +1.2% (4.1)% Retail profit £503m £469m +7.2% (4.6)% Adjusted pre-tax profit £368m £357m +3.1% Adjusted post-tax profit £258m £250m +3.2% Adjusted basic EPS 11.0p 10.6p +3.8% Interim dividend 1.92p 3.85p (50.0)% Final dividend 3.4p 3.4p Flat Full year dividend 5.32p 7.25p (26.6%) Net debt £1,004m £1,559m (35.6%) (40.5)% Highlights in constant currencies Sales in France up 3% to £3.9 billion, retail profit of £283 million Sales in the UK down 2.6% to £4.3 billion, retail profit of £129 million benefited from early and firm margin and cost action Sales in other international markets up 7% to £1.8 billion, retail profit of £91 million Poland sales grew 19% to £1 billion, retail profit up 15% to £124 million B&Q China sales declined 24% to £431 million, retail loss of £52 million Comprehensive China repositioning underway. Store portfolio to be rationalised from 63 to 41 and all remaining stores revamped. Product and service offer to be refreshed. An exceptional accounting charge of £107 million has been booked for the cost of the plan. The net cash cost of the plan will be around £30 million Non-cash exceptional impairment charge of £160 million £124 million intangible goodwill write-off of B&Q China, £40 million of which arose due to the adverse impact of exchange rate movements £36 million impairment of Hornbach carrying value Castorama Italy sale completed for 615 million cash, generating an exceptional profit of £204 million (£178 million after tax) Reported net debt down 36% to £1.0 billion reflecting vigorous action on costs, cash and working capital as well as the sale of Castorama Italy Property portfolio independently valued at £3.2 billion (2007/08: reported £3.6 billion) Statutory reporting 2008/09 2007/08 Reported Change Statutory reporting is after net exceptional charges of £88m (2007/08: gain of £6m). £231m of the total exceptional charge relating to the accounting write down of intangible and tangible assets in China is largely offset by the £178m exceptional gain on the disposal of Castorama Italy, which is shown as a discontinued operation. Profit before tax continuing operations £90m £366m (75.4)% Profit after tax total operations £206m £272m (24.3)% Basic EPS continuing operations 0.2p 10.9p (98.2)% Basic EPS total operations 8.9p 11.7p (23.9)% Ian Cheshire, Group Chief Executive, said: "I am pleased with our solid performance in what has been a particularly challenging retail environment. We have grown share in all of our major markets, delivered our profits through strong margin and cost control and significantly reduced our net debt. "During the course of the year, we have strengthened our management team, made real progress with our seven-step 'Delivering Value' programme and completed the sale of our lower returning business in Italy at an excellent price for our shareholders. The performance in a very difficult Chinese housing market has been worse than anticipated at the start of the year, but we still believe that there is long-term potential in China and have initiated a clear and thorough set of actions to return this business to profitability. "Looking ahead, although we anticipate the next year to continue to be very challenging, we will remain focused on providing the best choice and value for our customers whilst managing our margins, costs and working capital tightly. We have a clear set of milestones for the coming year to ensure we continue to progress with our 'Delivering Value' programme. "I am confident that our robust balance sheet along with our international portfolio of market leading retail brands with strong value positions will help us to continue to demonstrate resilience and deliver shareholder value." Delivering Value - progress in 2008/09 At the beginning of this financial year Ian Cheshire was appointed as Group Chief Executive and set out his aim of delivering a step-change in shareholder value by focusing on three key priorities Management, Capital and Returns. Good progress was made in 2008/09 with this programme, known as 'Delivering Value' and clear milestones established for 2009/10. MANAGEMENT "a new senior team, working with a new collective responsibility for overall Group delivery of results as well as key existing cross-Group activities" 2008/09 progress Previous decentralised management structure replaced by a new Retail Board with collective responsibility for overall Group success in addition to their personal accountabilities. This board comprises the Group CEO, CFO, the three geographic retail divisional heads and other key cross-Group divisional heads Appointed new heads of the three newly created geographic retail divisions (France - Philippe Tible, UK - Euan Sutherland and Other International - Peter Hogsted) Appointed new Group CFO, Kevin O'Byrne Share incentives in place to grant to 700 store managers across the UK and France 2009/10 milestones Share incentives extended to store managers outside the UK and France CAPITAL "investment will be prioritised, targeting higher hurdle rates and faster payback periods. A key target is to stabilise debt at current levels, prior to reducing it in due course" 2008/09 progress Gross capital expenditure reduced year on year by 31% on a constant currency basis to £390 million New spending limits and a more rigorous approval process introduced Sold the lower returning, capital intensive Castorama Italy business for 615 million, generating a post tax profit on disposal of £178 million The loss making UK trial format, Trade Depot, was closed in order to focus capital resources on the coordinated development of B&Q and Screwfix Group working capital reduced by £180 million Over delivered against the flat net debt target excluding the benefit of the sale proceeds of Castorama Italy and the adverse impact of exchange rate movements. Including these items, reported net debt fell 36% (41% in constant currencies) to £1.0 billion (2007/08: £1.6 billion) 2009/10 milestones Gross capital investment to be further reduced to around £300 million Targeting a further reduction in net debt (in constant currencies) RETURNS "greater focus will be placed on generating higher cash returns from the retail businesses. The new leadership team has identified seven major steps to achieve this" 1. Driving up B&Q UK's profit 2008/09 progress 16 large store revamps completed in the year, 3 new stores, 16 medium store revamps New lower cost revamp model developed (under £1 million per store compared with the previous £2.5 million) More stringent store operating standards introduced, 91% stores now compliant Over 4,500 staff received training in basic home improvement projects such as laying wooden floors, gardening, wall papering and painting Overall costs reduced 1% in the year despite underlying cost inflation of 3% and 1% new space 2009/10 milestones 14 lower cost large store revamps, 7 medium store revamps National roll out of self-service checkout National roll out of 'Reserve and Collect' on diy.com Add 12,000 products for next day home delivery on diy.com utilising the Screwfix existing home fulfilment network Reduce overall costs by 1% year on year 2. Exploiting our UK Trade opportunity 2008/09 progress Loss making UK trial format, Trade Depot, closed. Closure programme of the 9 outlets now largely complete B&Q launched a Trade Discount Card for the professional tradesman. 177,000 cardholders are now signed up for quarterly retrospective volume based rebates Opened 45 more Screwfix outlets Launched "Plumbfix", a new specialist mail order catalogue operated by Screwfix exclusively for qualified plumbers 2009/10 milestones Launch "Electricfix", a new specialist mail order catalogue operated by Screwfix exclusively for qualified electricians 8 new Screwfix outlets Relaunch B&Q in-store trade offer maximising synergies with Screwfix 3. Expanding our total French business 2008/09 progress Opened 10 net new stores and revamped 8 stores Developed coordinated 3 year store opening plan Buying optimisation now in place covering 1.1 billion of product common to Castorama and Brico Dépôt Brico Dépôt stock shrinkage rates significantly improved - 9 million benefit 2009/10 milestones Open 5 net new stores, revamp 4 Castorama stores Deliver benefits of buying optimisation activity Extend buying optimisation activities to goods not for resale 4. Rolling out in Eastern Europe 2008/09 progress Opened 17 new stores, 9 in Poland, 6 in Turkey and 2 in Russia Total sales grew 26% (including 100% Turkey JV) to £1.4 billion* 2009/10 milestones Open 14 new stores, 6 in Poland, 5 in Turkey and 3 in Russia Total sales (including 100% Turkey JV) to reach £1.7 billion* * In constant currencies 5. Turning around B&Q China The Chinese market remains fundamentally attractive over the medium and longer term and is a potentially significant cash generative growth opportunity for Kingfisher. Our early expansion in this market has built a strong brand with a leading position, but the dramatic housing market slowdown has impacted performance and exposed internal operational issues that have exacerbated the impact of the market slowdown on reported losses. The key priority in 2008/09 was to strengthen the local team with experienced operators from across the Group, understand fully the operational issues that needed addressing and start a comprehensive plan of action to return the business to profitability as soon as possible. The review concluded that B&Q's ambitious expansion in recent years had been too fast, resulting in a rump of loss making and oversized stores. The business had become too reliant on a booming apartment design and installations market and was not developing other new services or product ranges. Furthermore, over reliance on local suppliers' support for store staffing (in store supplier representatives), store merchandising and ranging decisions led to stock proliferation and a weaker customer experience. A comprehensive turnaround plan is underway in China with most of the activity planned for 2009 and the first half of 2010. The plan encompasses rationalising the store portfolio from 63 to 41 and revamping the remaining stores, 17 of which will also be downsized. Supplier numbers, product ranges and stock levels will also be rationalised and new services and pick-up lines introduced in-store to drive sales and margin. The number of in-store supplier representatives will be significantly reduced in favour of trained B&Q staff. Own-brand product levels will increase and central support costs reduced. An accounting write off of £107 million has been booked in 2008/09 primarily reflecting the asset impairments for the rationalisations and revamps. The cash cost of the store rationalisation will be broadly offset by the sale of two freehold sites. The cash cost of the store revamping is expected to be around £30 million over the next two years. The vigorous Group support and oversight introduced in 2008 on the creation of the new Retail Board will continue to ensure the plan is well executed in the shortest possible time. 2008/09 progress Local management team strengthened An extensive and deep review of the operations completed 3 loss making stores were rationalised and 1 store downsized A new store format was developed and 1 store was revamped on a trial basis. The innovative new format officially opened on 20 March 2009 in the Putuo district of Shanghai and incorporates new ranges of softer "pick-up" lines merchandised using the '4 style houses' concept successfully adopted by Castorama France £33 million of excess stock cleared 2009/10 milestones Rationalise the remaining loss making stores Downsize and revamp a further 17 oversized stores Revamp around half the remaining stores into the new model Expand the new "pick-up" ranges of soft furnishings, household goods and accessories Roll out new single room make-over and single product installation services Replace supplier reps with B&Q trained staff in most product areas As a result of the turnaround activity, and subject to our expectations of a stabilisation of the market, Kingfisher is now targeting a return to a profitable business model during the second half of 2010 and for the business as a whole to return to profitability in 2011. 6. Growing Group sourcing 2008/09 progress Group direct sourcing now 10% of product cost of sales Number of product lines increased from 17,000 to 18,000 Appointment of Véronique Deroubaix as Group Commercial Director, formerly the Commercial Director for Castorama France, where own-brand sales penetration has almost doubled in the past five years 2009/10 milestones Group direct sourcing target of 12% of product cost of sales 7. Reducing working capital 2008/09 progress Surpassed target to reduce working capital by £100 million, delivered £180 million reduction B&Q UK stock reduced by £115 million, particularly on seasonal product through more rigorous clearance routines Payment terms on direct sourced product extended by 16 days 2009/10 milestones Reduce working capital by a further £50 million (at constant currencies), despite expected effects from legislative changes shortening French payment terms Download Preliminary Results announcement in PDF format (230Kb) Enquiries: Ian Harding, Group Communications Director 020 7644 1029 Nigel Cope, Head of Communications 020 7644 1030 Sarah Gerrand, Head of Investor Relations 020 7644 1032 Further copies of this announcement are available at www.kingfisher.com, or from: The Company Secretary, Kingfisher plc, 3 Sheldon Square, London, W2 6PX. Company Profile Kingfisher plc is Europe's leading home improvement retail group and the third largest in the world, with over 820 stores in eight countries in Europe and Asia. Its main retail brands are B&Q, Castorama, Brico Dépôt and Screwfix. Kingfisher also has a 21% interest in, and strategic alliance with Hornbach, Germany's leading large format DIY retailer, with over 120 stores in nine European countries. back to top Information correct as at 26 March 2009 © Kingfisher plc 2009 Disclaimer Site map Help Accessibility Mobile Search this site |
Posted at 06/1/2009 00:24 by d1gg3r A winter chill for 2009.Corporate Britain faces £110bn debt time bomb As the horror of recession descends this year, finance directors and the companies they shepherd face a terrifying race to defuse Britain's debt time bomb. By Helia Ebrahimi and Jonathan Sibun Telegraph.co.uk Last Updated: 7:34AM GMT 05 Jan 2009 The debt bomb was primed by the companies themselves. For many companies which have survived the credit crisis the greater challenge lies ahead - the task of navigating through a record £ 110bn of debt that will have to be repaid in 2009. But the bomb was primed by the companies themselves as they drew down hundreds of billions of pounds of cheap debt over the last decade to help fuel growth. Now that world has come crashing down and the money drawn has become a ticking time-bomb with companies waking up to the stark reality that lenders are demanding their cash back. According to data compiled for The Sunday Telegraph by Dealogic, British businesses have £25bn of debt maturing in the form of corporate bonds this year as well as a staggering £85bn of loans. The lack of funding available to companies was behind the Government's unprecedented £500bn bail-out of the British banking sector last October but the credit markets remain stubbornly frozen, raising fears that companies face annihilation if they are unable to refinance their debt. Boardrooms at even the bluest-of-blue-chip giants will be forced to focus their attention on refinancing the biggest ever annual maturity of debt owed to banks, bondholders and other lenders. Sam Dean, global co-head of equity capital markets at Deutsche Bank, says a lot of companies will need to make tough strategic decisions about how to cope with overburdened balance sheets. For some that will mean the difference between survival and extinction. There are very few sectors that won't face refinancing issues this year, says Mr Dean. "And, in this environment, as each company finds its own solution, the difference in outcomes will be extreme, with losers facing real difficulties - and some won't survive.'' Public companies in the UK have seen £645bn wiped off their stock market value in 2008 while their private equity backed rivals, under the burden of higher levels of leverage, face even greater challenges. John Cridland, deputy director general of the CBI, is under no illusions about the scale of the problem which he says could drive many companies to the wall. "When it comes to issues facing businesses, credit is top of the list,'' he says. "There is a significant amount of debt coming up for renewal in 2009. If banks are looking for a significant reduction in the amount of credit they make available or for sharply higher rates, companies are going to find it very tough.'' The threat to companies is the double whammy of recession biting into their profitability at the same time as their cost of funding - if they can get it at all - rising sharply. The Bank of England's latest Quarterly Bulletin echoed the CBI's warning. The Bank said that though the availability of trade finance had fallen over recent months, demand had risen, further straining corporate cash flows just as large volumes of debt have to be repaid. Companies across all sectors are frantically trying to devise strategies to present to the debt market this year, but few are palatable. Deutsche Bank's Dean says: "A lot of firms will have to hammer out solutions quickly, whether by refinancing through debt markets, which is not as easy as it was, raising new capital through equity via rights issues or placings, or even raising cash through strategic sales.'' Simon Collins, who heads accountant KPMG's special situations division, says he has never seen conditions so difficult. His department was created last year to advise companies - even those with ostensibly healthy balance sheets - on renegotiating debt in a market which has almost entirely closed to new lending. "Redemptions and refinancing will be a fundamental issue for everyone,'' says Mr Collins. "Even for the very best companies it is difficult to refinance now. There is hope that some limited liquidity might return, but unfortunately the underlying difficulty has not gone away. All companies will be refinancing with penal rates.'' Among companies trying to renegotiate debt are retirement housing specialist McCarthy & Stone and motor dealer Pendragon, which last month secured a covenants waiver to give it breathing space to continue negotiations. KPMG also recently helped bookmaker William Hill arrange an innovative refinancing deal designed to lock existing lenders in place right until the end of the term of debt, when a pre-agreed refinancing will kick in. But Mr Collins says the demand for refinancing will come not only because facilities have naturally come to an end, but also thanks to the raft of covenant breaches that will create a second trigger for refinancing. All firms are susceptible to this risk, but it most acutely faces private equity businesses which are highly leveraged and have historically been more aggressive in raising debt levels In 2009 a large part of the debt maturing is in the form of corporate bonds. The feverish growth of the bond market in recent years helped fuel takeover activity and now, according to Dealogic, corporate bond redemptions are approaching historical highs. Among those companies with bonds due are government-backed Network Rail with $11.2bn (£7.8bn) of securities, while mobile giant Vodafone has $5.2bn, oil group BP $3.1bn, satellite broadcaster BSkyB $2bn and tobacco company BAT $1.9bn. And while some companies may be in a position to repay, for many the maturity deadline is looming all too fast. According to Mr Collins, current negotiations are for bonds maturing after September this year, pay dates before then have already been attempted or refinanced - and if alternatives have not been found, it is almost certainly too late. Transport group Stagecoach, bookmaker Ladbrokes, broadcaster ITV and pubs chain JD Wetherspoon all have debt maturing and are under trading pressure. Paying off old borrowings with corporate bonds has drawbacks. To issue them at all, investors are demanding a track record and investment grade credit ratings and even then companies will be forced to pay higher interest rates. Corporates also face stiff competition from governments, who are issuing billions of pounds of bonds themselves to raise emergency funds. However, with investors having lost faith in stock markets there are some reassuring signs of life in the bond market. "The level of interest from retail investors in the bond markets is similar to that in the early 1990s,'' says Barry Donlon, a bond syndicate banker at UBS. "People are furious with the performance of the equities market and asking why they shouldn't buy BSkyB bonds paying 10pc interest instead.'' Retail investors are taking up some of the slack left by the collapse of large parts of the hedge fund industry but their buying power pales beside that formerly held by the financial whizz-kids. That, says Donlon, means buyers are calling the shots. "We are rebuilding the investor base but it is only to the extent that blue chip companies can access the debt markets, albeit at a far higher cost,'' he says. "For the weaker companies or those that are new to bond investors, the markets remain largely shut.'' The Bank of England's decision to cut interest rates to 2pc - from 5.5pc a year ago - has offered companies some respite, dramatically bringing down the base cost of borrowing, but banks remain reluctant to pass on the cuts and investors are demanding more generous terms. Blue chip names from BMW to BSkyB are among companies that have been forced to cough up. The UK pay-TV provider sold $600m of bonds in November on which it was forced to offer interest of 9.5pc. The last time the company sold dollar denominated debt, in February 2008, it paid a coupon of 6.1pc. "There are sectors where refinancing fears have been overplayed,'' claims Donlon. "BMW and Daimler came in and got deals done, albeit they had to pay up.'' For those companies which find themselves unable to find new borrowings and for whom the corporate bond market is closed there is the option of pushing out their own equity in return for cash. Department store group Debenhams is reportedly considering raising new cash in this way to tackle its debt. However, the risks remain potent in a highly volatile stock market - which necessitate deeply discounted rights issues or equity placings. Deutsche's Dean, who spent last year raising billions of pounds of capital for the banking sector, maintains that shareholders have both the will and the money to put their cash to work. "In 2009, institutional investors really want to have the option to be the first to put money behind the companies they own,'' he says. Firms that want the support of major shareholders will need to ensure they keep a close dialogue with them, says Dean, who believes some companies overlook involving investors in the right way. "In many cases the market perception of particular companies is worse than reality and these companies would do well to spend more time meeting investors face-to-face. More than ever, investors want to have the chance to really understand management plans, to see the whites of their eyes, and particularly to be consulted in an appropriate way about strategic options.'' Last year, financial companies who tapped up investors for cash early enjoyed far more attractive terms than banks that arrived later to market, and Dean says the trend will repeat itself as industry turns to capital raising for funding. However, though liquidity is there, investors will be picky about which firms they back. Because of this, companies should take the opportunity to fortify their balance sheets early to win the lion's share of the finite cash available. Firms facing funding pressure could find the money has been mopped up by their rivals - who now sit on predatory war chests - even before they get out their begging bowls. Another option would be debt for equity swaps with lenders, but again existing investors could be wiped out and frustrated. The prospective battle for indebted companies to raise new funds is therefore likely to lead to casualties. Debt defaults, or even the fear of money not being repaid, will provoke many banks to pull the plug and the retail sector's recent raft of administrations has already shown how nervous and trigger happy the banking sector has become. Even if banks take action early they face being forced to write off billions of pounds worth of debt, hammering their only recently rebuilt balance sheets and raising the terrifying spectre of a second banking crisis. Since pressure on banks will be brought to bear on companies, it is no surprise that those on the front line of the potential debt default battle are finding themselves under surveillance by still cash rich funds which smell a profit from the spoils of war. One debt banker said he had been inundated with calls from hedge funds looking for tips on those companies expected to face the greatest difficulties refinancing their loans or bonds. "The big trade for hedge funds is betting on who is going to be shut out of the debt markets in 2009,'' he says. "Debt fears have driven the stock markets in much of 2008 and will play an even greater role this year. Leisure, property, construction, retail - they're all areas to watch.'' That means finance directors will be fighting on two fronts. Battling in the debt market to win breathing space for new funds, but also fighting a rearguard action against hostile moves from predators. Having primed the debt bomb they now face the threat that it is about to explode in their faces. |
Posted at 19/10/2008 11:20 by d1gg3r Interestng that Bauger, a company that strip investors assets with break ups should themselves be in trouble. What do Iceland gov expect when foreign investors want to pick over the best assets, Bauger and other foreign investors been doing it for years in the UK which is probably why so many businesses are now foreign owned and maybe even why we pay so much gas to EU companies who use it to subsidise their own EU customers. |
Posted at 19/10/2008 04:22 by bartender18 On a slow Sunday, here's a nice read if you have the time, Warren Buffet over to you.Omaha THE financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary. So ... I've been buying American stocks. This is my personal account I'm talking about, in which I previously owned nothing but United States government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy.) If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities. Why? A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation's many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now. Let me be clear on one point: I can't predict the short-term movements of the stock market. I haven't the faintest idea as to whether stocks will be higher or lower a month - or a year - from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over. A little history here: During the Depression, the Dow hit its low, 41, on July 8, 1932. Economic conditions, though, kept deteriorating until Franklin D. Roosevelt took office in March 1933. By that time, the market had already advanced 30 percent. Or think back to the early days of World War II, when things were going badly for the United States in Europe and the Pacific. The market hit bottom in April 1942, well before Allied fortunes turned. Again, in the early 1980s, the time to buy stocks was when inflation raged and the economy was in the tank. In short, bad news is an investor's best friend. It lets you buy a slice of America's future at a marked-down price. Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497. You might think it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain. But some investors did. The hapless ones bought stocks only when they felt comfort in doing so and then proceeded to sell when the headlines made them queasy. Today people who hold cash equivalents feel comfortable. They shouldn't. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts. Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring Wayne Gretzky's advice: "I skate to where the puck is going to be, not to where it has been." I don't like to opine on the stock market, and again I emphasize that I have no idea what the market will do in the short term. Nevertheless, I'll follow the lead of a restaurant that opened in an empty bank building and then advertised: "Put your mouth where your money was." Today my money and my mouth both say equities. tongue.gif Warren E. Buffett is the chief executive of Berkshire Hathaway, a diversified holding company. The New York Times |
Posted at 12/10/2008 20:38 by davy99 Mail on SundaySir Alan Sugar trawls High St for value Financial Mail 12 October 2008 Cash is king and rich investors with a fistful of readies could be heading for massive profits in the next few years if their timing is right. After record falls in share prices in recent weeks there are signs wealthy investors are dipping a toe in the water in the hope of spectacular returns in the long term. Last week, Sir Alan Sugar, entrepreneur and star of TV's The Apprentice, spent £1.8m on a 3.9% stake in beleaguered retailer Woolworths. The outlay will hardly dent Sugar's estimated fortune of £830m, but it was brave given Woolworths' share price was trading at a record low of 2.63p last week, putting its stock market value at six times less than its debt mountain. Another investor gambling more of his fortune last week that a share price was near the bottom wasbnaire Joe Lewis, who paid £137m for a 25% stake in pubs group Mitchells & Butlers. Buying shares when everyone else is selling is known as contrarian investing, or more commonly 'bottom fishing' since it involves trawling among sunken share prices in search of a prize catch. Crashing markets can lead to huge losses for investors, but history shows that those who brave choppy waters and invest for the longer term can make spectacular returns. One of the most famous examples of this approach is when American value investor Warren Buffett bought $1bn worth of Coca-Cola shares a year after the 1987 stock market crash. Buffett, whose favourite drink is Cherry Coke, paid $5.46 a share for a seven% holding. Ten years later the shares were trading at $88. |
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