Monday, May 28, 2012

No Wonder The Share Price Tanked

Despite its share price having dropped from $1.90 to just $0.63 over the past two years, the worthy board members of Fairfax Media last week declined to appoint the world's richest woman and arguably most successful businesswoman to its board. 

Oh yes, she happens to be the owner of more shares in the company than any other share holder.

Adolf looks forward to further developments.  Much popcorn required.

What brought all this on?

Oh, just some sloppy reporting by their NZ flagship the Dominion Post

According to the creatures at the DomPost, 500 NZ jobs are 'at risk' because an Australian company has entered into voluntary receivership.

 The company, Hasties Ltd, specialises in a number of fields, the biggest of which is industrial refrigeration and associated  servicing activities. Adolf has some news for the journos at the dieing DomPost.

The jobs will still be there if Hasties closes.  Most likely pretty much the same people will be doing those jobs.  The jobs don't disappear because the systems still need to be serviced.  Alternative companies will snap up the Hastie employees who know their customers and their systems backwards.

Pity that doesn't lend itself to a doom laden headline.

Here's a question.  How many jobs will be lost when Fairfax finally goes broke and throws in the towel?


Mort said...

so If ANZ and the other banks have 250M tied up in loans to Hasties, how much exposure to the underlying equity of the banks is at risk if the usual 10 fold fractional reserve is applied?
Could this Basel 3 boundaries be about to be breached?

Adolf Fiinkensein said...

Mort, I think you'll find it's the big four PLUS a number of international banks.

Even if it was just the big four, $2.5 billion is less than they'd spill before lunchtime.

Anonymous said...

How many staff will Rinehart sack to get Fairfax selling papers again? A lot of their journos and editors I suspect, as they write the stuff no one wants to pay money to read

Paulus said...

Sunday Star Times will fold before the Dominion, which is half decent paper.