Sunday, June 25, 2017

SOME DOG

I well remember when National floated Mighty River Power (now Mercury) and Labour and the Greens engaged in a dirty piece of economic sabotage designed to drive down the issue price just so they could call it a failure.   

It was nothing of the sort and investors flocked to buy up a piece of the action notwithstanding the scare campaign campaign which included the threat of compulsory repurchase of shares by an incoming Labour/Green Government at the issue price.

Clayton Cosgrove, one of Labour's few MPs touted as being business savvy, went so far as to label the investment as 'a dog'.    Well, the good news is that at the close of trade yesterday my shares had increased in value by 74%.   Some dog.    Labour's understanding of the market is only equaled by their understanding of the immigration and electoral laws.   Sad.



6 comments:

Shelldrake said...

And paid about $1150 in dividends on the standard number of shares allocated at the time of the float

paul scott said...

Not sure, but I think one of our [ NZF] really bad policies is to [ virtually Nationalise ] the power industry with forced buy backs.

The Veteran said...

Paul ... expected nothing less from a Party led by a Muldoonist ... compulsory purchase is a socialist mantra.

Anonymous said...

Veteran..."Socialist Mantra" is fake news. The biggest nationalisations ever made were by non socialist governments. Cecil Rhodes British South African company and the East India Company were both compulsory purchased.

It is not as if nationalising a failing business is always a bad idea and rather it should be broken up by the market. In 1971 Rolls Royce went bankrupt largely due to the costs of the new range of commercial jet engines it was building. Rather than let it fail Heath’s Conservative government nationalised Rolls Royce which went on to become one of the most successful engine manufacturing companies in the world (being privitaised in 1987 by the Thatcher government).

Furthermore privatising companies has also not always been a stunning success. Rail privatisation has led to much higher fares in the UK and one of the lines, the East Coast Mainline, has twice failed in private ownership despite making a profit in public ownership.

The appetite for UK Rail and energy to be nationalised is growing as it has benefited the few and not the many and the Tory spin on private being more efficient was proved false by the failure of the British car industry. Today we have the tools that were sadly lacking in the 70's...computers.

Lord Egbut

gravedodger said...

Gee M'Lord outstanding presentation.

So a high tech company making seriously great jet engines is "saved" by socialist Heath and reprivatised by Baroness Thatcher is what, good.
A dying ninetenth century transport outfit is privatised while it has a residual market value gets even more inefficient and continues to head to inevitable pile of "the Steaming" is bad.

Why did I think that was economic case history with relevance.

Now can we discus the continuing Government involvement in Radio and TV, having waved goodbye to any realistic opportunity to sell them off before they descend into an abyss of negative value.

I purchased Mighty River, now Mercury, originally as a support move to what governments should do with all commercial ventures they 'own', Of course that is a stupid description of the truth they only hold such ventures in trust.
Then when the moronic Melons and the daft unionists plunged the issue price I upped my purchase and it hs been a great move.

Of course economic reality has the government earning more income from the Half they retained under the partial privatisation.

Anonymous said...

By the time I worked out the prose I had a choice.....the pub won.

Lord Egbut