Forum Archive Index - July 2000

["Ian Andrews" <iandrews@ihug.co.nz>]

Kevin would echo my sentiments about Wilson Neill, which were well covered in the last year in the Sunday Star, ODT, NZ Herald NBR & Independent. I said Corporate governance standards of WNC were extremely poor. Nothing has changed. The company is indebted ( I believe heavily, in comparison with its tangible assets) to judge from the registered charges on its subsidiary companies Cobb & Co Ltd & WNC Hospitality Ltd & the WNC has refused to tell me how much the debts are.The Annual Report is due out in 2 weeks & this is doubtless fueling speculation.

 

This is just one example & there are other historic & current issues which will doubtless receive further public airing in due course.

 

With the company's share price escalating, I found it difficult to persuade fellow shareholders of the need to act. The New Zealand small shareholder is their own worst enemy because they refuse to hold directors accountable until it is too late - i.e. when bad management & coporate governance have become reflected in the share price.

 

Against this, in the valuation mix, one must regard the wireless internet venture in Radionet as a wildcard; & in my opinion Wilson Neill's 465 million shares at current prices could still be a speculative play ( but little more )