Forum Archive Index - September 2000

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

I don't have a quarrel with WNC employees or the businesses they are engaged in - a previous post I said the WNC businesses are "believable".

Insiders are generally understood to be directors & people acting in the function of a director, even if called otherwise.

The issues complained of  by me centre on whether the company deals fairly  with its shareholders as a whole & between shareholders individually. 

As I said before, I consider the shares speculative &  I do have a small holding (in my personal speculative portfolio) . The potential for profit in this type of portfolio comes more from market perceptions of & expectations for the businesses than fundamentals.I'm watching the Radio spectrum auctions on www.med.govt.nz with interest to see when Jump will "jump".

Therefor, we don't regret selling the [Family Trusts] 2.5% holding in WNC, where we were counting on fundamentals. We happily contributed $30,000 in the 1998 rights issue & bought shares onmarket  to get company off the ground - ( & encouraged many others to also contribute at the time) We were largely attracted by the Cobb & Co business ( which WNC is not doing nearly as much with as it could be) The corporate governance issues which became proven to us after the 1999 AGM made it an inappropriate vehicle for that size of investment for a Family Trust; & we sold down between October & May.