Forum Archive Index - November 2002

["The Flying Pig" <theflyingnzpig@hotmail.com>]

The Pig has noted today with some interest the resignation of the LPC CEO David Viles - effective immediately.

Perchance? the demise of Languishing Layton left David squirming in the mud without Board support? The inside Bacon is that David has been looking Offshore for work since the CCC sunk his sty mate - albeit perhaps successfully now.

I’m a positive Piglet at heart but the LPC Governance and Management has certainly been on my muddy trotter for a considerable period.

LPC is a "bacon slide" share – it will fry up and grease down on dividend streams geared by poor Capex management. There has been little comfort in the manner of strategic outlook or long term HR management. Brent and David figured as long as they gave the CCC a lot of money at the end of the financial, then they would bask on the sun collecting Royalties – but it’s not rocket science. Any fool with an abacus can run down the assets, exploit Monopolistic Mayfair Policies, dick the Unions, and disaffect the local community to the extent of inciting hate mail. HEY – but look at our financial - Bend it like Beckham darling! And you did.

I put it to you that the LPC is the Stalag 13 of New Zealand Ports. LPC Investors must note with caution that the share price is unlikely to ever rise above $1.95 given the current dividend regime. Perhaps it’s a good time to buy – but I’m waiting for a HUMAN to run the company before I shell out some cabbages on this stock and I can’t see Hogan anywhere. Problem is also - David has stacked his management with Daleks - so I suspect some more cleansing is necessary.

Where is Dr. Who when you need him – talking to Dr. cLayton(s) perhaps?

Compare the LPC to the other hub ports and you will see my meaning – it’s the skinny kid in the class getting a B at the end of the year by cheating. The kid never gets an A+ in life because they can’t understand the tangibles behind net asset growth.

So who’s to blame – well stick my hoof at the CCC – they should get out of Dodge and quit messing with rap singles like "It wasn’t me".

CCC have long condoned an environment that had little respect for local community values, the workers and the essential long-term needs of the Port and its customers. It’s all BS Politics governed by a bunch of seemingly dimwitted bureaucrats that couldn’t run a garage sale. Take recent Director appointments for example - Erin I love you as a Sportsperson baby – but for the life of me I can’t see how you would know one end of a ship from the other. Heck you didn’t even show for the AGM (but I bet you collect your Directors fees on time). J

Anyway enough of the rant - What this all reflects is a simple misjudgment of assets. Businesses are made of two items – people and things. Mismanage the people and the things are useless. You could take 200 new guys and stick them into that container terminal and within 6 months you would have exactly the same ingrained Unionists as you have now. And I don’t blame them.

This Pig isn’t a whining Socialist by any means – but I bet 5 bucks that the last time a member of the LPC management stood on the deck of a ship during cargo and 40-knot Southerlies would predate primeval sludge.

I also put it to you that margin between winning the P&O work with the 4100’s was the difference between an EBIT of $16 million and $15 million. So where is the logic…again short tem, shareholder driven.

And who’s the major shareholder – CCC.

Oh well…. at least they can afford to build that sewage outlet. What a bunch of dummies.

THE PIG

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