Today's FT had a special corporate finance report with a view from Lord Clive Hollick a senior executive at Kohlberg Kravis Roberts one of the private equity firms under scrutiny at the moment. Not because they are doing anything illegal - but the secrecy with which they operate has led to unnecessary attention.
Reminds me of the days of devil worshipping in the pre-multi party era.
Since it seems to attract many top executives Lord Hollick has warning that it might not be a good career move:
"Those self-important chief executives who seek newspaper profiles, the adulation of the gabfest crowd and the unquestioning support of their colleagues, should stay put.
Executives should leave their ego at the door and prepare to answer tough questions from private equity executives often less than half their age but with formidable intellects."
Wednesday, March 28, 2007
Tuesday, March 27, 2007
Private Equity
Of late private investors have come under intense scrutiny - the worst is that it is all negative. Unions especially have been very vocal in their opposition to whatever deal
First these grouping is made up of monied individuals - mainly ex-investment bankers - having disposable funds they retire and use they wealth they have created to sniff out on any under performing businesses to be taken over.
In the process they have created a new meaning to 'Privatisation' - it used to mean state run businesses being taken public (IPOs..). Now it is the practice of buying public companies by a few individuals from the excessive public exposure that a publicly listed company is under into a private-equity firm.
Why are they so unpopular?
They buy companies on credit, making them leaner, and then selling them off at a profit. And of late they have been too ambitious - they don't go after small companies only - JS Sainsbury's and Boots are the latest addition. Since they will turn their acquisitions to be really Private! - they do not need to make the kind of disclosures associated with stock market listing. Unaccountable? In this day and age almost like I'm dreaming.
(Never apologise, Never explain)
First these grouping is made up of monied individuals - mainly ex-investment bankers - having disposable funds they retire and use they wealth they have created to sniff out on any under performing businesses to be taken over.
In the process they have created a new meaning to 'Privatisation' - it used to mean state run businesses being taken public (IPOs..). Now it is the practice of buying public companies by a few individuals from the excessive public exposure that a publicly listed company is under into a private-equity firm.
Why are they so unpopular?
They buy companies on credit, making them leaner, and then selling them off at a profit. And of late they have been too ambitious - they don't go after small companies only - JS Sainsbury's and Boots are the latest addition. Since they will turn their acquisitions to be really Private! - they do not need to make the kind of disclosures associated with stock market listing. Unaccountable? In this day and age almost like I'm dreaming.
(Never apologise, Never explain)
Monday, March 26, 2007
Monday Blues
I’m reading some of the criticisms being hurled at Gordon Brown, obviously it has to do with the fact that there is an election looming.
Listen to this:
He is intellectually arrogant, lacking in warmth and of course ruthless
He is even accused of reading too many books, not good at small talk, takes too long to make political decisions, lacks spontaneity, DOES not have many friends, acts Machiavellian – although of course everyone acknowledges he has probably been the most successful British exchequer in living memory.
Please give him a break he is apoltician who went to school don't you think we expect too much from him?
ALL politicians are expected to be conniving (Machiavellian), how else can they sleep?
Listen to this:
He is intellectually arrogant, lacking in warmth and of course ruthless
He is even accused of reading too many books, not good at small talk, takes too long to make political decisions, lacks spontaneity, DOES not have many friends, acts Machiavellian – although of course everyone acknowledges he has probably been the most successful British exchequer in living memory.
Please give him a break he is apoltician who went to school don't you think we expect too much from him?
ALL politicians are expected to be conniving (Machiavellian), how else can they sleep?
Sunday, March 25, 2007
.... Smooth transition....
I got the news of Martin Oduor-Otieno's appointment as the next CEO at KCB. Good news indeed in my opinion - smooth and indicates maybe KCB was grooming him for the position.
Whereas the position was advertised in the mass media and attracted interest from far and wide shows some element of professionalism in the board of KCB. This textbook - you do not have to be a genius you only need to have gone to school and had a couple of years of work experience to know that's all people are after. TRANSPARENCY.
And the 'politicians' are wondering why the appointment of CBK governor attracted so much controversy - sickening. I wonder what really happens when one becomes a government official - I mean as part of job description are they required to attract undue publicity (I should have used negative publicity instead). It is actually useless to go to school all these years and not be able to apply the basics in life. I'm not hating on the Government (though it is the easy way out) - it is the same everywhere - Look at GWB and the US congress. That's the only way one can defend the indefensible - someone remind me why I detest politics (or is it the politicians?). Enough, let take a walk.
The only reason I did not submit an application for the KCB CEO's position was because I was waiting for the CBK Governor's post. Now look at what's happened.
Congrats to the new guy at the helm of KCB - he's CV speaks for itself - so far we have not heard of any political maneuverings (which cannot be ruled out!). The 3 top banks with Kenyans at the helm - I wish the government would also be made up of Kenyans!
I guess I'm the only one who sees it like this - unless Robert Shaw has a different view.
Whereas the position was advertised in the mass media and attracted interest from far and wide shows some element of professionalism in the board of KCB. This textbook - you do not have to be a genius you only need to have gone to school and had a couple of years of work experience to know that's all people are after. TRANSPARENCY.
And the 'politicians' are wondering why the appointment of CBK governor attracted so much controversy - sickening. I wonder what really happens when one becomes a government official - I mean as part of job description are they required to attract undue publicity (I should have used negative publicity instead). It is actually useless to go to school all these years and not be able to apply the basics in life. I'm not hating on the Government (though it is the easy way out) - it is the same everywhere - Look at GWB and the US congress. That's the only way one can defend the indefensible - someone remind me why I detest politics (or is it the politicians?). Enough, let take a walk.
The only reason I did not submit an application for the KCB CEO's position was because I was waiting for the CBK Governor's post. Now look at what's happened.
Congrats to the new guy at the helm of KCB - he's CV speaks for itself - so far we have not heard of any political maneuverings (which cannot be ruled out!). The 3 top banks with Kenyans at the helm - I wish the government would also be made up of Kenyans!
I guess I'm the only one who sees it like this - unless Robert Shaw has a different view.
Thursday, March 22, 2007
Wednesday, March 21, 2007
Budget 2007
It's normal to want to finish on a high note, make the audience yearn for more.
Robbing Peter to pay Peter - that's how someone described the budget speech.
Chancellor Gordon Brown read out his budget proposals - just after the Tories were talking of tax-cuts he didn't just talk about he did it.
I'm so excited (I think I should rightly be)- with a 2p cut in basic income tax rate. From 22p in every pound to 20p with effect from April 2008. Wait a minute if you smoke and drink wine this might not work for you - rises of between 1p to 11p have been proposed for these luxuries.As if to prove he really wants people to quit smoking VAT on nicotine patches was cut to 5 per cent. Those who want to peg there family to government politics - it's time to get more babies! Lower income households with no children are losing - due to failure to utilise tax credits fully.
Corporate tax, after much campaign was also cut from 30p in the pound to 28p again from April 2008 - although capital allowances cuts seem to be the way to fund the CT reduction.
As expected the opposition have dismissed this as a 'con trick'.
Headline seeking budget? Again why not it's politics.
Elvis has left the building.
Sunday, March 18, 2007
... Airport, Immigration .... etc
I still have a few things I had scribbled in my note book which I keep saying should be here. Nowadays travelling can never be taken for granted.
It seems that I'm not the only one who is always apprehensive when coming in contact with immigration officials at the airports. Obviously it has something to do with the heightened security alerts since the issue of terrorism arose. I read somewhere that a poll taken from regular foreign traveller's 66 per cent were uneasy.
Nowadays I hear travelling to the US mainly can never be taken for granted from the stories I hear - I've never been there. It is understandable given it has 1.1m foreigners enter US everyday I'm informed. So the staff can be overly aggressive - probably it's just has to do with fatigue, be warned though they can make your journey a hellish experience. After checking in and queuing up to go through the security check one security guy picked me out in the the line (I had a rather large 'hand luggage' I guess). Anyway he took me back to the check-in line to confirm whatever and then to make matters worse I had to stay at the back of the queue again! Were it not for the heavy presence of security with weapons I think I should have picked a fight with the guy. I don't mind him doing his work but have the courtesy and restore me to my position - I'm running abit late here.
It is embarassing to appear like a suspect.
Amazing but I sat next to a lady making a connecting flight to Kenya from the US - she complained the customer service levels at the UK airport needs to be looked into. Well she got conflicting information as to her luggage allowance and was in the process forced to pay for the 'excess' luggage. Nobody would even listen to her story.
Maybe it's just me again.
It seems that I'm not the only one who is always apprehensive when coming in contact with immigration officials at the airports. Obviously it has something to do with the heightened security alerts since the issue of terrorism arose. I read somewhere that a poll taken from regular foreign traveller's 66 per cent were uneasy.
Nowadays I hear travelling to the US mainly can never be taken for granted from the stories I hear - I've never been there. It is understandable given it has 1.1m foreigners enter US everyday I'm informed. So the staff can be overly aggressive - probably it's just has to do with fatigue, be warned though they can make your journey a hellish experience. After checking in and queuing up to go through the security check one security guy picked me out in the the line (I had a rather large 'hand luggage' I guess). Anyway he took me back to the check-in line to confirm whatever and then to make matters worse I had to stay at the back of the queue again! Were it not for the heavy presence of security with weapons I think I should have picked a fight with the guy. I don't mind him doing his work but have the courtesy and restore me to my position - I'm running abit late here.
It is embarassing to appear like a suspect.
Amazing but I sat next to a lady making a connecting flight to Kenya from the US - she complained the customer service levels at the UK airport needs to be looked into. Well she got conflicting information as to her luggage allowance and was in the process forced to pay for the 'excess' luggage. Nobody would even listen to her story.
Maybe it's just me again.
..Tick ... Tock...
It seem like I'm too busy nowadays to create time to write anything here. I guess it is life - but we do make time for things we feel so passionately about (Don't we?)
Today I've been online for the whole afternoon (it's now 2000hrs!). I'm searching for a place - something I'd rather avoid. I gave my landlord a notice sometime ago that I (actually we) will be moving at the end of the month - up to now nothing - ZILCH!
It is complicated given my DEMANDS. Looking for a short term stint, own facilities sharing currently is not my thing (whether with friends or foes). Not that I'm still not considering properties with people I know but again I have BASIC demands! I'm looking for some privacy basically - yes friends but PRIVACY is critical.
Still the property owners have the upper hand. I'm afraid of settling for just anything. So my DEMANDS are secondary to the landlord's demands.
Given my DEMANDS might be overwhelming and making all offers I've received so far I might actually be homeless at the end of the month.
An advice for the week as I'm looking around came from the FT interview with a young business exec (Mohammed Iqbal):
Don't live a champagne lifestyle on beer money
Today I've been online for the whole afternoon (it's now 2000hrs!). I'm searching for a place - something I'd rather avoid. I gave my landlord a notice sometime ago that I (actually we) will be moving at the end of the month - up to now nothing - ZILCH!
It is complicated given my DEMANDS. Looking for a short term stint, own facilities sharing currently is not my thing (whether with friends or foes). Not that I'm still not considering properties with people I know but again I have BASIC demands! I'm looking for some privacy basically - yes friends but PRIVACY is critical.
Still the property owners have the upper hand. I'm afraid of settling for just anything. So my DEMANDS are secondary to the landlord's demands.
Given my DEMANDS might be overwhelming and making all offers I've received so far I might actually be homeless at the end of the month.
An advice for the week as I'm looking around came from the FT interview with a young business exec (Mohammed Iqbal):
Don't live a champagne lifestyle on beer money
Tuesday, March 13, 2007
The Bull
'Inductive' reasoning is not 100pc reliable...
Everyday a chicken is brought some feed by the farmer. On the basis of this repeated experience the chicken reasons it is a rule of life - a kind of natural law - that the farmer will bring her feed every day. Then one day, the farmer comes along and wrings her neck.
- Philosopher Bertrand Russell
I feel the stock investors in Kenya (not my expertise to study people) are like the chicken. You are bound to hear stories of someone who took out a loan bought shares and sold them after a few days paying off his debt within a week. Not to deny that can happen but imagine others taking such a plunge - just because it happened to someone else!
One day the stock market will or will try to wring our necks!
With no long term perspective currently the market is filled with speculators - which is OK to want to make a quick kill - but just imagine the consequences. The roller coaster associated with the pure equity investment is not for everyone. So everyone is excited about the NSE - it is almost as if it never existed before.
I would love to invest in stocks in the near future - for now it is a wait and see.
Everyday a chicken is brought some feed by the farmer. On the basis of this repeated experience the chicken reasons it is a rule of life - a kind of natural law - that the farmer will bring her feed every day. Then one day, the farmer comes along and wrings her neck.
- Philosopher Bertrand Russell
I feel the stock investors in Kenya (not my expertise to study people) are like the chicken. You are bound to hear stories of someone who took out a loan bought shares and sold them after a few days paying off his debt within a week. Not to deny that can happen but imagine others taking such a plunge - just because it happened to someone else!
One day the stock market will or will try to wring our necks!
With no long term perspective currently the market is filled with speculators - which is OK to want to make a quick kill - but just imagine the consequences. The roller coaster associated with the pure equity investment is not for everyone. So everyone is excited about the NSE - it is almost as if it never existed before.
I would love to invest in stocks in the near future - for now it is a wait and see.
Thursday, March 08, 2007
It still hurts....
This 'might' be the last time I'm repeating myself although I have this strange sensation that I can't stick to the promise. Life is not always about what I like.
Look at the key players in the Stock market - it's same ol' same ol'. I hate repeating myself.
I think the most disappointing part of my trip was the realisation that our leaders are still lacking in originality. Opportunities present themselves for them to prove how 'different' they are from the previous regime. Sad it's same ol' same ol'!
Imagine a magician standing in front of his audience and doing the obvious! Please pull a rabbit from the magic hat or something - dazzle me! Was it not Phillip Ochieng who accused those clamouring for multi-party to be jealous that they don't have a chance to rob the masses. I do not agree with most of his views but how true when I look back.
Aww was it not interesting to see the president praising his predecessor at a function? Underneath we are all the same - selfish. Okay you guessed it right I was in Nairobi networking - when I missed the chance of becoming the Governor of CBK I told myself let me go lick my wounds, wait for the 'next' opportunity.
Yes I wish someone would have been more original and done something that would even surprise me.
Dazzle me!
Look at the key players in the Stock market - it's same ol' same ol'. I hate repeating myself.
I think the most disappointing part of my trip was the realisation that our leaders are still lacking in originality. Opportunities present themselves for them to prove how 'different' they are from the previous regime. Sad it's same ol' same ol'!
Imagine a magician standing in front of his audience and doing the obvious! Please pull a rabbit from the magic hat or something - dazzle me! Was it not Phillip Ochieng who accused those clamouring for multi-party to be jealous that they don't have a chance to rob the masses. I do not agree with most of his views but how true when I look back.
Aww was it not interesting to see the president praising his predecessor at a function? Underneath we are all the same - selfish. Okay you guessed it right I was in Nairobi networking - when I missed the chance of becoming the Governor of CBK I told myself let me go lick my wounds, wait for the 'next' opportunity.
Yes I wish someone would have been more original and done something that would even surprise me.
Dazzle me!
Tuesday, March 06, 2007
Sorry NSE Just Not Yet!
"Independence is fundamental to the reliability of auditors' reports."
I know it has been ages since I wrote anything here.
Partly it has to do with the fact that my trip home was so good - eye opening. It feels good to be on the ground and see with your own eyes.
Stocks have always been best suited for anyone with a long term perspective - but there is alot of work to be done in Kenya.
How many weeks has it taken the capital markets authourity to declare what 'everyone' knew was happening at Francis Thuo. I think it is discouraging what is still an opportunity for Kenyans to invest and create wealth. They seemed all too shy to state the obvious - trading illegally in clients shares.
Don't get me wrong - Kenya is not a unique case, it is happening everywhere. But it does not have to be the end
So personally given the fact that I am far from Kenya, the time lag that exists when dealing with brokers - it is hardly a viable way of investment for me. (Who do I need to sleep with to get some service?) I actually met individuals who have made 'good' investments and are doing fine - but they always had someone they knew who handled their business.
You don't just walk into a stock brokerage firm and get service are you stupid?!
Conclusion:
In my opinion the problem at NSE/CMA is that (don't quote me here!) it has turned out to be an old boys club. Familiarity. The major players have been there for far too long to the extent that I think we need fresh blood generally that can push for reforms and be stringent on monitoring the stock brokers. (The whole country needs an overhaul - sorry no politics here!)
I know I might be alone in this but I believe same an auditor should not only state his independence - he should actually be seen to be independent. Which I honestly has aroused my suspicion.
I know it has been ages since I wrote anything here.
Partly it has to do with the fact that my trip home was so good - eye opening. It feels good to be on the ground and see with your own eyes.
Stocks have always been best suited for anyone with a long term perspective - but there is alot of work to be done in Kenya.
How many weeks has it taken the capital markets authourity to declare what 'everyone' knew was happening at Francis Thuo. I think it is discouraging what is still an opportunity for Kenyans to invest and create wealth. They seemed all too shy to state the obvious - trading illegally in clients shares.
Don't get me wrong - Kenya is not a unique case, it is happening everywhere. But it does not have to be the end
So personally given the fact that I am far from Kenya, the time lag that exists when dealing with brokers - it is hardly a viable way of investment for me. (Who do I need to sleep with to get some service?) I actually met individuals who have made 'good' investments and are doing fine - but they always had someone they knew who handled their business.
You don't just walk into a stock brokerage firm and get service are you stupid?!
Conclusion:
In my opinion the problem at NSE/CMA is that (don't quote me here!) it has turned out to be an old boys club. Familiarity. The major players have been there for far too long to the extent that I think we need fresh blood generally that can push for reforms and be stringent on monitoring the stock brokers. (The whole country needs an overhaul - sorry no politics here!)
I know I might be alone in this but I believe same an auditor should not only state his independence - he should actually be seen to be independent. Which I honestly has aroused my suspicion.
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