Cable & Wireless ‘Amalgamation’ and Lack of an Operational Barbados Stock Market

Submitted by Crusoe

The Nation news reports that C&W is seeking to purchase all remaining shares in the company, from minority shareholders ”Under the proposed amalgamation, shareholders will surrender their shares in Cable & Wireless Barbados in exchange for a cash payment of BBD$2.86 for each common share.”

For a company that has not paid a dividend for years, yet made substantial profits, how can such a low share price be substantiated?

Surely the FSC should examine the calculations supporting such a share price, including the expected future earnings potential of the shares, as a share price should be calculated.

That C&W Barbados has not paid a dividend in years would, while making profits, is shocking, would surely not be allowed by shareholders in North America (the directors would have been roasted, as NA shareholders in any company expect a dividend every quarter) and this ridiculously low share price merely adds insult to injury.

What exactly is the FSC in Barbados doing to protect minority shareholders?

This event adds credence to the assertion that there is no real stock market in Barbados, that any semblance of such is a veneer, with no real possibility of small shareholders earning via dividends or share appreciation. Add to this, that profitable companies locally are mostly privately owned and the whole thing becomes a joke.

If one believes that assertion and I do, then the conclusion is that Barbadian citizens should be allowed to invest in international stock markets, to have every opportunity that others have. Handcuffing Barbadians in using their earned income to invest is idiocy. Government policy on investments, limitations on overseas investment, is nonsense and needs to change.

There is not and will never be a viable stock market in Barbados.

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62 Comments on “Cable & Wireless ‘Amalgamation’ and Lack of an Operational Barbados Stock Market”

  1. Bernard Codrington. July 27, 2017 at 10:34 PM #

    How can we have a small public sector with GOB having to setup and manage institutions to protect citizens from every business risk?

    Like

  2. David July 28, 2017 at 12:08 AM #

    @Bernard

    Don’t we have the FTC setup for the purpose?

    Like

  3. David July 28, 2017 at 12:15 AM #

    Does the average Bajan care about this matter? The lack of interest in a matter like this exposes our financial ignorance.

    Like

  4. Paradox July 28, 2017 at 12:40 AM #

    Where was the FTC in protecting the citizens when the BNB, now the Republic Bank, not too long ago decided that minority shareholders had to surrender their shares in exchange for payment?

    David, I can remember BU blogging on this matter.

    “What exactly is the FSC in Barbados doing to protect minority shareholders?”

    Answer: Not ONE shrt!

    Like

  5. David July 28, 2017 at 12:44 AM #

    @Paradox

    Isn’t there a rule that forces minority shareholders to sell if the entity is able to gain x % of the shares outstanding?

    Like

  6. Paradox July 28, 2017 at 12:51 AM #

    “……while making profits, is shocking, would surely not be allowed by shareholders in North America” or Europe.

    I can vouch for above statement. I have friends who bought minor shares in Europe and North America many years ago. They are still receiving dividends today and have not been asked or forced to surrender them.

    Like

  7. NorthernObserver July 28, 2017 at 2:30 AM #

    My question is….how many shareholders of the 20% of C&W B’dos not owned by C&W WI, went to the annual meeting and made their dividend case known? How many wrote to the media and made a case? How many tried to organize a group? How many did nothing and are now crying wolf?

    When Liberty bought C&W, knowing that Liberty is not a publicly traded firm, how many figured this was going to happen and got together and “pumped the stock” a little?

    Like

  8. David July 28, 2017 at 5:34 AM #

    There was a shareholders group headed by Douglas Skeete, what has become of it? Looks like he got fedup with flogging a dead horse?

    > > >

    Like

  9. Bush Tea July 28, 2017 at 6:34 AM #

    Brass bowls have NO INTEREST in ownership.

    Ownership is something that is of interest to REAL PEOPLE, who have a positive SELF-IMAGE and who have not resigned themselves to be slaves and serfs of others as a matter of history.

    Until Bajan brass bowls become AWARE of themselves ….become aware of their TRUE history …. become aware of their unbelievable POTENTIALITIES …. we will continue to go after ‘pay raises and bonuse’ and other ‘slave-perks’, and to show NO INTEREST in ownership and in building LEGACY for future generations …. which is what DEFINES true HUMAN character.

    Like

  10. Pachamama July 28, 2017 at 8:07 AM #

    Bushie

    Thanks for saying, in plain terms, what we tried so to do.

    For at the end of the day this and this alone is all that matters, if we say we are a nation.

    Everything else is BS.

    Like

  11. Alien July 28, 2017 at 8:13 AM #

    Shareholdings are on page 13 or 16 of 80 of the below link. The NIS cannot afford to be accepting less that the best possible return on its investments and the same goes for trustees of pension funds and representatives of shareholders of mutual fund and corporate investors. C&W in Barbados reported that it was not paying dividends to finance capital investment, but, at a first look, the pricing of that capital investment in terms of expected cash flows seems to have been overlooked in preference to a comparison to the trading price on the local “stock market”.

    https://discoverflow.co/sites/discoverflow.co/files/pdfs/2016_cwb_annual_report.pdf – page 13 or 16 of 80

    Like

  12. Gabriel July 28, 2017 at 9:03 AM #

    A Stock Exchange trading 20 shares is so ridiculous but that is what we have.BS&T,BL&P,BHL are typical examples of a stagnant stock market here.Lack of competition,one-sided and biased captains of industry, a risk-averse-from-experience majority people,interlocking closed shop directorships all combine to coalesce into a dull marketplace and undervalued shares.Ask Massy or Emera or Banks where I held shares for 56 years and was forced to surrender them.

    Like

  13. NorthernObserver July 28, 2017 at 10:51 AM #

    Also noted from the Annual Report, and this coincides with a point made by Pacha in another thread, relating to shareholders who represent “many”; getting a Board seat (referring to pension/mutual funds, workers, representatives “of the people”) Here, Sagicor has a seat, and their representative attends ONE of the FOUR BoD meetings, and 1 of 3 Committee meetings??? So you get the voice, and then you do not show?

    And go to P39, sec 5 and you will note these Directors get paid. We are not told if this remuneration relates to attendance or only for being duly elected.

    Like

  14. Crusoe July 28, 2017 at 11:45 AM #

    Thanks all, good observations and fruitful comments from all above.

    What bothers me greatly, is that all of what Bush Tea fairly calls ‘ownership’, while we are discussing the stock market directly, is also tied in to how NIS funds are invested and dispensed, the limitations on foreign investment by locals, the narrow areas for locals to invest generally.

    Maybe I am missing a few glasses of the koolaid, but I am astounded that, as far as I am aware, the Minister can direct investment decisions / funds dispensation from the NIS.

    There is no way that such power should be vested in one individual, for a critical fund, that all of Barbados’s workers have invested in, throughout their lives. And for many, this is their only hope for a pension in their retirement.

    Add to that, a status where locals cannot freely invest in stock markets in US and UK etc, and the Barbados citizen is basically working in a scenario where his earnings (profits) are held captive, with limited investment potential, while ‘his’ contributions are at the mercy of political choice. Bear in mind, foreign entities can invest locally and then repatriate both profits and original investment. No issue with that, but why penalize the Barbadian, by not allowing his investment overseas?

    As far as I am concerned, this is insanity. Bear in mind too, that this is not a BLP / DLP issue, this is an ideological issue, related to the structure of the economy and working practices.

    So, we have a situation where:

    there is no enforcement on companies making profits to be accountable to minority shareholders
    investment opportunities are limited for Barbadians, compounded by the first point
    contributions towards one’s pension are at the whim and fancy of ‘whomever’
    all of this compounded by the recent legislation stipulating that the majority of investments held by pension funds must be held in Caribbean entities (as opposed to a broader international portfolio).

    A very strange scenario overall, which I consider to basically hold one’s earnings captive.

    Of course, some will / may counter with an argument that Barbadians need to invest in venture capital, in entrepreneurs etc.

    All well and good, but considering the first two points above, as well as a general investment point that one should invest only if it makes economic sense vis-a-vis a reasonable rate of return etc, I really do not accept such an argument as holding water.

    Really, the situation is quite discouraging to those who wish to seek opportunities as broadly as possible and also to ensure that their investments are held in a transparent and accountable manner.

    Lastly, aside from you all above, who obviously understand where I am coming from, I wonder if we have been left out of the koolaid run, because it would appear, as David says, that we are in the minority who think that this is an issue.

    Like

  15. Bernard Codrington. July 28, 2017 at 12:05 PM #

    @ David

    We are constantly ignoring the fact that there is a new capitalism. It has gradually been financialized since the 1980s. My advice to the remaining shareholders in Cable and Wireless is to bargain for the highest price possible. The fact that no dividends were declared for a long time should have been a red flag to them. Has this not happened before on the local stock market? Do we not learn from history?

    @ Bush Tea at 6 :34 AM

    “Brass bowls have no interest in ownership” Is that why Hilton, Hyatt and Wyndham allow GOB, and Maloney to build and own hotels? Time for other Barbadians to become brass bowls or not? Just asking ?

    Like

  16. David July 28, 2017 at 12:23 PM #

    @Bernard

    Are you not focusing on the symptom? Many Barbadians hold shares for the wrong reasons. Even if they buy for the right reason they lack the literacy to force these issues at shareholder meetings. We observe this also playing out in the media where for the exception of Pat there is no financial coverage.

    Like

  17. Pachamama July 28, 2017 at 12:28 PM #

    Northern Observer

    Obvious you have more than average knowledge and a passing interest in these matters.

    In the case of the ‘big six’ in Barbados there was never a deep culture of activism as shareholders or small shareholders. That was White people’s business

    In the case of the then Mutual active efforts were exerted to prevent policyholders from attending board meetings, particularly along racial lines.

    Like

  18. Bernard Codrington. July 28, 2017 at 12:48 PM #

    @ David at 12:23 PM.

    To quote Jeff C . I can only deal with what you have put before me.

    You have put a symptom and I tried to deal with it. The vote is determined by the number of shares. If one is a minority shareholder should one have the power to put at risk the larger investments of the majority share holders?
    The shareholders are shareholders to earn a profit either through dividend payments or capital gains through sale of the shares.
    The minority share holders were not getting any dividends.
    They may or may not be able to salvage their investment by selling if the present shares are worth a multiple of what they bought them for.

    The fundamental issue is that if one wants to be part of an ownership democracy ,one must be prepared to take individual risks and not to rely on the taxpayers to bail one out when the downside to the investments materializes.

    Like

  19. NorthernObserver July 28, 2017 at 12:57 PM #

    @Crusoe

    several valid comments.

    The NIS has several funds, but only the main fund invests in equities
    http://www.nis.gov.bb/investments/

    the NIS has been discussed on BU many times, in the last few years. They ceased posting their Annual Report on their website, and I am unsure if it is available elsewhere. I would assume (u know potentially make an ASS out of U and ME) their investments are made under professional direction, and selected Board members oversee this. Not at the sole discretion of the Minister.

    I suspect this is not a matter they wish to hide. More likely the inner workings of their role as a lender to the GoB.

    Large investment bodies, like Sagicor, and maybe the NIS, do have permission to invest a limited amount offshore. For the individual this creates a Fx challenge. We cannot buy shares on the NYSE with Grantleys.

    I live in canada, most of the time, and financial ignorance is a widespread phenomena. Having volunteered at a credit counselling operation, you have no idea the thousands of people who have credit cards and lease automobiles that have NO CLUE how they work. They couldn’t calculate simple interest owed to them if they tried. Stocks, bonds or T-Bills are well beyond them.

    When we listen to our publicly elected officials, and the frequent and common mistakes they make on financial matters, is it any surprise the average citizen is clueless??

    Liked by 1 person

  20. David July 28, 2017 at 1:01 PM #

    @Bernard

    Don’t fault your last comment, however you seem to be trivialising the degree of fairness the market should treat minority interest whether the regulator or the market at large. Should it be accepted that minority shareholders surrender to market risk and that tension should not be placed on stakeholders in the process to nurture the financial ethos required to grow a diverse and robust investment market?

    Like

  21. Bernard Codrington. July 28, 2017 at 1:02 PM #

    Pachamama at 12:28 PM

    You and Bush Tea are my favourites on this Blog. Your references to history are so spot on, they defeat a lot of long talk and rhetoric..

    Like

  22. David July 28, 2017 at 1:04 PM #

    There is an NIS Investment Committee. Who are the members?

    Like

  23. NorthernObserver July 28, 2017 at 1:27 PM #

    @Pacha

    Let me ask you. What were the issues with BMLAS?

    Appreciate, demutualization (sp?) is the conversion of rights as policy holders to shares. Policies remained intact. Who rang the bell, and what was being sought?

    And I if I recall correctly, the issue of the meeting, was the Board wished to consider deM in private and not in public.

    Yes the other business were run with an iron fist.

    Like

  24. Bernard Codrington. July 28, 2017 at 1:29 PM #

    @ David at 1: 01 PM

    A market is a place where buyers and sellers are free to take part. They should only enter it if one knows what one wants to buy and what one wants to sell. One should know the commodity well and the risks attached to buying it. You may ask for advice but the decision is always the buyers. That is the realty. Life has upside risks and down side risks
    The only way to avoid risks is to die.
    GOB has in place regulatory bodies to insure that financial markets do not destroy nor disrupt the total economic system.

    Where did you get the notion that a diverse and robust investment system is necessary for economic development and welfare? Small size, despite what Hal believes, does put constraints on imitation of what takes place in North Atlantic countries.

    Liked by 1 person

  25. David July 28, 2017 at 1:37 PM #

    @Bernard

    Curious if you are of the view the regulatory culture and framework is adequate to fairly support the market you described.

    Like

  26. Gabriel July 28, 2017 at 1:43 PM #

    When you work all over the Caribbean for a multi million dollar institution that had a history of good management and highly trained personnel operating in very competitive markets and you take and participate in well informed decisions and a jackass canecutter cum salesman cum political tout cum bosspimper was allowed to assume your autumnal future,then you know Barbados is run by some of the biggest brassbowls you can find anywhere in the Caribbean.Gaul bline allodem sumsbeeches and chopsutters.Barbados in the hands of the halt,the lame and the blind.Nothing but a bunch of barefoot bagblind hoes.

    Like

  27. Bush Tea July 28, 2017 at 2:38 PM #

    LOL
    Language…language…
    Tek it easy Gabriel…. You are named after an angel….
    You are not a stinking bushman..with a big-ass whacker… 🙂

    @ David
    Don’t you see that Bernard is a realis- after the order of Dribbler? His perspective is driven by the REALITY on the ground … and the truth is that investment by minority shareholders is EXACTLY similar to joining the Lodge in order to be favoured with some benefits from time to time.
    The REALITY is that you are being exploited by the albino-centric system of greed and spite – and you quickly find yourself in deeply over your head, and in fact, just another pawn of the system.

    The majority share owners have ABSOLUTE control of the organisation. THEY call all the shots. Your only hope is that whatever they scrape for themselves will redound in a material share for you…..and that once used to be the case…generally.

    Nowadays, however, they can play complex games to minimise profit declarations (NOT REAL PROFITS MADE); to inflate ‘expenses’; and to hide retained earnings … such that actual dividends declared (and taxes paid) are zero or even negative.
    Needless to say, these ‘expenses’ often involve strange payments to their ‘other’ businesses or associates… leaving minor shareholders holding the shitty end of the stick….

    When things start to look like the pyramid is about to topple, they ‘buy out the small shareholders’ …so that no one is left to ask questions…and move on to the next scam…

    That the Banks holdings shares so publicly moved…by so much…. with such ease, … would have set off alarm bells in NON-BRASS-BOWL jurisdictions…. but not bout here….

    So Bernard is right (so are many Bajans for NOT investing is such businesses)
    What should they do instead?
    if not rich-as-shiite (like Bushie) to BECOME a major shareholder?

    Ask him about CO-OPERATIVES…. where “minority shareholders” do not exists….
    Also ask him why this model has not taken off in Barbados…

    ….but try not to make Bernard sin his soul with a lotta cussing…. he don’t have a whacker either …and is a decent chap.

    Like

  28. David July 28, 2017 at 3:00 PM #

    Related party transactions continue to be a challenge.

    The Cooperative Model for whatwhat ever reason is not a top of mind option for Barbados mainstream. Interesting if we consider quite a few members of the political class are involved in the movement.

    Like

  29. Hal Austin July 28, 2017 at 4:24 PM #

    Bernard,
    I am surprised that you should think that in free markets the is information symmetry. There is not, that is why we need regulation.
    One of the myths of law is that two parties to a contract are equal. You know in the real world that is usually not true.
    Minority share holders have legal rights which are sometimes ignored in Barbados, which is why I have called for new companies legislation. It is not rocket science.
    Companies legislation was first framed in the1920s, the environment we operate in now is totally different ie Enron.
    It also shows up one of the weaknesses of our trade unions. Just look at Banks and the silence of the unions and the way the Mutual was hijacked. We must move out of the political and legal obsession and develop a financial awareness.
    We lost the Mutual because we did not understand the financial argument. The same problem with Clico. Take lawyers and politicians out of the equation, they are part of the problem.

    Like

  30. de pedantic Dribbler July 28, 2017 at 5:42 PM #

    Crusoe, your assertions are complex and a much more nuanced than you appear to offer in your brief piece. You said:

    -“For a company that has not paid a dividend for years, yet made substantial profits, how can such a low share price be substantiated?”, and

    -“…the conclusion is that Barbadian citizens should be allowed to invest in international stock markets […] Handcuffing Barbadians in using their earned income to invest is idiocy.”

    As you know a company share price is not only a reflection of balance sheet ratios reflecting strong growth and profitability but also in very practical terms the market desire (demand) for their shares. For all practical purposes all the listed Bajan companies are ‘under-demanded’ and ‘undervalued’. That can be stated unequivocally based squarely (but not only) on recent acquisitions – that demand part of the equation- where purchasers came in and offered substantial premiums on the listed share price.

    And dividend payments can be a long winded debate. Your cryptic comment does not adequately capture those nuances either.

    In short, your first query given our very limited financial market is as some US late-night comedians would say: ‘meh’…or in Bajan: ‘so wha you expect, doh’!

    On that international investment matter, you really need to flesh that out in practical terms….nothing really stops any ‘enterprising’ Bajan from making international investment…well other than exchange control restrictions (as was noted above by BC).

    But they are ways to circumvent that legally (Fortress Fund, in one perspective as an example) and of course practical other options than ‘skirt’ the law.

    In my view, if so many Bajans can find US currency (legally and law-skirted) to travel to Disney World or jet off to London or wherever then too if they are so inclined they can set up an online investment a/c fund it and off to the ‘races’ they are.

    And on the other point noted re VCs and the like. Why are they not more of them in B’dos stepping into the breach you highlighted? Why haven’t folks like Bushie and his coop modellers (what is a VC really if not that) been unable to use some of their high-net worth discretionary income to set a Bajan market abalze with activity!!!

    David spoke about the Skeete shareholder group, but aren’t groups like that exactly the vehicles that ‘corporate activists’ use to drive dividend payouts at firms like C&W and then as they mature become the breeding ground for serious players in seeking those with high net worth to fund venture capital teams.

    It can be argued that in a local setting such teams or investment groups would be the ideal vehicle to fund overseas market investments.

    And yes “There is not and will never be a viable stock market in Barbados”. How can there really be. Good heavens, there are a handful of companies listed; of that handful there are one of two traded on a daily basic; of those few traded only a trifling amount of shares change hands.

    To call that a stock market is like saying that the Wildlife Reserve in St. Peter is a zoo… Yep, there are animals to see and some are wild and exotic but fah real…a zoo comparable to one in London or New York….let’s get practical.

    Like

  31. de pedantic Dribbler July 28, 2017 at 6:18 PM #

    @Bernard, well said above at 1:29 PM. And @BushTea I can also get on board with most of your 2:38 PM…except one part.

    No long talk on that again but the way you present on coop matters oversimplify as it relates to success of failure in Bdos. We have had these tussles before so suffice to say: US Savings and Loans debacle…balance that of course against the wild success of later Credit Unions et al world wide….in sum, it’s not the system alone that marks great success but the people executing said system. Enough on that.

    @David, you have me perplexed with some of your retorts to Bernard…he responded well, so just clarify the rather strange remark that: “… Many Barbadians hold shares for the wrong reasons. Even if they buy for the right reason they lack the literacy to force these issues at shareholder meetings. We observe this also playing out in the media where for the exception of Pat there is no financial coverage.”

    Realistically on what basis are you making that comment?? What other practical reason other than a long term investment would Bajans buy shares???

    Above I believe it was Gabriel who said he owned shares for over 50 years. My old man was no banker or financial guru but he also had the ‘literacy’ eons ago to buy BL&P shares which led to purchase of BS&T as well.

    Quite sure they were not the only two Bajans who did that.

    The lack of financial coverage at the broader public level is a function of those willing to expend energy and cost to produce it for those willing to ‘pay’ to get it.

    As long as forever there ‘used to be’ a program on the then Rediffusion by Merril Lynch (as memory serves) on investing and such…of course that’s one small example but the point is that even way back then there were avenues to delve into those things for those so interested.

    I also recall there was/is the Broad St. Journal and the Nation’s Business Authority which offer financial and corporate news for those that inclined…not too mention the various newsletter from the local accounting and consultancy firms that can be purchased

    In short, seems to me that Bimmers are no more or less ‘illiterate’ about fin news than those Canadians which @Northern ‘ratted-out’. Neither less savvy that the Greeks who ran their country to ruin with wide-spread tax evasion or any other world citizen.

    Those of us who want to know, find the data and get in the know..those who don’t, do not…..

    I can say not a ‘pang’ about bashment music or the latest dub craze etc…I “lack the literacy to force these issues” anywhere…but the media does report on that sort of thing daily doesn’t it….because it SELLS daily papers….financial reporting DOES NOT.

    Like

  32. David July 28, 2017 at 6:30 PM #

    @Dee Word

    Agree with your point that Bajans can use their forex allowance to start investment portfolio in US, CAN or UK to create wealth instead of the shopping and vacation jaunts.

    Like

  33. millertheanunnaki July 28, 2017 at 6:35 PM #

    @ de pedantic Dribbler July 28, 2017 at 5:42 PM
    “And yes “There is not and will never be a viable stock market in Barbados”. How can there really be. Good heavens, there are a handful of companies listed; of that handful there are one of two traded on a daily basic; of those few traded only a trifling amount of shares change hands.
    To call that a stock market is like saying that the Wildlife Reserve in St. Peter is a zoo… Yep, there are animals to see and some are wild and exotic but fah real…a zoo comparable to one in London or New York….let’s get practical.”

    What a great twist of irony to use such a witty analogy of the zoo to put things in their right perspective.

    Reminds one of the comical use of the term ‘Highway’ as is known internationally to describe the ABC and other extended makeover cart roads.

    One is left to wonder about the imminent demise of the corporate secretarial service unit calling itself a stock exchange.

    How is the staff paid and operating expenses covered these days now that the major companies like Massy and Emera have shut shop to the public as far as trading in shares is concerned?

    Like

  34. millertheanunnaki July 28, 2017 at 6:49 PM #

    @ David July 28, 2017 at 6:30 PM
    “Agree with your point that Bajans can use their forex allowance to start investment portfolio in US, CAN or UK to create wealth instead of the shopping and vacation jaunts.”

    D’accord aussi!

    Coming very soon Bajans will come to fully appreciate the vital value of scarce forex.
    When people are ‘forced’ to earn what they want to spend overseas then the adage of ‘not missing the water until the well runs dry’ will come home to them like chickens about to roost.

    Like

  35. David July 28, 2017 at 7:02 PM #

    The BSE is ranked 67th out of 76 stock exchanges in the world tracked by Stock Market Clock. If any consolation it is the third largest of the four in Caricom.

    http://www.stockmarketclock.com/exchanges/bde-barbados

    Like

  36. Bernard Codrington. July 28, 2017 at 9:20 PM #

    David @7:02 PM
    I am surprised that the BSE was even listed . The economy of Barbados is too small and the culture does not encourage wide shareholdership.
    Many local companies, traditionally ,have been very tightly held. As was mentioned in one of the interventions above many of them were undervalued using the conventional method of company evaluation. Moreover,the share prices did not reflect this.Hence my advice to Cable and Wireless minority shareholders. A company does not buyback shares unless there is a financial advantage for someone.

    Like

  37. Bernard Codrington. July 28, 2017 at 9:25 PM #

    @ Hal

    I never stated nor implied that there was symmetry in stock markets . If there was there would be no market. Every participant assumes that he has better information than the other participants.

    Like

  38. Hal Austin July 29, 2017 at 3:23 AM #

    Bernard,
    Apologies. I was doing the Bajan thing of interpreting what you have said. On another matter, I have long called for a single Caricom stock market operating in real time.

    Like

  39. Crusoe July 29, 2017 at 7:04 AM #

    de pedantic Dribbler July 28, 2017 at 5:42 PM #

    Fair points all. Yes, valuations and dividends involve more than I mentioned, nevertheless, my simplified version still holds. Major profits and no dividends for years? Simply does not work.

    And yes, on the valuations, indeed a company may be more valuable than ‘demand’ sets the price for, that is exactly what makes the local trading scenario ‘unnatural’ and no place for the minority investor.

    Your point on forex allowance has some merit, but restrictions on forex generally still largely handcuff the citizen who wishes to invest more than the ‘minimum.

    $7,500 (US3,750) over a long time can build up, but it still amounts to being handcuffed, as that is a limit on all such spending.

    Like

  40. Bernard Codrington. July 29, 2017 at 9:28 AM #

    @ Hal Austin at 3:23 AM.

    No need for apologies. I am a Bajan and I know myself and my people. As Bushie would say I have no whacker. I believe you wanted to lift the level of debate a little bit. And that is OK with me.

    Like

  41. Hal Austin July 29, 2017 at 10:06 AM #

    Bernard,
    Thanks. It is sometimes very difficult trying to raise the quality of discussion above personal abuse and speculation. Every one has a view.

    Like

  42. David July 29, 2017 at 10:11 AM #

    @Hal

    Why are you and Bernard of the view that your interventions qualify to lifting the debate on this particular topic? So far ALL the contributions have been constructive. You guys need to stop being so sensitive. This is the Internet, it is what it is. Make your comments and move on.

    Like

  43. Hal Austin July 29, 2017 at 10:17 AM #

    David,
    You are the captain of the ship. Equally, the standard of education in Barbados is a reflection of the quality of teaching.

    Like

  44. Bush Tea July 29, 2017 at 10:38 AM #

    Hal, …the second-in-command of the ‘brigade to unmask contributors’…. talking about raising the quality of debate ‘above personal abuse and speculation’….?

    Shiite!!!
    Any time he, or his commander in Chief – Carl Moore, gets a whiff of who a blogger is, THEY start with the personal stuff…

    Look!!!
    Bushie don’t give a shiite!! …. cause wunna won’t listen to the bushman…
    Duh give the bushman a whacker… HE WILL WHACK.
    Who don’t like um….. just keep yuh heads low….
    Lotta shiite talk about ‘raising standards of debate.’!!!!

    What raise what standards of what debate what??!!
    … All o’ we talking shiite… none more so than Hal

    Wunna have ….
    …NO clue about the purpose of life
    …No understanding of the lotta shiite befalling us all around
    …No comprehension of the’powers-that-be’ who are currently wrecking havoc…
    …No idea of how to escape the chaos quickly besetting us…
    …No hope of salvation – in the face of OBVIOUS doom

    Wunna do not even GET the point of WHY life exists on this earth in the first place…
    ….so wunna can ONLY be talking shiite!!!

    As to Bushie…. When is Rome, the bushman will do as the Romans do…. and talk shiite too..
    wuh Bushie like buff sport too…
    But remember this –
    Bushie GOTTA whacker….
    Wunna ain’t got shit…..

    Like

  45. Alien July 29, 2017 at 10:42 AM #

    Looking at section 186 on page 105 of the companies act, CWWI must get agreement for 90% of the shares not already held to force the acquisition of all shares not already held. This will depend a lot on how the NIS Sagicor CIBC and other pension fund, mutual fund and corporate investors respond to the initial inadequate offer. It is generally known that the initial offer is way below the true value of the future realizable profits.

    Section 186 on page 105 – https://www.investbarbados.org/docs/Companies%20Act%20-%20CAP%20308.pdf

    Like

  46. Bernard Codrington. July 29, 2017 at 10:46 AM #

    @ David at 10 :11 AM

    Who is being sensitive? Who said the contributions were not constructive? I spend a considerable part of my life as an enabler. I am a proud Bajan.

    Like

  47. Bernard Codrington. July 29, 2017 at 10:54 AM #

    Alien @10 :46 AM

    Much appreciated. I have a good idea how this will unfurl. But we will wait and see.

    Like

  48. David July 29, 2017 at 11:55 AM #

    @Bernard

    Responded to your earlier comment to Hal that he was trying to lift the debate which suggested that ??

    @Alien

    Wouldn’t trustees of the pension Funds you mentioned want to push for a higher share price especially in a low yield market?

    Like

  49. Alien July 29, 2017 at 12:04 PM #

    Yes, that is what the smaller, individual shareholders expect.

    Like

  50. Bush Tea July 29, 2017 at 12:16 PM #

    @ David
    Wouldn’t trustees of the pension Funds you mentioned want to push for a higher share price especially in a low yield market?
    +++++++++++++++++++++++++++++++++++++++++++
    Would you?

    …if you were an albino-centric trustee who had a dastardly interest in acquiring more cheap shares (by gobbling up the minority shares)…prior to a really big future sellout to a (currently non-public) buyer?

    Remember the initial low price recommended by the board to shareholders of Banks?
    Do you REALLY think that the Board were dumb enough – not to know the true value…?

    Same thing with Emera and BL&P…

    Like

  51. Alvin Cummins July 29, 2017 at 12:42 PM #

    David,
    Bajans in general do not pay attention to the stock market, and the purchase and sale of shares in companies. They do not consider shares in a company as a commodity to be bought and sole. the history of share holding here is that shares are bought, wait for dividends to be paid annually, and pass them on to the children. Imagine holding shares in a company for 56 years in the expectation od annual dividends. Foolishness. Maybe those shares could have been sold and shares in another company, more valuable and paying higher dividends bought, to realize higher returns on the investments. When Pine Hill Dairy shares were first being sold, they were sold at $i.00 per share. As the company profited, shares were split, and the value per share increased. When the value of the shares reached $8.00 per share I decided it was time to sell. I made a handsome profit on the number of shares I originally held. Hoe many people look at the shares listed on the local market? How many people have discussed shareholding with a local broker? How many people who have shares in companies listed on the local stock market, attend annual meetings, get advice on the annual reports, and ask questions at the meetings. The buying and selling of shares is private. government has no hand in the operation of stock exchanges except to ensure that adequate legislation is in place to protect shareholders from nefarious speculators. C&W (Barbados) is a subsidiary of the larger C&W international. Local shareholders are subject to the agreement under which they acquired their shares. It is up to the shareholder to acquaint himself/herself, with the terms. Government has nothing to do with those terms to which the shareholder would have agreed, so it the terms allow the company to demand, and require the shareholder to sell shares the shareholder has no alternative. Check BS&T, BL&P, etc.etc. Bajans should have never allowed BS&t to fall into for3iwgn hands. There is enough capital in Barbados that associations, Pension Fund managers, and individuals getting together, should have been able to obtain the funds necessary to buy the company. They should even have been ablate strike a deal with a foreign investment bank to obtain such funds. Cajans are too lazy to do the work necessary to save themselves.

    Like

  52. David July 29, 2017 at 12:47 PM #

    @Alvin

    Your comment is one sided. There is the other side i.e. the market being manipulated by a narrow interest.

    Like

  53. Alvin Cummins July 29, 2017 at 12:54 PM #

    Dribbler,
    Every night on CBC there is a report; meagre and short on adequate information, on the performance of the Barbados, Trinidad, and Jamaican stock exchanges. How many people, including you, pay attention to it and demand more information?

    Like

  54. Hal Austin July 29, 2017 at 1:10 PM #

    David,

    “Wouldn’t trustees of the pension Funds you mentioned want to push for a higher share price especially in a low yield market?”

    Plse explain!

    Like

  55. de pedantic Dribbler July 29, 2017 at 1:19 PM #

    Really Alvin….you jest …badly so too.

    Does ANYONE interested in financial markets source their data principally from limited news reports on ANY TV or cable news program.

    Whether in BIM, T&T or the UK you source your input from myriad other places. A news report is just to inform on some most recent event.

    A CBC or VOB report as a report for local market investment decisions….what a laff!

    Like

  56. millertheanunnaki July 29, 2017 at 1:29 PM #

    @ Alvin Cummins July 29, 2017 at 12:42 PM
    “Government has nothing to do with those terms to which the shareholder would have agreed, so it the terms allow the company to demand, and require the shareholder to sell shares the shareholder has no alternative. Check BS&T, BL&P, etc.etc. Bajans should have never allowed BS&t to fall into for3iwgn hands.”

    You lying hypocrite, you!

    Who sold their shareholding in BL&P (Emera) for a mess of forex pottage thereby forcing nationalistically enthused minority private/individual shareholders to give up their investment in one of the country’s major economic assets of strategic importance?

    Why did the current DLP administration sell off their minority holdings in the erstwhile National Bank facilitating the name change to Republic Bank now fully owned by Trinidadian investors?

    You might want to argue that OSA (after Sir Lloyd) made the avoidable mistake of facilitating the “de-barbadianization” of commercial entities strategic to the indigenous profile of the economy.

    But isn’t it your administration which is facilitating its death and soon-to-be funeral when the likes of the GAIA are sold to ‘foreigners’ for 30 pieces of forex?

    Like

  57. Alvin Cummins July 30, 2017 at 2:00 PM #

    Miller,
    before the sale of the shares in the Natial bank fully to RBC in Trinidad, and ultimately Massey, I remember when the sale of the National Bank shares first went on the market. I advised a friend from Atlanta who was here on holiday, to buy some of those shares.He followed my advice. then when there was the second offer for the shares, he sold them and made a tidy profit. That iS how the stock market works. The belief from long ago; a legacy of the monied people in the private sector was to buy shares, if you could get them, and hold on to them. A stock market has to be vibrant with shares bought and sold every day. Bajans do not like to sell the shares they hold (own). They aRE NOT encouraged to buy and sell; even the money managers, who should be seeking to get the best return for the shares they hold; not necessarily through interest or dividends, but through judicious acquisition of assets that will bring better returns. When Warren Buffet started Berkshire Hathaway, he used the funds at his disposal to buy and sell companies, depending on their balance sheets, and forward planning. He didn’t buy and hold, except certain stocks that had long term potential earning power; not necessarily interest or dividing bearing stocks..
    And talking about selling for forex, is this not the reason given for the sale of the BNB, by your administration? Is this not the reason people like you have been pushing for privatization? Who is the hypocrite? You say”…forex pottage thereby forcing nationalistically enthused minority private/individual shareholders to give up their investment in one of the country’s major economic assets of strategic importance?’
    BL&P shares have been trading on the exchange for years. Nobody prevented the “enthused” individuals from buying them up. If it was advantageous to sell the shares, that is what you buy shares for; to sell at an advantageous time, or in time of need.
    Why did the “erstwhile” investors buy the BL&P shares? Because they saw it as a wise investment. Why was this lost on Barbadian investors, who have hundreds of millions sitting in the banks, getting little or no interest. Why do these same local investors scoff at buying Barbados Government savings bonds; which bear a higher interest rate than what they are presently getting, and which would support the same economy,that supports them and on which they depend. Simply because they/you want the economy to fail, and the government to fail?

    Like

  58. Alvin Cummins July 30, 2017 at 2:07 PM #

    Dribbler,
    I never postulated that the nightly news, or even reports on the television, or radio (Sagicor early business) should be a “primary source of business information. Shareholders should keep track of their holdings and potential future holdings, bu requesting and consulting information from the company itself, annual reports and further enquiries. Educate yourself fully. It is your money.

    Like

  59. millertheanunnaki July 30, 2017 at 3:14 PM #

    @ Alvin Cummins July 30, 2017 at 2:00 PM
    “BL&P shares have been trading on the exchange for years. Nobody prevented the “enthused” individuals from buying them up. If it was advantageous to sell the shares, that is what you buy shares for; to sell at an advantageous time, or in time of need.”

    “In time of need”, alright! Forex need, that is!

    Not on the part of many of the residual private minority shareholders but because your administration- by forcibly ‘divesting’ its share of the remaining holdings- put the other minority holders in a position where Emera could compulsorily acquire their less than 10% residual holdings. It was your inept administration which created the tipping point.

    Was that a move to create the environment where the former minority shareholders will be faced with the reinvestment options of idle cash sitting on the bank earning less than 1% or buy government junk bonds needed to pay public sector workers in order to stave off the inevitable cash flow crisis and to temporarily prop up your dying administration.

    You should find out if the same BL&P (now Emera) shares are traded on the local stock exchange and let us know so we can buy some with our tax refunds overdue since 2013.

    Like

  60. Alien July 31, 2017 at 7:59 PM #

    http://www.nis.gov.bb/investments/

    Like

  61. Alien August 1, 2017 at 3:08 PM #

    History repeats itself and shareholders wait on NIS (and Sagicor and CIBC) – again –
    https://barbadosunderground.wordpress.com/2011/01/10/emera-about-to-steel-barbados-light-power-co-ltd/. Have the reporters at the Nation and Advocate approached these entities about their likely response to the CWWI bid and what they believe to be an adequate valuation. By the way, Minister of Finance, soon these funds will be looking for a resting place if you plan to privatize anything.

    Like

  62. Gabriel August 1, 2017 at 3:33 PM #

    The diddering old fool Alvin dare to tell me how and where to invest and what decisions I should make with my assets.Jackass!Of course it’s the stuff of which the Dems are made.Failures and scam artists dare to advise.

    Like

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