New Zealand Exchange

Mediaworks About To Be Chopped Up Into Bits And Sold?

Congratulations are due to Mediaworks for appointing Mark Weldon to head their Group as CEO. He replaces Sussan Turner who left rather suddenly resigned and is exploring other career options.

Weldon has the perfect background for Mediaworks.   Ratings focused, driven, one way people management skills and effortlessly capable of building strong teams to enhance the shareholder value of an organisation.

Weldon has no background in media and the appointment suggests that TV producer director Julie Christie will continue to provide intelligence on the sector.

Such a comment by keyboard grump John Drinnan is particularly unfair.

NZX was the greatest reality soap opera in town under Weldon’s leadership, the casting couch of characters was enormous as disgruntled staff left and new bright eyed disciples were employed. ¬†Indeed Mediaworks currently does not employ anyone on your television or radio with a larger ego than Weldon, even Willie Jackson, Sean Plunket and Duncan Garner combined can’t compete. ¬†The clashes will continue to be ginormous and fill Drinnan’s column with rumours and innuendo for months on end. ¬†¬† Read more »

Is Radio NZ seconding Herald staff?

Who would know what Radio NZ is trying to say with this news?

Perhaps Bryce Johns has managed to get some of his “decent journalists, trained and skilled” new positions at Radio New Zealand.

RNZ

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Mighty River Power share price set at $2.50, Greens/Labour give discount to investors

The Green/Labour attempted sabotage of the Mighty River Power float was only partially successful. Sensible investors stayed the course and have now received a healthy discount for their shares...meaning they can buy more for the money invested.

Investors in Mighty River Power will pay $2.50 per share, the government said this evening.

Of the shares issued, 86.5 per cent will be New Zealand owned (spread over 110,000 shareholders):  26.9 per cent by New Zealand retail investors, 8.6 per cent by New Zealand institutions and with the Crown retaining a majority 51 per cent shareholding.  That leaves 13.5 per cent for overseas institutions.

The share price will raise $1.7 billion for government coffers. ¬† Read more »

How the NZX degrades itself

by Winslow Taggart

Mark Weldon did some great things with the NZX but under his stewardship, the NZX also degraded itself with a number of companies listed on its bourse.

Big listings that went bad like Feltex get all the media attention, but the other area that lets the NZX down is with joke companies that maintain an NZX listing when it’s pretty obvious that they are pathetic shells or fiscal three ring circuses.

Two good examples of this come from two very different types of mismanagement.

The first is that of Blis, a company that makes probiotic products. Priobiotics are “good bacteria” that help digestive tracts, prevent colds etc. Blis launched several years ago and proceeded to burn cash at a fearsome rate. Sales never took off like promised, and the share price has gone from just over $1 in late 2001 to 1c today. The supposedly very nice people who run Blis are scientists from Dunedin who have utterly failed to commercialise their product. It has failed as a company in its own right, and would be better to sell out to a health foods company who know how to market health benefits to consumers.

The second example is that of a financial advisory company called IRG, born out of the failed wheelings and dealings of Dorchestor Pacific and Viking Capital. IRG has announced just today a loss of $1.14 million, when it’s entire market cap is $1.55m! From a peak of 35c in early 2007, IRG is now worth 0.003c per share, in other words, less than a joke. IRG is ably chaired by some goose called Marvin Yee and run by Brent King, whose run-ins with corporate NZ are easily google-able, like this article here.

Putting aside the obvious point that people should be careful when considering investing in or using the services of a financial advisory firm that loses almost as much money in one year as their entire market cap, the NZX should really do the honourable thing and suspend this joke to at stop people from trading in something so pointless.

The NZX should bite the bullet and start notifying the joke companies on the NZX that if they don’t meet market cap, liquidity and fiscal requirements, they’ll be suspended. Here’s hoping Tim Bennett leads the NZX to focus on quality over quantity of listings.

Weldon for Tamaki?

Mark “Speedo” Weldon may be about to nominate for Tamaki. There have long been rumours of Weldon’s interest in being in a John Key led cabinet.

Mark Weldon is stepping down as chief executive of NZX Ltd, the operator of the New Zealand stock exchange.

NZX has just announced that Weldon told the board he will step down as chief executive in the first half of next year, after nearly ten years in the job.

God knows Tamaki needs a quality candidate and they haven’t had a cabinet minister since Muldoon and parochial interests scotched the last quality candidate in the form of David Kirk.

Interesting times.