As you are aware I am following the discussion on these stocks and it seems to me that the problem of brokers and management selling out of them is a real one. Very hard for a small time investor like me to put any faith in all this! I am attracted to FXF trust at current prices. What does the discussion group think? It seems to me that if you want exposure to such a stock you might as well have a large cap one with proven Mx (eg Packer clan) plus it also has fairfax stock to back it up if things on the interent stock float side get nasty. Problem is, even it's management seems to have been recently off loading stock. That is the problem with our market...we only find out about such things day's after..even weeks...when it is too late! There is definitely not enough accountability out there. if only we had ready access to such privy info! Seems the ASX has a long way to go to reach the same standards as the NYSE or NASDAQ. Yet more reason for fool.com.au
I think that it is necessary to undertake your own evaluation of investments. I do not particularly care for any directors of any public company in Oz, as I loathe all of them. Including the top echelon as the Packers etal! Generalised yes, but until I see otherwise I maintain this opinion.They deal with Other Peoples Money and they are not as accountable as they should be. I think the bad taste started in 1986 and I can list the star players (Prez of an AFL team - Lew in the Coles Myer affair - ex NAB Chairman - note where there is smoke there is fire) ... The old boys clubs never die!Bond was no different... he was gaoled. They have not changed their agendas. As regards certain stock guru's in Sydney who think they are good - if they were in the US they would be in gaol!It spreads from the top capitalised companies down to the bottom - to the brokerage houses and the stock guru's. It is called greed ... they dont do anything for nothing and the amount of share incentives issued is ridiculous... They are concerned about white knights, share ownership and the politics of the share register.This however, does not stop me from investing in companies. It just makes me more street wise and defensive with my hard earned cash! You buy on rumours and sell on fact! When a share price starts moving with volume there is a reason - the ASX have tried to stamp this out but they are hamstrung. They can suspend a company from trading but it is usually too little too late! How many times has a particular company's share been ramped and the ASX has issued their notices and the companies reply in the negative? Then 7 to 14 days later an announcement is made! The major sellers ===> family members and friends ... brokers in the know and their important clients!Remember also that there are also a number of share trading software packages available that highlight stock manipulation, these rely on the volume of turnover and the price adjustments - rarely wrong.You may be interested in the Shareholders Association in your State. This group tries to do what the Democrats were formed for initially, "Keep the bastards honest" Give them a call... the more the mightier!As regards Packer ... nobody cares to remember what happened after a certain Royal Commission some 23 odd years ago!
I agree..p.s. I'm all ready a member of the shareholders association...
What does the discussion group think? It seems to me that if you want exposure to such a stock you might as well have a large cap one with proven Mx (eg Packer clan) plus it also has fairfax stock to back it up if things on the interent stock float side get nasty.Why do they need to rip more money from the punters to invest through FXF in ventures that ECORP was designed for? I think Pbl is the safest way to go if your looking for that type of exposure, from the risk side if nothing else.The FXF has an interesting chart, but if I was going to invest, it would only be a short term punt. FXF TRUST 2000-03-27 ASX-SIGNAL-GHOMEX - Sydney +++++++++++++++++++++++++CPH Management Limited ("CPH Management'), the responsible entity andManager of the FXF Trust ("Trust"), announced today that it intendedto proceed with a proposal concerning an expansion of the investmentstrategy and capital of the Trust, subject to completion ofregulatory review and Unitholder approval.As part of the proposal, CPH Management intends to change the name ofthe Trust to CPH Investment Corp. James Packer, Kerry Packer, AshokJacob and Graham Cubbin will be appointed to the Board from whichNeville Miles has resigned. James Packer will be Non-ExecutiveChairman.Approval will be sought from Unitholders at a General Meeting to beheld in early May to, amongst other things:* Approve the proposed new fee arrangements which would be payable to the Manager, CPH Management, and comprise an annual management feeof up to 1.50% of the gross asset value of the portfolio and aperformance fee of 20% of returns achieved above a compound annualreturn of 10%. The proposed new fee arrangements are similar to thosecharged by US private equity and hedge fund managers.* Expand the capital of CPH Investment Corp, through the issue ofPartly Paid Units to raise up to $600 million, with a right to acceptup to a further $160 million in oversubscriptions (the "Issue").* Expand the investment strategy of CPH Investment Corp to enableinvestment in any sector, which CPR Management may at the timeconsider appropriate.* Access the investment and management expertise of the ConsolidatedPress Holdings Group ("CPH Group"), an unlisted public company groupcontrolled by Kerry Packer and big family, and be able to invest fora period of up to seven years to a level of at least 20% in all newinvestment opportunities made available to the CPH Group. Exclusionsfrom this right would include Publishing & Broadcasting Limited("PBL"), ecorp Limited ("ecorp") and the businesses of Hoyts CinemasLtd.* Approve the Manager's plans to initially invest up to $250 millionin a new subsidiary, which CPH Investment Corp will own with the CPHGroup. The new subsidiary will have the right to pursue 100% of allof the CPH Group's new B2B investment opportunities. The Managerintends that the new subsidiary will, subject to identifying suitableB2B investment opportunities, be listed via an initial publicoffering with a priority being given to CPH Investment CorpUnitholders.The rationale for the proposal is to provide Unitholders and others,including the public, with an avenue to invest in opportunities whichare not currently available to the public or through PBL or ecorp.For many years the CPH Group has made investments which have beenbeyond the core activities of PBL and, more recently, ecorp.PBL will continue to maximise value for shareholders in its coreactivities, which are consumer based, including television,magazines, gaming and entertainment and business-to-consumere-commerce through ecorp. Additionally, both PBL and ecorp willmaintain a clear focus on their existing areas of activity asoutlined above. As a result, investors will have a clear choice ofinvestment vehicles by which to pursue different and focussedopportunities; PBL, ecorp and CPH Investment Corp.The Issue will be lead managed by Merrill Lynch International(Australia) Limited and will comprise both a Public Issue and anInstitutional Placement. The Public Issue will be to existing CPHInvestment Corp Unitholders, existing PBL and ecorp shareholders,applicants offered a firm allocation by the Lead Manager and membersof the public.CPH Investment Corp Unitholders who were registered as Unitholders asat the end of 24 March, 2000 (and persons who had bought Units in CPHInvestment Corp on ASX by the end of that day but were not yetregistered) will receive priority allocation in the Issue of up toone new Partly Paid Unit for every one Unit held.PBL and ecorp, shareholders who were registered PBL and ecorpshareholders, respectively, as at the end of 24 March, 2000 (andpersons who had bought shares in PBL and ecorp on ASX by the end ofthat day but were not yet registered) will also each receive apriority. The extent of this priority will be determined, in part, bythe level of demand from existing CPH Investment Corp Unitholders.In addition to investing under the CPH Investment Corp PriorityIssue, the CPH Group will invest in a direct placement, so as tomaintain its existing 31% interest in CPH Investment Corp, andsubscribe up to a total of $235 million.The Issue Price will be $1.00 per Unit and is payable in twoinstalments. The first instalment, payable on application for thePartly Paid Units, will be for an amount of $0.60 per Unit, with thebalance of $0.40 per Unit payable as a final instalment on 1 June,2001 or in the six months following that date at the discretion ofthe Manager.The directors have no current intention to divest any of the CPHInvestment Corp's holding in John Fairfax Holding Limited ("Fairfax")shares. Unitholders however, will also be asked to approve thepayment of an incentive fee to CPH Management on the close of theIssue, based on existing arrangements attached to the performance ofthe Fairfax shares, as if they were sold at that time.Subject to ASIC and ASX requirements, it is anticipated that theIssue will open in early April. An Explanatory Statement andProspectus, outlining the details of the proposal, will be sent toUnitholders in early April. The Issue is conditional upon UnitholderApproval at a General Meeting to be held in early May. Subject tothis approval, it is expected that the Partly Paid Units will beallotted and trading in late May.
Dear GuysThe underlying Net Value of FXF Corp is the Fairfax Shares themselves. Personally i think Packer's touch as an investor cannot be considered in the likes of George Soros considering the hefty management fees this proposal is planning to charge. Sure they have a good eye for investments but i am sure they ARE the trend, not following the trend.
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