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June 02, 2005
More low value added musings (edit: regarding local market numbers) (pointless update re evil regs)
As I respond to a request for some information, I muse at the funny data I have from the local Bourse.
For example, what chance is there that the essentially bankrupt "We Have Pissed Through 4 billion in State Capital Injections" Bank (WHPT-4-SCI Bank, Piss Bank for short) merits, based on public information a 147 percent rise in its share value in the past five months, for an impressive 28 times earnings valuation?
I would hate to think there are insiders who know that perhaps, well, it's going to get another injection? Oh perish the thought. That could never happen.
Piss Bank, well, it may be a perrenial loser with no less than a third of former management on show trial, but the State is going to keep this shambling zombie alive. And going to give it hard earned (well borrowed) tax payer (if anyone actually paid taxes) dollars (or the near local equivalent).
(I add I categorically deny having any information of my own that would support the same. When I say I categorically deny that information, I mean, well.... perhaps I may have something along those lines, but how would I know if it's worth betting on?)
Another example. The perennial money loser "Suck At Consumer Financing at Least by Our Published Accounts" Ltd. (SACFLOPA). although it consistently makes year in, year out literally no money, local wisdom has is valued at 42.3 times earnings.
Well, is wisdom wrong or are the published numbers comically fabricated?
You be the judge.
However, most impressive is our local maker of self-exploding gas tanks. Although of suspicious quality, the products, and disdainful of even pretending to distribute dividends, the market wisdom values our scrappy little producer of customer anihilating bon-bons a 90 times earnings valuation.
At least they allow that they make money of some sort in their published accounts.
Added thought:
You know, I just don't know what to think about an insurance company in a young market that is paying out 99 percent of net profits (as published). Taking into account regulation here, I have to believe their published numbers approach having some relationship with reality.
(Further thought: I note that the insurance company in question has been at this payout level for a while)
UPDATE II
I learned today that the Pharmacists Union (aka anti-competitive insensitive lying scum) managed to change the new bill on the sector regulation to ban the "evils" of "unbridled" and "disloyal" competition that allowing pharmacies to colocate with private hospitals represent. It is far superior for the health of the nation to force the hospitalized or the newly released to go elsewhere to fill the scripts.
They also managed to insert a clause requiring any new market entrants to secure the double accord of the municipal governor and the local Anti Competitive Insensitive Lying Pharma Scum union.
Galloping ahead we are.
However, it does appear that pharma producers may still be freed of the bizarre regulation forcing them to cede 51 percent of their capital to and only to the licensed pharmacists (of which 27.1 percent must be native born).
Regulation.
Posted by The Lounsbury at June 2, 2005 04:41 PM
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Jan-July 2005
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