Right? This has definitely been the performer in my portfolio as of late. I have to say I'm not 100% sure why. But I'm not complaining.
Printable View
I don't know why punters are selling it last year and NZX was buying it back big time at around $1.4+ a share. Luckily I picked up some for that price and I intend to sit on it and collect the dividend. Good yield and growth stock I think
What do you guys think about this? Immidiate trend seems to be turning. Obviously long term trend still says up but... activity has definitely changed.
CEO sold 2 million shares today. Probably not a good sign. Apparently he sold 2 mil, bought $800k worth (looks like options so who knows at what price?) and used the rest to buy a property.
He has done an outstanding job - of enriching himself whilst stuffing up NZ's capital markets and being a hypocrite when it comes to upholding the highest standards expected from being the market operator and regulator.
Is the FMA investigating this glaring failure to disclose material information to the market before Mr Weldon sold the 2m shares?
Clear founder's 'unpleasant' tactics: NZX
PAUL MCBETH Last updated 12:02 08/07/2011
Stock exchange operator NZX has hit out at Grant Thomas's lawyer, accusing him of "unpleasant" tactics after details of a lawsuit over the Clear grain exchange were leaked to the media.
NZX stock dropped 4 per cent to $2.40 today after BusinessDay and the National Business Review reported that Thomas, who co-founded the Melbourne-based grain exchange before selling to NZX and becoming an employee, may seek as much as $17 million in earn-outs from the soured contract.
A lawsuit from Thomas would come after NZX filed its own action in the High Court this week over its A$6.4 million purchase of the Clear grain exchange in 2009, claiming "breach of warranty and related claims."
That suit named Thomas, grain exchange co-founder Dominic Pym and their companies Ralec Commodities Pty and Ralec Interactive Pty.
NZX said in an unattributed statement that Thomas's lawyer, Rob McGirr, had made "exaggerated and inaccurate" statements and suggestions of $17 million of earn-outs were "irresponsible".
BusinessDay said NZX was ordered to pay Thomas A$259,705 by a Melbourne court six weeks ago that was due under a settlement deal made last year.
"NZX is fully confident it has discharged its obligations appropriately and reasonably, and is not swayed by tactics of this nature - unpleasant though they may be," the company said in a statement.
"The earn-out targets for the Clear business were ambitious, which is why NZX agreed to these being classified as earn-outs, rather than to augment the original purchase price."
"I have nothing to add at this stage as we go through our various internal processes," NZX chairman Andrew Harmos told BusinessDesk in an email.
The media reports cast doubt on the foray into Australian grain. NZX chief executive Mark Weldon is quoted telling the Melbourne court in May that Clear was showing "a substantial economic loss."
BusinessDay said it may need to writedown the value of the asset, eroding first-half profit.
That was despite NZX referring to Clear in its annual report in March as "demonstrating real momentum," the report said.
NZX agreed to pay interests associated with Thomas and his partner Pym A$7 million in earn-outs if the Clear exchange hit certain targets, though these weren't met, Fairfax reported.
NZX said the grain tonnage has been growing season on season, but was "not sufficient to meet the earn-out targets agreed in connection with the Clear transaction."
The grain exchange was set up to take advantage of the break-up of the Australian Wheat Board monopoly, and was looking to capture a slice of the A$100 million to A$150 million growers spent annually on commissions to sell their products.
Grain trading was expected to add another suite to NZX's agricultural products, and came as it was in the process of setting up its dairy futures trading.
At the time of the sale, NZX said the grain exchange had registered more than 1,100 grain growers, 100 brokers and 200 buyers and bulk handlers across Australia are registered, and was set to link with a further 13,000 growers registered with GrainCorp, that country's largest grain bulk handler.
Did he give any indication of what direction that real momentum was? You were just assuming it was up. :)
Continuous dislosure is a hard call but he definately should have sold while that wasn't disclosed.
Anyone here going to put in a complaint? (I am not a holder)
Up of course. Have you ever seen Mark Weldon allowing himself to be tainted with anything negative?
Why do you think NZX has such high turnover of staff? CFOs especially?
What is very disturbing is that the law suit was filed in May - so NZX and Mark Weldon were fully aware in Jnne when Weldon sold his shares that :
1. Grain was not doing well and NZX was taking a law suit against the ex-directors.
2. No attempt was made to correct the 'real momentum ..." comment from the Annual Report.
3. It took the Australians to disclose the information to the public before NZX even remotely thought of informing the market.
4. This statement speaks volume about the butt-covering that is already going on in NZX : ""I have nothing to add at this stage as we go through our various internal processes," NZX chairman Andrew Harmos told BusinessDesk in an email.
Ok, FMA - over to you to show you do believe in market integrity and proper disclosures of material information.
Balance, I'm reminded of the fact that Weldon refused to stand beside Brian Henry for a photoshoot at the DIL IPO launch.....Quote:
Have you ever seen Mark Weldon allowing himself to be tainted with anything negative?
More like it.
According to NBR, NZX being investigated for breach of disclosure.
NZX obviously felt that it is a law unto itself.
FMA confirms NZX inquiry
TIM HUNTER Last updated 09:43 15/07/2011
The Financial Markets Authority has confirmed an inquiry into stock exchange operator NZX, after BusinessDay revealed comments by NZX chief executive Mark Weldon apparently at odds with market disclosures.
Last Friday BusinessDay reported details of a lawsuit and employment dispute involving NZX subsidiary the Clear grain exchange, acquired by NZX in 2009.
The lawsuit related to alleged deceptive conduct by the vendors of Clear - interests associated with former St Kilda football coach Grant Thomas and software specialist Dominic Pym.
Both were retained as employees by NZX after the deal, but an employment dispute led to the departure of Thomas last year.
In a Melbourne court hearing in May this year Weldon gave evidence that Clear was showing "a substantial economic loss".
"We've got another audit committee meeting coming up in June where we will look at what the actual numbers are against the purchase price - the business is not performing well," he said.
Published statements by NZX about Clear's performance were more positive. In its annual report published in March, NZX said Clear was "demonstrating real momentum, with trading currently tracking at four times the levels reached in the previous harvest.''
The FMA said it was aware NZX was undertaking an inquiry into matters relating to its subsidiary Clear grain exchange.
''We have asked some questions of NZX and we are following their inquiry with interest. We expect to hear their conclusions late this week or early next.''
As a stock exchange issuer, NZX is subject to its own listing rules, enforced by the special division of the NZX Markets Disciplinary Tribunal.
The FMA has a statutory responsibility to oversee the compliance of listed issuers, including NZX itself, with their continuous disclosure obligations.
FMA is off to a good start then - tasty case to sink a new set of teeth into
http://www.nzherald.co.nz/business/n...ectid=10738763
Contrast the two statements :
"Continuing the commodities exposure available through NZX, the Clear Grain Exchange in Australia is demonstrating real momentum, with trading currently trading at four times the levels reached in the previous harvest." March 2011
"We've got another audit committee meeting coming up in June where we will look at what the actual numbers are as against the purchase price - the business is not performing well," he said.
"There is a substantial economic loss, there is a substantial cash flow loss in Australia." May 2011
And as per usual, Mr Weldon is nowhere to be seen or heard as this is not good for his image. The spin machine has gone into overdrive :
NZX chairman Andrew Harmos said it was not right to say the NZX was under investigation.
"It is not a big, sensational matter at all. It is normal routine inquiry ... and they are awaiting the outcome of our review which we will announce as soon as it is completed."
Accounting firm KPMG had been called in to compile a report for the NZX's audit committee, Harmos said.
Very careful use of words. Not a big sensational thing according to the spin machine. Why then bring in KPMG to compile a report? Will the audit committee answer the question why NZX, Mr Weldon and Mr Harmos saw fit not to advise the market that the Clear grain business is not doing well. Especially when Mr Weldon sold 2m shares after an upbeat AGM and brokers' presentations.
"Cowboys belong in the movies" says the FMA
Good to see they are going after a high profile cowboy .... doubt whether it will come too much though
Not a good look though - but then we ordinary folk just don't get it - its just a ruse for the rich to screw the ordinary folk .... and they are doing a good job
For one 'setting the standards' interesting to see that NZX don't put much emphasis on reporting their NPAT - all they concentrate on is what they call EBITDAF .... goodness gracious
Never really studied NZX as a company but I thought with a market cap of nearly $300m they must be making heaps and was surprised to see they only made $10m (real profit after the ITDAF bits) last year
just a rave .... doesn't matter cause they will continue on their merry way and be cowboys ... and setting the standards ... we should be proud of them