The Tribune has done some very good reporting on the Cable/Aliv financials and should be commended.
I was concerned during the recent preference share issuance that the most up to date quarterly Cable/Alive financial reports were not issued and investors relied up the losses disclosed in financial statements that were 6 months old.
In deed I can't find the current statements on the Cable or Bisx websites yet so I will only comment on what the Tribune is reporting above.
The losses confirm my recent blogs where I queried the ability of Cable/Aliv to become profitable due to the massive levels of debt and vendor financing it is carrying on its balance sheet.
$84 million/accounts payable/accrued liabilities + $154 million bank financing + $232 million in preference shares = $470 million + ?/Vendor financing. That's almost half a billion dollars right there. The debt of the Bahamas government is only $8 billion. Is the Bahamian population so large that it needs all these cell phones and cable connections? Anyone happy with outdated Cable TV product? Hands up all of you who cut Cable and are using over the top Netflix or Rocu?
3 comments:
1. The use of 8% preference shares to raise capital in my humble opinion is inappropriate as most start up companies do not pay dividends or interest as they need to reinvest capital to fund growth. The preference share capital raising should have been equity with no dividend or interest payments.
2. The above financial results should have been disclosed during the recent capital raising exercise.
3. Management's trajectory forecast to profitability should be carefully reviewed by investors.
The investment, as appropriately disclosed, is targeted to sophisticated investors and high net worth individuals. So why is there so much press coverage? Who is reading this stuff.
by da time dis bridge finish it ga cost $100 million and da PLP ga be back in power...watch dis. Oban II here we come.
Let me guess, foreign loans from da World Bank, foreign workers/contractors from south america, inferior third world engineering, Bahamian lawyers, loads of politicians and zero transparency or accountability. Remember JFK drive dual carriage way? It started off at $20 million, 15 years later when it finish it was $100 million.
Can anymore guess who the unnamed financial backers of Oban are?
Anyone know why the government would sign a heads of agreement with no idea where the $5 billion is coming from?
Anyone know who has $5 billion to lavish on a last certury high carbon polluting global warming environmentally unfriendly industry and build it in a basically third world country with little transparency and load of corruption everywhere?
The rise of asues, block chain schemes, crypto-currencies, web shops, pyramid schemes, and capital mis allocations in the Bahamian dollar/economy is a direct result of exchange control regulations, which deters Bahamians from investing in the global capital markets and forces Bahamians to invest the massive amounts of liquidity trapped in the local economy into more and more exotic, non regulated schemes...some of which are inappropriate for small investors and other are out right frauds.
To poor gas on the fire, our mis-placed fixation with foreign investment as some sort of economic savior is forcing the government to deal time and time again with non blue chip investors. Remember the PLP's 10 anchor projects....one for each island? They all failed.
The massive amount of liquidity is why the government can pour hundreds of millions of dollars into the rescue of the BoB without any disruption to the financial system. Anyone seen any financials from Resolve? Anyone know where all the money gone?
Bahamian's are desperate for places to invest their funds where they can get a decent risk adjusted return and some diversification outside of a hand full of Bahamian stocks, preference shares, low yielding bank deposits and government bonds. At the end of the day our exploding deficits and national debt will force a devaluation. You can't sell a product at the wrong price forever.
Also, one day crypto currencies will fail because the supply of the tokens can only expand by solving ever more complex mathematical equations which use massive amount of electrical energy to solve. The regulators will be forced to shut them down as it will be an environmental hazard and a poor use of energy with no value to society. This is on top of the fact that these investment are completely unregulated, no audits, no financial statements, no bank accounts....no nothing. But it seems like we are supportive of crypto currencies. So as with the Dutch Tulip mania/bubble of the 17th Century....let the games begin.
Successive governments have gotten this wrong time and time again. Let be clear, there is nothing wrong with foreign investment however that is only one component of a comprehensive economic growth plan. Ever wonder why our economy with the billions of incoming foreign investment can only grow by over 1.5% a year? Remember the PLP 10 anchor projects? One for each island...they all failed. Why?
Zhivargo here are some other items you need for a balanced development strategy (1) removal of exchange controls so Bahamians can invest outside the Bahamas (2) float the Bahamian dollar so we stop deluding ourselves that our money is worth the same as the US dollar (3) educate our children so they can read and write (4) sell off the utilities (light, water, cable, BTC, post office) so we can have a sensible infrastructure (in most developed countries utility companies were privatized a half century ago! (5) cut out the inefficient government and make it more efficient so people don't get the run around when they want to invest (5) please put an international airport in the southern islands (6) develop the family islands and stop the over crowding of government (7) local government.
Until we stop looking at foreigners as some sort of messiah we will never develop our country to its true potential.
Its just amazing the ability of the Bahamian government to take a simple matter and obfuscate it with loads of drama and nonsense. A registered nurse in the Bahamas makes between $12,000 and $24,000 per annum and a nurse in the US makes between $67,930 and $122,990. As Baby Boomers in America are moving into old age and the demand for nurses far outstrips the supply. Therefore a registered nurse in the Bahamas can quadruple their salary by being recruited and working in the US.
You have put together an excellent analysis of the risks involved with Aliv
I’m not a technician but from a high financial view point I would add the following issues.
1. Use of preference shares is inappropriate for a risky start up. As the company is bleeding red ink the pref dividend is being paid from funds put in by earlier ... the classic definition of a p***** s*****. This should be an equity issuance as a start up can’t pay dividends until it is profitable. right?
2. The Aliv financials are 6 months old. There is no disclosure of the unaudited results through December 2017. What terrible news will not be disclosed because this is not an equity issue and there is no requirement for quarterly reports. By the time the annual audit is done the pref dividend may have to be stopped.
3. Aliv is pushing that the issuance is for institutions and high net worth individuals whom they define as having $1 million in net worth. This is wrong, it should be $1 million in liquid assets.
4. The Board Of Directors and Management are nice people but there are no engineers or technicians. The parent, Cable, is spread thin, and they are outside of thier league with thier Florida opps.
5. What’s with the “free ride” 51.75% ownership by the Bahamas Government. Ahhh, finally a deep pocket ready for the coming bailout. Resolve will need much more than the recent $100 million just injected. Hey Bahamas? Anyone seen the resolve financials? Doesn’t look like KP brought anymore transparency than the previous characters.
I fear this will all end badly and swept under the rug like BoB, Bahamas Supermarkets, Baha Mar, Clico and Gulf Union. The government is to busy bringing on Oban.
OMG, nothing against foreign investment. Foreign investment is vital to our growth. Its just that our governments have bestowed almost messianic powers to many of these carpet beggar investors to save our country. As a Bahamian we would never be given the time of day if we walked in with a $5 billion pie in the sky project. Yes Freeport is in terrible condition but why give the poeple false hope, like they did with the legalization of gambling...on the amount of jobs and taxes that will be collected. It would solve all our problems.
observer2 says...
The Tribune has done some very good reporting on the Cable/Aliv financials and should be commended.
I was concerned during the recent preference share issuance that the most up to date quarterly Cable/Alive financial reports were not issued and investors relied up the losses disclosed in financial statements that were 6 months old.
In deed I can't find the current statements on the Cable or Bisx websites yet so I will only comment on what the Tribune is reporting above.
The losses confirm my recent blogs where I queried the ability of Cable/Aliv to become profitable due to the massive levels of debt and vendor financing it is carrying on its balance sheet.
$84 million/accounts payable/accrued liabilities + $154 million bank financing + $232 million in preference shares = $470 million + ?/Vendor financing. That's almost half a billion dollars right there. The debt of the Bahamas government is only $8 billion. Is the Bahamian population so large that it needs all these cell phones and cable connections? Anyone happy with outdated Cable TV product? Hands up all of you who cut Cable and are using over the top Netflix or Rocu?
3 comments:
1. The use of 8% preference shares to raise capital in my humble opinion is inappropriate as most start up companies do not pay dividends or interest as they need to reinvest capital to fund growth. The preference share capital raising should have been equity with no dividend or interest payments.
2. The above financial results should have been disclosed during the recent capital raising exercise.
3. Management's trajectory forecast to profitability should be carefully reviewed by investors.
The investment, as appropriately disclosed, is targeted to sophisticated investors and high net worth individuals. So why is there so much press coverage? Who is reading this stuff.
On Cable ‘turning corner on plan’ despite $31m loss
Posted 8 March 2018, 10:59 a.m. Suggest removal
observer2 says...
by da time dis bridge finish it ga cost $100 million and da PLP ga be back in power...watch dis. Oban II here we come.
Let me guess, foreign loans from da World Bank, foreign workers/contractors from south america, inferior third world engineering, Bahamian lawyers, loads of politicians and zero transparency or accountability. Remember JFK drive dual carriage way? It started off at $20 million, 15 years later when it finish it was $100 million.
Ain nuttin change. We get swing again.
On $30m bridge considered to replace glass window
Posted 7 March 2018, 5:46 p.m. Suggest removal
observer2 says...
Can anymore guess who the unnamed financial backers of Oban are?
Anyone know why the government would sign a heads of agreement with no idea where the $5 billion is coming from?
Anyone know who has $5 billion to lavish on a last certury high carbon polluting global warming environmentally unfriendly industry and build it in a basically third world country with little transparency and load of corruption everywhere?
Can anyone guess?
On CCA demands arbitration for Sarkis's claim
Posted 4 March 2018, 3:56 p.m. Suggest removal
observer2 says...
Lmao Ohdrap4!
Keep me updated on the issuance of the grand Bahama oil shares. I hear billions comin.
On App links Asue with blockchain
Posted 2 March 2018, 8:54 p.m. Suggest removal
observer2 says...
The rise of asues, block chain schemes, crypto-currencies, web shops, pyramid schemes, and capital mis allocations in the Bahamian dollar/economy is a direct result of exchange control regulations, which deters Bahamians from investing in the global capital markets and forces Bahamians to invest the massive amounts of liquidity trapped in the local economy into more and more exotic, non regulated schemes...some of which are inappropriate for small investors and other are out right frauds.
To poor gas on the fire, our mis-placed fixation with foreign investment as some sort of economic savior is forcing the government to deal time and time again with non blue chip investors. Remember the PLP's 10 anchor projects....one for each island? They all failed.
The massive amount of liquidity is why the government can pour hundreds of millions of dollars into the rescue of the BoB without any disruption to the financial system. Anyone seen any financials from Resolve? Anyone know where all the money gone?
Bahamian's are desperate for places to invest their funds where they can get a decent risk adjusted return and some diversification outside of a hand full of Bahamian stocks, preference shares, low yielding bank deposits and government bonds. At the end of the day our exploding deficits and national debt will force a devaluation. You can't sell a product at the wrong price forever.
Also, one day crypto currencies will fail because the supply of the tokens can only expand by solving ever more complex mathematical equations which use massive amount of electrical energy to solve. The regulators will be forced to shut them down as it will be an environmental hazard and a poor use of energy with no value to society. This is on top of the fact that these investment are completely unregulated, no audits, no financial statements, no bank accounts....no nothing. But it seems like we are supportive of crypto currencies. So as with the Dutch Tulip mania/bubble of the 17th Century....let the games begin.
https://www.nytimes.com/2018/02/28/busi…
On App links Asue with blockchain
Posted 2 March 2018, 5:29 p.m. Suggest removal
observer2 says...
Agreed with you 100% John.
Successive governments have gotten this wrong time and time again. Let be clear, there is nothing wrong with foreign investment however that is only one component of a comprehensive economic growth plan. Ever wonder why our economy with the billions of incoming foreign investment can only grow by over 1.5% a year? Remember the PLP 10 anchor projects? One for each island...they all failed. Why?
Zhivargo here are some other items you need for a balanced development strategy (1) removal of exchange controls so Bahamians can invest outside the Bahamas (2) float the Bahamian dollar so we stop deluding ourselves that our money is worth the same as the US dollar (3) educate our children so they can read and write (4) sell off the utilities (light, water, cable, BTC, post office) so we can have a sensible infrastructure (in most developed countries utility companies were privatized a half century ago! (5) cut out the inefficient government and make it more efficient so people don't get the run around when they want to invest (5) please put an international airport in the southern islands (6) develop the family islands and stop the over crowding of government (7) local government.
Until we stop looking at foreigners as some sort of messiah we will never develop our country to its true potential.
On Ex-minister: Foreign investment 'as often as we can get it'
Posted 28 February 2018, 5:28 p.m. Suggest removal
observer2 says...
Its just amazing the ability of the Bahamian government to take a simple matter and obfuscate it with loads of drama and nonsense. A registered nurse in the Bahamas makes between $12,000 and $24,000 per annum and a nurse in the US makes between $67,930 and $122,990. As Baby Boomers in America are moving into old age and the demand for nurses far outstrips the supply. Therefore a registered nurse in the Bahamas can quadruple their salary by being recruited and working in the US.
What would you do? Stay and work at PMH or move?
Salary sourses:
https://www.bahamas.gov.bs/wps/portal/p…
https://nursesalaryguide.net/registered…
On Bid to recruit nurses as Bahamians head to US
Posted 28 February 2018, 11:26 a.m. Suggest removal
observer2 says...
Dear “A concerned investor”
You have put together an excellent analysis of the risks involved with Aliv
I’m not a technician but from a high financial view point I would add the following issues.
1. Use of preference shares is inappropriate for a risky start up. As the company is bleeding red ink the pref dividend is being paid from funds put in by earlier ... the classic definition of a p***** s*****. This should be an equity issuance as a start up can’t pay dividends until it is profitable. right?
2. The Aliv financials are 6 months old. There is no disclosure of the unaudited results through December 2017. What terrible news will not be disclosed because this is not an equity issue and there is no requirement for quarterly reports. By the time the annual audit is done the pref dividend may have to be stopped.
3. Aliv is pushing that the issuance is for institutions and high net worth individuals whom they define as having $1 million in net worth. This is wrong, it should be $1 million in liquid assets.
4. The Board Of Directors and Management are nice people but there are no engineers or technicians. The parent, Cable, is spread thin, and they are outside of thier league with thier Florida opps.
5. What’s with the “free ride” 51.75% ownership by the Bahamas Government. Ahhh, finally a deep pocket ready for the coming bailout. Resolve will need much more than the recent $100 million just injected. Hey Bahamas? Anyone seen the resolve financials? Doesn’t look like KP brought anymore transparency than the previous characters.
I fear this will all end badly and swept under the rug like BoB, Bahamas Supermarkets, Baha Mar, Clico and Gulf Union. The government is to busy bringing on Oban.
Good luck to all.
On Concern for Aliv's funding
Posted 23 February 2018, 7:07 p.m. Suggest removal
observer2 says...
was he a used car saleman? dat's da worsest.
On Oban boss’ $650k debt to US taxman
Posted 23 February 2018, 12:41 p.m. Suggest removal
observer2 says...
OMG, nothing against foreign investment. Foreign investment is vital to our growth. Its just that our governments have bestowed almost messianic powers to many of these carpet beggar investors to save our country. As a Bahamian we would never be given the time of day if we walked in with a $5 billion pie in the sky project. Yes Freeport is in terrible condition but why give the poeple false hope, like they did with the legalization of gambling...on the amount of jobs and taxes that will be collected. It would solve all our problems.
I did say that "some have be very successful".
On UPDATED: Full disclosure – Inside story on the men behind $5bn refinery deal
Posted 21 February 2018, 5:27 p.m. Suggest removal