Actually the Bahamian people are subsidizing foreign gated communities because
1. VAT is a regressive tax hurting the poor black people who buy more per capita
2. No income tax so all the stock market capital gains of foreigners are not taxed. In their developed home countries they are taxed at a rate of 20 to 30%
3. BEC, Water and Sewerage, Bahamas Air and everything else is utilized more per capita by the foreigners with their over-sized and homes, yachts and private jets than Bahamians. All of these government institutions are run at massive losses in Bahamian dollars and the government debt is owed by the Bahamian people. While the foreigner keep their money safely in US dollars out of the country.
I could go on and on but whats the use. Our dumb politicians have no idea how to fairly spread the cost of their incompetent government between foreigners and Bahamians.
I would like to add that Cable Bahamas lost -$16.6 million last year and has long term debt of $474 million (that almost half a billion dollars). At the same time Cable's cash balances have dropped rapidly from $63 million to $34 million at the end of last year (information source: Cable Bahamas web site, https://www.cablebahamas.com/media/file…).
With such a rapid drop in cash balances I wouldn't be surprised if they have no cash left as they move into the Q1 2017 taking into account the capital intensive roll out of cell towers. We shall see soon enough.
The capital raise is targeted at institutional investors such as pension funds, mutual funds and high net worth private clients.
John, I think your comparison to BoB is useful but while Cable Bahamas has been mismanaged through aggressive expansion into highly competitive commoditized markets (Netflex, internet, cable, wireless etc) the problems of BoB point more towards financial irregularities which appear to have been covered up because no forensic audit has been performed at BoB.
Personally I wouldn't put a penny into this capital raise. Like BoB I believe they will be forced to stop preference share dividends due to cash flow issues. Share dividends have already been cancelled.
The other problem is the opaque and byzantine relationship with the government owning majority shares in the cell license but not parent, so how does that work? Essentially it appears to be a company within a company, so who will issue the new debt? Who's financials will they show in the prospectus? If debt is issued will the government retain 51% of the voting rights of the cell license? Why would you buy debt and leave government in control? Why is the government involved in this in the first place? With 4 credit downgrades in the last 4 years and massive amounts of money needed to fix the dump and hurricane repairs doesn't the government have anything better to do other than meddling in the affairs of a private company?
愛國 is literally "love for one's country", like how children (should) love their mother. In fact, China is referred to as 祖國 (mother country, aka motherland) by Chinese all over the world. You can choose friends, but you cannot choose family. To accept one's cultural identity is to have an unconditional love for your family, especially your mother. Even if you think she is imperfect and not worthy of admiration, she is at least worthy of respect and adoration, especially in public.
1. Permanent deficit spending 2. Increasing deficits 3. Larger and larger total debt 4. Zero growth 5. High crime 6. Intolerance 7. Poorly educated students 8. Politician just concerned with creating a show
...da company ain even mak'in no cash. it done pay out $3.5 million last quarter ta dem preference shares peoples dem. better be careful, da bank own by we stop payin da preference dem when dey run out a cash
observer2 says...
Actually the Bahamian people are subsidizing foreign gated communities because
1. VAT is a regressive tax hurting the poor black people who buy more per capita
2. No income tax so all the stock market capital gains of foreigners are not taxed. In their developed home countries they are taxed at a rate of 20 to 30%
3. BEC, Water and Sewerage, Bahamas Air and everything else is utilized more per capita by the foreigners with their over-sized and homes, yachts and private jets than Bahamians. All of these government institutions are run at massive losses in Bahamian dollars and the government debt is owed by the Bahamian people. While the foreigner keep their money safely in US dollars out of the country.
I could go on and on but whats the use. Our dumb politicians have no idea how to fairly spread the cost of their incompetent government between foreigners and Bahamians.
On ‘Dock tax’ crackdown on gated communities
Posted 4 April 2017, 6:15 p.m. Suggest removal
observer2 says...
RBC also reducing hours in Long Island to 3 days per week.
We are being forced to bank at the Webshops which are always open and have branches in every settlement.
On Banks in the Bahamas
Posted 21 March 2017, 8:40 a.m. Suggest removal
observer2 says...
John, excellent analysis.
I would like to add that Cable Bahamas lost -$16.6 million last year and has long term debt of $474 million (that almost half a billion dollars). At the same time Cable's cash balances have dropped rapidly from $63 million to $34 million at the end of last year (information source: Cable Bahamas web site, https://www.cablebahamas.com/media/file…).
With such a rapid drop in cash balances I wouldn't be surprised if they have no cash left as they move into the Q1 2017 taking into account the capital intensive roll out of cell towers. We shall see soon enough.
The capital raise is targeted at institutional investors such as pension funds, mutual funds and high net worth private clients.
John, I think your comparison to BoB is useful but while Cable Bahamas has been mismanaged through aggressive expansion into highly competitive commoditized markets (Netflex, internet, cable, wireless etc) the problems of BoB point more towards financial irregularities which appear to have been covered up because no forensic audit has been performed at BoB.
Personally I wouldn't put a penny into this capital raise. Like BoB I believe they will be forced to stop preference share dividends due to cash flow issues. Share dividends have already been cancelled.
The other problem is the opaque and byzantine relationship with the government owning majority shares in the cell license but not parent, so how does that work? Essentially it appears to be a company within a company, so who will issue the new debt? Who's financials will they show in the prospectus? If debt is issued will the government retain 51% of the voting rights of the cell license? Why would you buy debt and leave government in control? Why is the government involved in this in the first place? With 4 credit downgrades in the last 4 years and massive amounts of money needed to fix the dump and hurricane repairs doesn't the government have anything better to do other than meddling in the affairs of a private company?
I don't think this will end well.
http://tribune242.com/users/photos/2017…
On $50m capital raising comes Aliv next week
Posted 19 March 2017, 1:11 p.m. Suggest removal
observer2 says...
We have so many plagues wrecking havoc with us. Toxic dump smoke, Bunker C oil water pollution at Clifton, crime, webshops and corruption.
On Ten-year limit on web shops
Posted 10 March 2017, 1:09 p.m. Suggest removal
observer2 says...
This is excellent news to those who have been impacted by the fire.
Christie needs to put a motion forward in the House of Assembly for the government to borrow $100 million to help these poor people.
On Financial aid is considered for residents hit by blaze
Posted 8 March 2017, 7:11 a.m. Suggest removal
observer2 says...
We as Bahamians need to be more patriotic and appreciative our new Chinese investors and appreciative the PLP that has saved Baha Mar from ruin.
Please stop criticizing the PLP.
https://www.quora.com/Why-are-the-Chine…
愛國 is literally "love for one's country", like how children (should) love their mother. In fact, China is referred to as 祖國 (mother country, aka motherland) by Chinese all over the world. You can choose friends, but you cannot choose family. To accept one's cultural identity is to have an unconditional love for your family, especially your mother. Even if you think she is imperfect and not worthy of admiration, she is at least worthy of respect and adoration, especially in public.
On Govt: Sarkis misleading public over Baha Mar
Posted 8 March 2017, 7:02 a.m. Suggest removal
observer2 says...
Devaluation will cut the cost of labour in US$/tourism terms. Thus making our labour intensive tourist product more competitive.
On ‘Decisive measures’ call as deficit soars to $314m
Posted 28 February 2017, 12:30 p.m. Suggest removal
observer2 says...
1. Permanent deficit spending
2. Increasing deficits
3. Larger and larger total debt
4. Zero growth
5. High crime
6. Intolerance
7. Poorly educated students
8. Politician just concerned with creating a show
=
devalution at some point in the future
On ‘Decisive measures’ call as deficit soars to $314m
Posted 28 February 2017, 11:01 a.m. Suggest removal
observer2 says...
The next Bank of the Bahamas.
Sell your stock or preference shares if you can find a buyer.
On Cable losses hit $16.7m amid wait for growth pay-off
Posted 28 February 2017, 6:49 a.m. Suggest removal
observer2 says...
...da company ain even mak'in no cash. it done pay out $3.5 million last quarter ta dem preference shares peoples dem. better be careful, da bank own by we stop payin da preference dem when dey run out a cash
http://tribune242.com/users/photos/2017…
On Aliv works with majority owner so ‘no cannibalising’
Posted 8 February 2017, 2:11 p.m. Suggest removal