"Banker" it's amazing that very few bloggers are following this storey. The current Cable Bahamas loss is not a flash in the pan and is consistent with an earlier material trend/decline in profits earlier this year. This was explained by "DonAnthony" is his blog attached to the following link.
Cable is a widely held Bahamian stock and preference share issue yet none of the media, financial advisors, pension funds, directors or brokers are pushing Cable to put a halt to their expansion folly.
In an earlier blog I also put forward arguments as to why I think the US acquisitions or the cell phone license expansion in the Bahamas will fail. See "Observer2" blog on the attached link.
Once the billion is borrowed and most of it has gone to the foreign management company the entire electrical company will collapse (owing hundreds of millions to Bahamian businesses) ...but it will collapse in slow motion over about 3 governments (PLP 2012, FNM 2017 and then PLP 2022). BEC will collapse in 2023 under the PLP...by that time Obie will be responsible.
Hopefully this loan will cover up some of the $100 million that was wasted and we can finally get national health insurance for all Bahamians and not just those that can afford outrageously priced private health insurance. They said that once NHI is implemented there will be no need for private health insurance. I can't wait for the savings. It would be good if the foreigners who are doing the consulting can come and run it for us. We really need these foreigners as we aren't sure what we are doing. Take for example BTC which was owned by Bahamians. Now that we sold it to foreigners it is so much better run.
National Health will complete the government control of the entire economy for the betterment of our people. Government will now control healthcare, schools, communications, electricity, low cost housing, banks, roads, airlines and airports.
Its is important to remain PLP so you can get some of the gravy. The FNMs need to wait their turn and not be so vex.
Economist. We need and we will devalue our currency in order to be competitive. All industrialized countries have devalued their currency to compensate for the strength of the US economy compared to theirs. Look at the Euro (since January it has been devalued from $1.20 to $1.06 or 16%) and look at the Canadian dollar (since January it has been devalued from $0.86 to $0.64 or 14%). These are just two examples. You should also look at Brazil, China, Russia, Norway and South Africa as well. Every developed country has devalued except the Bahamas.
With our growing debt, high unemployment, lack of foreign investment, crime, low education level etc. etc. a devaluation will be a big boost to our economy. I argue that we need to devalue our currency from $1.00 too $0.80 or 20%. The devaluation needs to be sudden and without warning just like they did in China so that people don't become afraid and try to take their money out of the banks, Bahamian stocks and bonds.
Once the devaluation is done labour will become cheaper. The increased minimum wage, national insurance rates, business license fees and VAT is making labour too expensive for foreign businesses. Foreigners will make more money in their hotels and the expanded economy will trickle down to the poor.
Take a look at pages 52 and 53 of the PLP Manifesto for 2012 (below). Their visionary identification of our current financial problems and the steps they are taking to correct the issues are spot on. With VAT, recapitalization of BoB, Bamsi etc. we are on the correct course. Steady as she goes.
Sheeprunner12, have you talked with the number boys? I would have thought they had money to lend. Besides what do you need a loan for? Don't you have a government job, a low income house through BoB where you don't have to pay the mortgage, a third hand broke down car imported on the island and don't your children go to a fully paid government school (Baha Mar will open to give all of our kids jobs very soon according to Christie) and free national health care will be here shortly so we will not have to pay for medical insurance. If I were you I wouldn't get a loan from these foreigners.
6. Many people like myself will stay with BTC and not get quadruple play. When cable goes off I don't get TV, internet and phone service. But if I go to Cable cell phone service will be cuts as well. OMG, how will I exist?
Cable Bahamas is a great Bahamian success story but shareholders need to watch the company and hold the directors accountable so they don't lose money like in BoB and City Meat by squandering shareholder funds with pie in the sky investments and partnerships. There is no need for them to expand into the US market or partner with the government. You don't great Bahamian companies like Commonwealth Bank doing this nonsense.
Note 1. Achilles, a invulnerable mythical hero who led the Greeks to victory in the Trojan wars but was killed by a small arrow to his heel. An Achilles heel is a weakness in spite of overall strength, which can actually or potentially lead to downfall.
I think Cable's partnership with the Government will be their Achilles Heel (see Note 1 below on Achilles) for the following reasons:
1. The government will own 51% of the cell company. Does anyone know of any public/private partnership that has made a profit? Bob, btc, bec (scheduled for failure), Bamsi, Freeport, Baha Mar, CoB, Water and Sewerage and remember the 10 anchor projects of the first PLP government - all have failed. What makes Cable believe it can buck the trend. The only one that works is the Port which has a 20 year monopoly on importing goods to the Bahamas and is ripping off Bahamians with high shipping costs.
The finalization of Cable government partnership will take much longer than anticipated. This is not unusual. It will increase the interest payable bleed. There is also the potential that the deal will fail as Christie takes forever to make a decision.
2. The Finance VP is blaming the Preference share issue for the loss but that doesn't explain why operating profit (before dividends and interest) were cut in half falling from $5.6m to $2.9m. Why? Larger than anticipated US capital expenditures in a no growth/highly competitive US market? What makes Cable believe that it is invincible and can compete against cable giants like Time Warner, Comcast, Verizon and AT&T on their home turf?
3. Cable will need to finance the entire cell service build out while only pocketing 49% of the profits. Where will the government get financing from for its 51% of the infrastructure build out? The Bahamas is already $6.4 billion in debt and, lol, BTC's towers are so small they can't even accommodate Cable's transmitters.
4. Long term debt and preference share issuance has increased 25% to a crushing 1/3 of a billion dollars. How is this sustainable?
5. Like the telephone, cell phone service is next in line for technological disruption. Google and Facebook are giving away wireless data service in parts of India and Africa as the data collection is more valuable than cell phone service. We have seen the losses What'sApp phone service (owned by Facebook) has caused to BTC. Once What'sApp fully disconnects from its tether to a cell phone number it will make cell phones obsolete. What'sApp now has 900 million active users which makes it the largest phone company in the globe connecting 1 in 7 people on earth. Give it 5 years.
6. Many people like myself will stay with BTC and not get quadruple play. When cable goes off I don't get TV, internet and phone service. But if I go to Cable cell phone service I will be cut off from the world. OMG, how will I exist?
observer2 says...
"Banker" it's amazing that very few bloggers are following this storey. The current Cable Bahamas loss is not a flash in the pan and is consistent with an earlier material trend/decline in profits earlier this year. This was explained by "DonAnthony" is his blog attached to the following link.
http://www.tribune242.com/news/2015/may…
Cable is a widely held Bahamian stock and preference share issue yet none of the media, financial advisors, pension funds, directors or brokers are pushing Cable to put a halt to their expansion folly.
In an earlier blog I also put forward arguments as to why I think the US acquisitions or the cell phone license expansion in the Bahamas will fail. See "Observer2" blog on the attached link.
http://www.tribune242.com/news/2015/nov…
On Cable: 3-5 years to ‘turn corner’ on Florida move
Posted 26 November 2015, 7:25 a.m. Suggest removal
observer2 says...
“It’s not beyond our expectations that we’ll see these kinds of results [the $587,000 loss] right now,” he added.
Interpretation: We are going to see more losses.
On Cable: 3-5 years to ‘turn corner’ on Florida move
Posted 25 November 2015, 2:43 p.m. Suggest removal
observer2 says...
Sounds like Baha Mar #2!
Once the billion is borrowed and most of it has gone to the foreign management company the entire electrical company will collapse (owing hundreds of millions to Bahamian businesses) ...but it will collapse in slow motion over about 3 governments (PLP 2012, FNM 2017 and then PLP 2022). BEC will collapse in 2023 under the PLP...by that time Obie will be responsible.
On Over $1bn needed for BEC reforms
Posted 24 November 2015, 5:01 p.m. Suggest removal
observer2 says...
Hopefully this loan will cover up some of the $100 million that was wasted and we can finally get national health insurance for all Bahamians and not just those that can afford outrageously priced private health insurance. They said that once NHI is implemented there will be no need for private health insurance. I can't wait for the savings. It would be good if the foreigners who are doing the consulting can come and run it for us. We really need these foreigners as we aren't sure what we are doing. Take for example BTC which was owned by Bahamians. Now that we sold it to foreigners it is so much better run.
National Health will complete the government control of the entire economy for the betterment of our people. Government will now control healthcare, schools, communications, electricity, low cost housing, banks, roads, airlines and airports.
Its is important to remain PLP so you can get some of the gravy. The FNMs need to wait their turn and not be so vex.
On PHA readies for $25m bond issue
Posted 23 November 2015, 4:38 p.m. Suggest removal
observer2 says...
http://tribune242.com/users/photos/2015…
PLP Vision 2030 - Pages 52 and 53
On Fourth consecutive credit contraction for Bahamas
Posted 22 November 2015, 7:52 a.m. Suggest removal
observer2 says...
Economist. We need and we will devalue our currency in order to be competitive. All industrialized countries have devalued their currency to compensate for the strength of the US economy compared to theirs. Look at the Euro (since January it has been devalued from $1.20 to $1.06 or 16%) and look at the Canadian dollar (since January it has been devalued from $0.86 to $0.64 or 14%). These are just two examples. You should also look at Brazil, China, Russia, Norway and South Africa as well. Every developed country has devalued except the Bahamas.
With our growing debt, high unemployment, lack of foreign investment, crime, low education level etc. etc. a devaluation will be a big boost to our economy. I argue that we need to devalue our currency from $1.00 too $0.80 or 20%. The devaluation needs to be sudden and without warning just like they did in China so that people don't become afraid and try to take their money out of the banks, Bahamian stocks and bonds.
Once the devaluation is done labour will become cheaper. The increased minimum wage, national insurance rates, business license fees and VAT is making labour too expensive for foreign businesses. Foreigners will make more money in their hotels and the expanded economy will trickle down to the poor.
Take a look at pages 52 and 53 of the PLP Manifesto for 2012 (below). Their visionary identification of our current financial problems and the steps they are taking to correct the issues are spot on. With VAT, recapitalization of BoB, Bamsi etc. we are on the correct course. Steady as she goes.
On Fourth consecutive credit contraction for Bahamas
Posted 22 November 2015, 7:35 a.m. Suggest removal
observer2 says...
Sheeprunner12, have you talked with the number boys? I would have thought they had money to lend. Besides what do you need a loan for? Don't you have a government job, a low income house through BoB where you don't have to pay the mortgage, a third hand broke down car imported on the island and don't your children go to a fully paid government school (Baha Mar will open to give all of our kids jobs very soon according to Christie) and free national health care will be here shortly so we will not have to pay for medical insurance. If I were you I wouldn't get a loan from these foreigners.
On Fourth consecutive credit contraction for Bahamas
Posted 21 November 2015, 6:03 p.m. Suggest removal
observer2 says...
PLP Vision 2030 - Help and Hope are here today!
http://tribune242.com/users/photos/2015…
On Fourth consecutive credit contraction for Bahamas
Posted 21 November 2015, 11:53 a.m. Suggest removal
observer2 says...
6. Many people like myself will stay with BTC and not get quadruple play. When cable goes off I don't get TV, internet and phone service. But if I go to Cable cell phone service will be cuts as well. OMG, how will I exist?
Cable Bahamas is a great Bahamian success story but shareholders need to watch the company and hold the directors accountable so they don't lose money like in BoB and City Meat by squandering shareholder funds with pie in the sky investments and partnerships. There is no need for them to expand into the US market or partner with the government. You don't great Bahamian companies like Commonwealth Bank doing this nonsense.
Note 1. Achilles, a invulnerable mythical hero who led the Greeks to victory in the Trojan wars but was killed by a small arrow to his heel. An Achilles heel is a weakness in spite of overall strength, which can actually or potentially lead to downfall.
On Cable says Q3 loss no trend
Posted 21 November 2015, 11:28 a.m. Suggest removal
observer2 says...
I think Cable's partnership with the Government will be their Achilles Heel (see Note 1 below on Achilles) for the following reasons:
1. The government will own 51% of the cell company. Does anyone know of any public/private partnership that has made a profit? Bob, btc, bec (scheduled for failure), Bamsi, Freeport, Baha Mar, CoB, Water and Sewerage and remember the 10 anchor projects of the first PLP government - all have failed. What makes Cable believe it can buck the trend. The only one that works is the Port which has a 20 year monopoly on importing goods to the Bahamas and is ripping off Bahamians with high shipping costs.
The finalization of Cable government partnership will take much longer than anticipated. This is not unusual. It will increase the interest payable bleed. There is also the potential that the deal will fail as Christie takes forever to make a decision.
2. The Finance VP is blaming the Preference share issue for the loss but that doesn't explain why operating profit (before dividends and interest) were cut in half falling from $5.6m to $2.9m. Why? Larger than anticipated US capital expenditures in a no growth/highly competitive US market? What makes Cable believe that it is invincible and can compete against cable giants like Time Warner, Comcast, Verizon and AT&T on their home turf?
3. Cable will need to finance the entire cell service build out while only pocketing 49% of the profits. Where will the government get financing from for its 51% of the infrastructure build out? The Bahamas is already $6.4 billion in debt and, lol, BTC's towers are so small they can't even accommodate Cable's transmitters.
4. Long term debt and preference share issuance has increased 25% to a crushing 1/3 of a billion dollars. How is this sustainable?
5. Like the telephone, cell phone service is next in line for technological disruption. Google and Facebook are giving away wireless data service in parts of India and Africa as the data collection is more valuable than cell phone service. We have seen the losses What'sApp phone service (owned by Facebook) has caused to BTC. Once What'sApp fully disconnects from its tether to a cell phone number it will make cell phones obsolete. What'sApp now has 900 million active users which makes it the largest phone company in the globe connecting 1 in 7 people on earth. Give it 5 years.
6. Many people like myself will stay with BTC and not get quadruple play. When cable goes off I don't get TV, internet and phone service. But if I go to Cable cell phone service I will be cut off from the world. OMG, how will I exist?
On Cable says Q3 loss no trend
Posted 21 November 2015, 11:28 a.m. Suggest removal