Bullish Thoughts:
How Disgusting
Bullish
Thoughts discusses some ungodly British behavior, money transfer mania and bad
mouthing, dump retailers, Chinese and Nigerian c-samples, creative accounting,
CPIX anomalies and attempts to raise cancer awareness in this issue.
Bullish Thoughts is
disgusted.
Below
is an extract from the 15 October 2010
issue of Bullish Thoughts:
“…Of
atheists and British political leaders
Ed Miliband, the new British labour leader, has
stated in no uncertain terms that he doesn’t believe in God. He did not say
whether he believes in Charles Darwin’s Evolution Theory either.
His brother David Miliband (former Foreign
Secretary) has also confessed his atheism.
Ed
Miliband’s declaration means two of the three leaders of major British
political parties are self-proclaimed atheists.
Nick
Clegg, the Deputy Prime Minister, also confirmed he does not believe shortly
after being named Liberal Democrat leader.
Another
“notable” Briton, theoretical physicist and cosmologist, Stephen Hawking
recently pronounced that he believes God is not necessary in our lives. No
wonder he doesn’t talk!
Bullish
Thoughts being a Christian, is just concerned by these developments in the UK.
Maybe
that’s why behaviours which are worse than that of pigs and dogs are
celebrated.”…
Bullish
Thoughts also remembers the noise around the two Malawian “men” who decided
God’s wrath on Sodom & Gomorrah was child’s play and wed in public. Never
mind the fact they went on to be wed in the joint during their short spell.
Here is
what disgusted Bullish Thoughts:
Accept gays or forget UK aid
It is now official: poor African countries including Malawi must abandon their rigidity against same sex marriages as a condition for receiving British aid. Britain’s International Development Secretary Andrew Mitchell is quoted in UK's The Daily Mail through his spokesperson that Britain has resorted to cut aid to African countries that are against gay marriages. The Malawi government has responded by saying homosexuality is unacceptable and no amount of threats can bully Malawi to legalise it, even if means Britain keeping its aid! That is the measure of government's resolve as it insists it will not bow down to pressure from Britain to relax on its stance against same sex marriages. The British government was reported on Sunday that it has frozen aid of about MWK 4.8bn to Malawi because of position on gay rights. The Malawi government has blamed the British government of using Malawi's economic status to impose its beliefs and bemoaned the influence that developed countries put on developing countries which are unrealistic in the sense that they demean the sovereignty of other countries.
Oh man! Oh man! Oh man! Agrhhhhhhhhhhhhhhhhh!
God have mercy
please!
No ching ching for Zhing Zhong Condom supplier
A South African
court has blocked the
government from buying 11 million Chinese condoms, saying they are too small.
The finance
ministry had awarded a
contract to a firm called Siqamba Medical, which
planned to buy the Phoenurse condoms from China.
A rival firm, Sekunjalo
Investments Corporation, turned to the High Court in Pretoria after losing the bid,
arguing that their condoms were 20 percent larger than the Chinese ones.
Judge
Sulet Potterill
blocked the deal with Siqamba, ruling that the condoms were too small, made
from the wrong material, and were not approved by the World Health
Organisation.
South Africa has more HIV
infections than any country in the world, with 5.38 million of its 50 million
people carrying the virus.
Bullish Thoughts was just left
wondering if the Chinese were trying to maximize on material or they used the
wrong sample.
But one thing for sure is that this
call option on society’s moral decadence will be big business 2 years down the line
particularly with more and more governments toying with the idea of condoms in
schools and agrhhhhhhh in prisons as well. There certainly are some British
elements even in Zimbabwe’s parliament!
iMobile iMoney iTransfer…
Bulls & Bears will be launching
its mobile money transfer services in a few hours. The team is still toying
with the name for the product but the byline will be something like:
“No Internet Required. No Strawberry
(oops Blackberry) Required. Only iPhone 4S and No Sim Card”
Nobody does iMobile iMoney iTransfer better than iBulls n
iBears!
Zim
imported inflation anomaly…
A Bulls n Bears
subscriber sent Bullish Thoughts n email asking why Zimbabwe’s inflation seemed
to be continuously rise despite the Rand weakening materially versus the US$.
Ordinarily one
would expect that as the Rand weakens, Zimbabwe importers would get more Rands
for their US$. The South African CPIX is fairly flat, so the expectation is
that Zimbabwean prices should be either fairly steady if not falling.
At least that’s the
expectation from any rational person cum consumer!
Bullish Thoughts
hasn’t done any comprehensive checks on what he thinks is the reason the
country doesn’t benefit from a weakening rand especially on consumer goods
(both durable and non-durable) so he will make an assumption:
Importers are DUMB!
Yes, he thinks they are dumb.
The price increases
the country witnesses on products out of South Africa is purely because
importers DO NOT ACTIVELY (adequately/ sufficiently) participate in the currency market. And most
likely the bankers are not helping the situation as they would prefer to trade
for their own positions.
The issue Bullish
Thoughts is putting across here is that if the Rand goes to ZAR7.94 and every
importer keeps their US$ in their bank accounts, that means nothing for
Zimbabwe.
For the Rand
weakness benefit to filter into the shops, there is therefore the need for
importers to actively trade in Rands, i.e., buy the currency in its weakness
and sell in strength.
That was they will
maximise the ZAR in their accounts and then be over time able to pass on the
benefit of a weakening Rand to consumers.
Well, it’s just a
thought but Bullish Thoughts challenge you to check how many importers have
dedicated Treasury teams specializing in currency risk hedging.
Bullish Thoughts is
waiting to get the feedback from the OK Zimbabwe, TM, SPAR, Delta, etc about
the ZAR strategy vis-à-vis the currency’s sensitivity to investors’ risk
aversion bouts on emerging markets and their currencies.
At ZAR7.94, Bullish
Thoughts says the Rand is still a worth buy.
Zimbabwe's headline
consumer inflation quickened to 4.3% year-on-year in September from 3.5% in
August. Zimstats figures showed increases in the prices of food, alcoholic and non-alcoholic
beverages, as well as transport and communication were behind the jump in
inflation. Utility charges, especially electricity, also drove inflation higher
after the state power utility raised prices by 31% in September. On a
month-on-month basis, CPI accelerated to 0.8% from 0.1% in August.
Chartered Creation
of Accounts…
A colleague brought this particular
quote by attributed to Benjamin Graham, Warren Buffet’s mentor:
"Contrary to expectations, no
changes will be made in the company's manufacturing or selling policies.
Instead, the bookkeeping system is to be entirely revamped. By adopting and
further improving a number of modern accounting and financial devices, the company's
earnings power will be amazingly transformed"
Bullish Thoughts can only say: Be scared
of the financial reports published by these listed companies. Unless there is a
reasonable dividend at possibly 3-4x cover, be scared of good results which are
cashless. Unless of course you are a Berkshire Hathaway shareholder!
Profits are just opinions of
accountants. Dividends and cash are facts so just get the facts not IASB/IFRS
reclassifications/ modifications to accounting practices!
Lastly…
Bullish Thoughts is not your typical
sungura/cele/museve and genre kind of consumer but he is saddened by the
passing on of Tongai Moyo. The first and last time Bullish Thoughts saw the man
was at Extra Mile some weeks back where “Muchina Muhombe” was the act ahead of
Sulumani Chimbetu. Those who knew the guy (assumed show regulars) couldn’t
believe the state of the man. He was not well!
Suffice to say that cancer is
increasingly becoming a top killer in the country, the man fought his battle
(and very publicly too). Just like Steve Jobs, it was probably for 7 or so
years.
Bullish Thoughts has two things to say
here:
The first is that October is the Breast
Cancer Awareness Month so get a check up from your spouse or doctor to allow
for early intervention if you have the disease.
The second is that the whole purpose of
Bulls n Bears series is to improve financial intelligence. That’s why the
service is for free…to financially educate as many people as we can. Death is
the only certainty in life so prepare today for it. Prepare for your family and
colleagues. Save money, invest in real estate or such other assets with a
resellable characteristics. Or get a life policy that will take care of the
family after you the breadwinner is gone. As for the life policies, if you
don’t know where to get them, get in touch and we will assist you FOR FREE
again.
Invest Wisely!
**The author of this report does not hold
shares in any of the companies discussed/ mentioned in this report.
Bulls n
Bears
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