Better ways to milk the BHP cash cow

Comments on Stephen Bartholomeusz “Milking the BHP cash cow”, 1/02/2011, http://www.businessspectator.com.au/bs.nsf/Article/BHP-Billiton-Rio-Tinto-copper-gold-iron-ore-pd20110201-DN3SR?OpenDocument&src=sph&src=rot

It appears that the big mining companies might need to establish capital assets management teams within.

Clearly they have the expertise in their own mining industry.

But they probably lack the expertise to fully take advantage of their cash or liquid assets and the world equity markets over both shorter and media terms.

Further, this type of assets management teams can combine the flexibility of movement between equity markets and merger and takeovers to generate returns that are not available without such synergy. It is the economies of scope, perhaps.

In that respect, Telstra is probably in the same basket in terms of cash flow, although it should have diversified much earlier.

Say no to SGX taking over ASX

Comments on Maurice Newman “Say yes to Singapore merger or risk irrelevance”, 27/01/2011, http://www.theaustralian.com.au/news/opinion/say-yes-to-singapore-merger-or-risk-irrelevance/story-e6frg6zo-1225995058830

It is rubbish, isn't it?

Come on! It is not a merger, is it?

Some commentator have pointed out that SGX is smaller than ASX and is less efficient that ASX. So why should the ASX be taken over by SGX?

Further, isn't SGX partially owned by the Singapore government? Is it as free as the ASX?

Don't confuse a merger with being taken over!

Improve employment contract in wake of crisis

Comments on Ken Phillips “The core of the company is rotten”, 19/2009, http://www.businessspectator.com.au/bs.nsf/Article/Nobel-prize-Alan-Greenspan-pd20091019-WXQK3?OpenDocument&src=sph

It is unlikely in practical terms to have employment contract worked out as nicely as commercial contract.

However, it is entirely possible to have employment contract especially those for executives made to take account reasonably longer term effects on those executives on firm outcomes.

This would simply requires a delayed payments dependent on not just the outcomes when an executive is in charge, but also an independent, objective and fair evaluation sometime after the employment is over.

If the employment contract for executives is made in such terms and there are independent and objective evaluations, then there should not be any problem with for it to provide the most appropriate incentives to executives and fair pays.

Further, criminal charges can be laid to executives who are later shown as fraudulent during their employment.

This will ensure firms are as efficient and fair as possible.

A source from BS site: "DISTILLERY: U-shaped recovery"

A good and humoured DISTILLERY of some commentators comments: David Llewellyn-Smith "DISTILLERY: U-shaped recovery", 19/10/2009, http://www.businessspectator.com.au/bs.nsf/Article/DISTILLERY-U-shaped-recovery-pd20091019-WXU83?OpenDocument&src=sph

On a different note, Ken Phillips has some commentary on company governance and this year's Nobel Prize laureate for economics Oliver Williamson and his work in this field: "The core of the company is rotten", 19/10/2009, http://www.businessspectator.com.au/bs.nsf/Article/Nobel-prize-Alan-Greenspan-pd20091019-WXQK3?OpenDocument&src=sph