Re: Octaviar MFS Premium Income Fund PIF
http://www.goldcoast.com.au/article/2010/01/17/179445_gold-coast-business.html
Michael King opens up about MFS
Nick Nichols, business editor | January 17th, 2010
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Thanks Seamisty.
IMLO What a load of selfish conceited spin. Or perhaps worse, crafted spin to garner sympathy for King's troubles ahead. I'm saddened that Nick Nichols fell for it. Are we living in the 21st century or in the pre-enlightenment millenium when the lives of a footsoldier were inconsequential to the fortunes and day to day minutae of the generals.
"Mr King's diagnosis was a potentially life-threatening blood clot -- a legacy of a life consumed by the unnatural pressure of billion-dollar deals." Rubbish. My 40yo mate had the same thing happen last year. Blood clot in his lungs. He's a chef running a busy kitchen. Two kids. Diagnosis was - genetic disposition. King should have been looking after his health for his dependents (shareholders and investors) or at the least had processes and sccession planning in place to manage the risk. Was it caused by hours worked or too much indulgence King? If King doesn't have a genetic disposition then this incident could provide another example of reckless risk taking by King.
"Details of the incident were never made public, and for good reason." What about continuous disclosure???
"Late in 2007, short sellers were on the scent of unbridled riches, picking the eyes out of a share market that was full of debt-laden balance sheets and drowning in a rising tide of fear. ... A month later, the short selling barbarians were at MFS's gates and the Gold Coast company had little more than a
couple of hours' warning of their arrival." That was your fault King. You promised us a safe investment and then built a risky business model. Short sellers will continue to be supported by economists and Government because they cause price discovery. Corporates like King don't like shorters because then corporates can't get away with overselling themselves. King, you painted a giant target on MFS and then stepped aside for us to take the bullet. They were always going to come for MFS weren't they? You then heaped risk apon risk when you and your similarly, let's say ambitious, fellow board memebers took out margin loans exposing the MFS empire to a sudden flood of shares on the market when you were forced to sell.
"In hindsight, the advice was flawed -- largely due to its unfortunate timing." Or perhaps you didn't tell UBS the full story did you now Mr King. That Fortress had you on the ropes and was pushing hard. What did that email from Fortress say? Something along the lines of: we don't know where they got the $100m from. Perhaps Fortress were all over you and were behind the shorting attack.
"The fact that UBS was willing to support MFS by underwriting the new share issue was swept aside that Friday morning during a disastrous conference call to brokers and investors." Now now Nichols. How can you paint this as support for King. You seem to have forgotten that UBS was already on the hook for $100s of millions. $900m of debt that went with Stella to CVC Asia Pacific wasn't it.
"Mr King, who is a measured orator and is still regarded in the industry as one of Australia's foremost authorities on funds management law," Did he tell you that himself did he Nichols. Perhaps PIF investors might agree he's an authority for managers, but certainly not investors. Conclusion, if King had anything to do with setting up a fund, don't invest because its expertly crafted to protect the manager to the detriment of the investor. Maybe that's why WC were keen to give it a go.
""The people that owe you money don't want to pay you, and the people you owe money to want to be paid yesterday," he said." WHAT!!!!!!!!!!!!!! Were you running a finance company or a pub. That's the sort of spin you hear from your local builder. Managing this issue is exactly what makes a finance company a finance company isn't it? I'm very sure it is. OMG!!!!! Who put this guy behind the wheel? Where was the Chairman!!!!! Perhaps MFS success had a lot more to do with the quality of the guidence from the previous Chairman. Peacock's predecessor. Perhaps King's first mistake was as early as May 07 when he let Fortress tie a noose around MFS's neck.
"Mr Green this week played down his role in the demise of MFS.
"I don't think it had anything to do with the conference call, but everything to do with MFS overpaying for assets," he said." Could that guy have put it an clearer and more succinct for you Nichols. But no. You went on to conclude: "The body count across the Australian Stock Exchange in 2008 - including the likes of Allco Finance and ABC Learning Centres - made it clear we were all in exceptional times." Yeah, the exceptional times that allowed the debt laden business model to flourish in the first place. No relief for King in Nichols last statement, King precipitated it and heaped it on us.
Perhaps the press is falling for King's 'charm' like his Canungra locals have. Who charms the piper, chooses the tune.