Catallaxy Files

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On Fairfax

34 comments

Christopher Joye had a great Op-Ed on Fairfax yesterday. At about 40c it must be close to break up value so you’d think something will happen sooner rather than later. What I’m not sure about is whether it is better to buy the firm now and take it private, or buy it piecemeal from administrators. Given Gina Rinehart’s experience I suspect the latter.

Written by Sinclair Davidson

October 3rd, 2012 at 7:45 am

Posted in Uncategorized

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34 Responses to 'On Fairfax'

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  1. FXJ price chart for the last five years.

    Utterly disgraceful.

    Rabz

    3 Oct 12 at 8:48 am

  2. What I’m not sure about is whether it is better to buy the firm now and take it private, or buy it piecemeal from administrators.

    Definitely the latter, Sinc.

    The refugee convoys to the ALPBC just about ready to get underway…

    Rabz

    3 Oct 12 at 8:51 am

  3. Utterly disgraceful.

    It’s becuase of the internet, Rabz. There was no internet before 2008.

    Gab

    3 Oct 12 at 8:53 am

  4. There was no internet before 2008.

    Yep, they really missed the boat on that interwebs thingy, didn’t they?

    Seriously though, examining that price history chart is quite instructive.

    That plummeting share price is no overnight phenomenon.

    The idiots on the board truly have been asleep at the wheel, presiding over one of the greatest destructions of shareholder value in Australian corporate history, as well as rendering the country’s most iconic media mastheads an absolute laughing stock.

    As usual, no one will be held accountable, much less made to pay for this wanton criminal incompetence.

    Thank goodness I never held any fauxfacts (laughing) stock.

    Rabz

    3 Oct 12 at 9:03 am

  5. Buy the bits from the administrators.
    These buffoons need to know that unemployment can strike them, not just the workers.
    It will be a life learning lesson.

    Winston SMITH

    3 Oct 12 at 9:04 am

  6. We’ve seen Misha Schubert has moved to a paying government funded position after a monster pay out.

    What positions has Labor prepared for the remainder of their goon squad?

    Token

    3 Oct 12 at 9:08 am

  7. Winston Smith @0904

    Annoying outcome of all the matters re Fairfax is that the Directors will pick up their lunchboxes and go to another Company and wreck that too!!!!!

    And the Public listed company fraternity won’t care a hoot!!

    Mike of Marion

    3 Oct 12 at 9:09 am

  8. It’s quite a coincidence the share price started its fall to earth just as a Labor government came into power.

    Gab

    3 Oct 12 at 9:09 am

  9. As Spot has not been sharing links from his cute files, here is one I dug up:

    “Liliger” Born in Russia No Boon for Big Cats

    Token

    3 Oct 12 at 9:11 am

  10. It’s quite a coincidence the share price started its fall to earth just as a Laybore gubberment came into power.

    Gab, the great plummeting commenced at the time of “Peak Rudd”.

    Rabz

    3 Oct 12 at 9:17 am

  11. Tokes, pictures of cute li’l big cat hybrids cant prettify this disaster…

    Rabz

    3 Oct 12 at 9:18 am

  12. lol I think Token wandered into the wrong debate room. :)

    Gab

    3 Oct 12 at 9:19 am

  13. I posted it in the wrong forum…

    …but I’m going to draw a long bow here and note the metaphore of what can be created from a dying species.

    Token

    3 Oct 12 at 9:45 am

  14. Nice save, Toke. I’ll buy it.

    Gab

    3 Oct 12 at 9:49 am

  15. If they privatise the ABC, will they adopt the Fairfax business model?

    Jannie

    3 Oct 12 at 12:50 pm

  16. The company might be about to go under, but at least they didn’t sell out to no stinkin’ capitalists!

    dd

    3 Oct 12 at 12:51 pm

  17. Rip Van Hilmer can read all about his time at Fairfax in one of those McKinsey case studies. It’s going the way of the candlestick makers.

    And the best way to acquire anything you think may have any value is always off a receiver.

    H B Bear

    3 Oct 12 at 1:10 pm

  18. The salary ofvthe ceobdoubled last year? Please explain!

    Borisgodunov

    3 Oct 12 at 1:40 pm

  19. Hey, where is dear old Spot?

    C.L.

    3 Oct 12 at 1:41 pm

  20. Hey, where is dear old Spot?

    He’s likely somewhere in the US, possibly blind drunk, going on his last few cryptic comments, including a new pop art gravatar…

    Rabz

    3 Oct 12 at 1:46 pm

  21. Spot007 disappears for a few weeks at a time. He’s probably in Monaco.

    Gab

    3 Oct 12 at 1:48 pm

  22. Jannie at 12.50. No one would buy the ABC. The bias is even sprtyed on the walls and all the buildings would have to be demolished.

    Mother G

    3 Oct 12 at 1:52 pm

  23. If they privatise the ABC, will they adopt the Fairfax business model?

    The editorial attitude is the same, but the ABC is ahead on the digital landscape.

    blogstrop

    3 Oct 12 at 3:40 pm

  24. I love the sentence ….”It (Fairfax) retains the most respected, trusted and valuable brands in Australian journalism”
    Last time I checked “The Australian” was published by News Corp.
    Predictably, Fairfax newspapers are struggling to come to terms with reality.

    Gerry

    3 Oct 12 at 6:12 pm

  25. When the Abbott Government cleans out the ALPBC, the ones who jumped ship from Fairfax should be first out the door. How long till it’s a penny dreadful, I wonder?

    perturbed

    3 Oct 12 at 9:35 pm

  26. How long till it’s a penny dreadful, I wonder?

    It will break up before long. They had their chance with Rinehart, but we learned that Fairfax is run by the collective. It really does seem to be worker-controlled. The editorial independence clause is basically that: a clause that says “and don’t tell us how to run the place.”

    They chose nobility over survival, because they would rather see it sink without a trace than fall into the hands of Rinehart, who comes from the wrong side of the political divide.

    dd

    3 Oct 12 at 9:48 pm

  27. Joye has form in calling for Rinehart to buy Fairfax. There’s nothing new in his analysis.

    I’m not sure why she would be well advised to buy it at this stage. Her paper wealth is starting to dwindle as the ore prices drop, most of it was illusory anyway. There’s only so much machinery around to dig the stuff out of the ground she leases while the going is good. She wouldn’t want to get too over-leveraged taking on Fairfax’s debt. Smarter billionaires than her have lost it all. Buying assets off administrators would be more prudent, though by that stage all the rats would have deserted the ship and the value of the mastheads would be seriously diminished.

    m0nty

    3 Oct 12 at 10:38 pm

  28. It can only drop so far, Monty, you turgid sack of shit. The world will always need ore.

    perturbed

    4 Oct 12 at 4:38 am

  29. most of it was illusory anyway

    It is was illusory, why did so many lefties want to tax it? How do you tax illusory wealth?

    boy on a bike

    4 Oct 12 at 5:40 am

  30. It is was illusory, why did so many lefties want to tax it? How do you tax illusory wealth?

    The inflated values of mining leases during a short-term mining boom are illusory. When some of that value is redeemed in profits from actual mining activity, that is taxable. The rest will dissipate back to normal levels when the boom fully subsides.

    m0nty

    4 Oct 12 at 6:22 am

  31. Mont, your grasp of mining economics is what we’d expect from a sports writer, although its hard to believe the troll herd have jobs at all.

    Blogstrop

    4 Oct 12 at 6:30 am

  32. Fat boy

    What the flying fuck are you trying to say, you idiot?

    You have no business talking about mining economics as strop suggests

    I neer seen a more incoherent string of words put together to make it sound intelligent.

    Shoo off.

    JC

    4 Oct 12 at 6:54 am

  33. It’s the difference between being asset rich and cash rich when a bust happens, JC. You want everything to be in cash when asset values drop from the peak. You know, sell high? Even you should be able to grasp that.

    m0nty

    4 Oct 12 at 7:05 am

  34. DD:

    They chose nobility over survival, because they would rather see it sink without a trace than fall into the hands of Rinehart, who comes from the wrong side of the political divide

    That describes their behaviour, but does not explain it in terms of rational self interest.

    I think the major flaw in the capitalist system, or at least in the governance arrangements, permits this kind of behaviour and is much the same as management voting themselves unjustified salaries and bonuses. Why do the friggin shareholers put up with it?

    But I dont see the Fairfax management/leadership as morally pure, sacrificing their self interest for the noble political cause. If they trash the company they would only do it if they felt their personal Super and career was secure, and they could get another gig at the ABC or such. My sense is that most would sell out as quick as necessary, but there are not many buyers.

    As in the 2GB boycotts, it interests me how capiltalist organisations, particularly the media, support a Socialist system dedicated to their destruction. (Shades of self loathing Gays supporting Hamas). Short term profits are OK, but long term destruction just does not make sense.

    I mean, do they teach the same nonsense in business school as they do in journalism school these days?

    Jannie

    4 Oct 12 at 10:54 am

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