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The
E.C. of Arzignano (VI) after having acquired the Interbanca shares (at
the opening and also afterwards) has required a well-known financial
daily an opinion about the investment and the company.
After having duly highlighted the positive results communicated by the
six-months report and almost to justify the measured interest of the
Stock Exchange toward the title, the reply ended with this note. "The
activity of the business bank is linked to the Stock Exchange trends
and more in general to the luck of the investments carried out: so the
risk is so high that hardly results are constant in time. Prudence is
de rigueur ".
Surely the Interbanca share does not fit speculation, the sudden rises,
those who are "fond" of funds and/or the public of the coulisse, as
the analysis of the daily negotiated amounts highlights. Substantially
it is not a title to 'play' with at the Stock Exchange. Is true the
same, furthermore, that the investment in Interbanca gives certainty
on dividends and so ensures a rent, while many of the companies 'on
vogue' have declared that for next years they won't distribute dividends.
Provided that, a meditated evaluation of Interbanca and its management
must ensure the investor. Data of the previous final balance communicated
these days point out in fact that the 1999 results are satisfying at
all.
The
increases of the "operating result " (+43%) and of the net profit (+59%)
deserve appreciation.
Surely
nobody can bet on its future, but nobody, facing those positive results
can reasonably predict it as "worrying". If a reproach must be made
to the company it concerns a certain "reluctance" to promote its image
and to highlight, by adequate initiatives, structure, contents, activities
and results. This overplus of "privacy" falls unavoidable over the title
at the Stock Exchange list. One invests on whom one knows and one knows
who wants and knows how make him know: you may like it or not, but it's
this way.
If it's true that all show often is equivalent to no substance, is true
the same that to induce someone to buy the roast it must be spread the
smell, at least.
Banca
Agricola Mantovana Windswept Chats
.
The
winning assault of the Banca Monte Paschi Siena to the Banca Agricola
Mantovana is well known.
Maybe it's less well known to the great public that BMPS after acquiring
by a TOB more than 73% of the capital (expired also the term for withdrawal)
wanted that a shareholders' meeting deliberated an "abundant" reserves
distribution by which the BMPS cashed more than 260 billions.
In
the minutes of the meeting on 4.10.'99 it can be read:
1) " Extraordinary reserves distribution ". "The president reminds how
the Bank has pursued in time the target to strengthen the assets structure,
indispensable measure in order to warrant solidity and development,
both by increase of capital and mainly by a policy of allocations of
a substantial part of profits. The assets set-up reached places among
the highest of the national banking system."
After
neither four months, the Board of Directors denies its own assertion
in the loudest way.
In
the press release issued on February 7th, about the previous final balance
of the 1999 financial year it is written:
"The profit and loss account recorded a decrease of the net profit and
placing on 118,3 billions as respect to the 140 billions nearly of the
previous financial year (-15,7%) (omissis?). Therefore the decrease
is due to the policy of allocation and devaluation over credits carried
out according to the utmost prudential criteria that will allow pouring
its own benefits into next financial years.
" So on October, the reserves distribution is justified by the opportunity
to reduce assets since they exceed the requirements of the Bank.
On February the "utmost prudential allocations " in order to a better
assets set-up.
And further, on October it is ensured that the reserves distribution
is the instrument to ensure single shareholders "fair returns on the
invested capital " and on February it is "cut" the profit carrying the
unavoidable repercussions on dividends.
The worst is that certain press issues without deepening the "nonsense"
that often stuff the press releases of many companies and that allows
some Boards of Directors to contradict scot-free. "Tertium non datur".
Nitpicking and quibbles are in fact only windswept chats.
The
Rinascente Announced, missed and ...forgotten targets .
The three tiles is a game that by disposing with skill speed certain
charts on table you may mislead players.
These days several Boards of Directors examine the 1999 previous final
balances; on time the press releases spread the results by a technique
that someway (mutatis mutandis) recalls that of the three tiles.
A
classic, without any will to libel or to outrage is the press release
concerning the Rinascente on January 27th.
The
first sentence highlights that the group's "sales" have overcome 10.000
billion.
In the second period it is underlined that the increase has been 18,5%.
This way the reader is " impressed" and memorizes: an over 10.000 billion
billing, a 18,5% increase; and then naturally he ends: "1999 has been
an excellent financial year!" At the end they inform that "the development
program " has recorded in 1999 the opening of a hypermarket, supermarkets,
3 shops galleries, 3 Upim, a big department store "La Rinascente", 1
Bricocenter and 1 Leroy Merlin, besides de reopening, after a complete
renovation, of the Upim department store in Milan S. Babila and Spadari.
The report ends then arising a positive evaluation in reader.
The
game succeeds: attention has been "oriented" toward the wanted direction.
Indeed the press has concentrated titles about billing over the over
10.000 billions and the 15.5% increase. Someone (what a praiseworthy
exception!) reported about a 7,3%; nobody noticed that the 7.3% grow
(that is, all things considered, moderate) could derive partly or at
all from the contribution of the new opening.
Furthermore,
nobody reminded that the Rinanscente's General Director Giovanni Cabolli
Gigli at the 98 balance examination pointed out for 1999 an over 10.700
billions billing, a 23% growth and increases in ROE from 10 to 15%.
It can be added that in the press release there's no reference to the
profitability of the enterprise in 1999, the sole date really interesting
markets and shareholders. On February 8th there will be a meeting: maybe
we will know more about announced, missed and ...forgotten targets.
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