• Welcome to DOSBODS

    Please consider creating a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

Sign in to follow this  
spygirl

Ozzy busines acumen

Recommended Posts

Well, there was the whole S+G Quindell thing.

Now theres Westfarmers and Homebase.

Bought for 340m + debt in Jan 2006.

Sold for £1, 1lbn hit, in Jun 18.

When the Oz housing bubble pops there'll be nothing left - Nairu with kangeroos.

Share this post


Link to post
Share on other sites

Homebase have always been shit for home improvement. Unless of course, your idea of improving your home is filling it with overpriced plastic tat and twigs.

Share this post


Link to post
Share on other sites

Though respect for recognising their mistake and cutting their losses.

I have worked (and currently do work) at companies who have particular areas that always have and always will lose money but the MD has an emotional attachment to making them work.

Cutting your losses is much better.

Share this post


Link to post
Share on other sites
17 minutes ago, spygirl said:

Well, there was the whole S+G Quindell thing.

Now theres Westfarmers and Homebase.

Bought for 340m + debt in Jan 2006.

Sold for £1, 1lbn hit, in Jun 18.

When the Oz housing bubble pops there'll be nothing left - Nairu with kangeroos.

I thought Oz had virtually no national debt?

If the housing bubble were to pop the Oz government would just hand all the money to the banks like they did in the UK and bung a bit on the national debt. The Aussies would suck it up just like the UK did because all the pwoperty millionaires wouldn't like the alternative.

Share this post


Link to post
Share on other sites
22 minutes ago, Frank Hovis said:

Though respect for recognising their mistake and cutting their losses.

I have worked (and currently do work) at companies who have particular areas that always have and always will lose money but the MD has an emotional attachment to making them work.

Cutting your losses is much better.

This applies to all companies and people alike. Cutting losses and moving on is a cathartic process that most fail to understand. Nearly everyone I speak too would prefer to hold on to a paper or personal loss in the unrealistic hope it'll turn good. It's a characteristic of being human and you have to mentally condition yourself to overrule innate behaviour, learn, start afresh and move on.

The CEO deserves some heat here and a knife to the management team.

Share this post


Link to post
Share on other sites
9 minutes ago, swiss_democracy_for_all said:

I thought Oz had virtually no national debt?

If the housing bubble were to pop the Oz government would just hand all the money to the banks like they did in the UK and bung a bit on the national debt. The Aussies would suck it up just like the UK did because all the pwoperty millionaires wouldn't like the alternative.

My folks who are over there seem to think that Oz has dropped a serious bollock on that front. They may not have much national debt but they didn't put anything away during the mining boom (where that money went is a bit of a mystery) and are pretty exposed if things went tits up. 

The housing bubble over there in some areas rivals what we have here, the housing in Sydney and other cities is beyond mental though it may ease off a bit the further out you go. @wherebee is probably the man in the know re: Oz.

40 minutes ago, NTB said:

Homebase have always been shit for home improvement. Unless of course, your idea of improving your home is filling it with overpriced plastic tat and twigs.

Homebase is the only place I've ever bought something to find that it literally wasn't fit for use. Not broken, just so poorly made that it went straight into the bin out of it's packaging.

Share this post


Link to post
Share on other sites
54 minutes ago, spygirl said:

Well, there was the whole S+G Quindell thing.

Now theres Westfarmers and Homebase.

Bought for 340m + debt in Jan 2006.

Sold for £1, 1lbn hit, in Jun 18.

When the Oz housing bubble pops there'll be nothing left - Nairu with kangeroos.

To be fair it was pretty hard to see that in just 2 years after 2006 the economy would implode and we'd all turn into rent slaves and home improvement would turn into just a dream.

Share this post


Link to post
Share on other sites
6 minutes ago, Sgt Hartman said:

My folks who are over there seem to think that Oz has dropped a serious bollock on that front. They may not have much national debt but they didn't put anything away during the mining boom (where that money went is a bit of a mystery) and are pretty exposed if things went tits up. 

The housing bubble over there in some areas rivals what we have here, the housing in Sydney and other cities is beyond mental though it may ease off a bit the further out you go. @wherebee is probably the man in the know re: Oz.

Sure but their democracy is just as shit as the UKs, the banks will just strongarm the government and they'll fold, and the people will suck it up just like the UK in 2008. Just a longterm way of the banks stealing, they could take 40% of Aussie GDP before anyone even notices.

Oz is a huge, huge country, any government that wants to pop the housing bubble there need only break the land cartels and adjust planning regs. Why don't they? Same kind of reasons they don't in the UK, I guess. 

Share this post


Link to post
Share on other sites
4 minutes ago, gibbon said:

To be fair it was pretty hard to see that in just 2 years after 2006 the economy would implode and we'd all turn into rent slaves and home improvement would turn into just a dream.

Sorry that should have been 2016

Theyve have it less than 2 years.

Share this post


Link to post
Share on other sites

More bollocks dropped here also, as ANZ pulled of every SE Asian country that used to be their "Greater Mekong Strategy".

Not looking so great, they finally took an exiting $30M loss on Cambodia to get out, handing over ANZ Royal to Japan's J Trust.

Share this post


Link to post
Share on other sites
17 minutes ago, Sgt Hartman said:

My folks who are over there seem to think that Oz has dropped a serious bollock on that front. They may not have much national debt but they didn't put anything away during the mining boom (where that money went is a bit of a mystery) and are pretty exposed if things went tits up. 

The housing bubble over there in some areas rivals what we have here, the housing in Sydney and other cities is beyond mental though it may ease off a bit the further out you go. @wherebee is probably the man in the know re: Oz.

Homebase is the only place I've ever bought something to find that it literally wasn't fit for use. Not broken, just so poorly made that it went straight into the bin out of it's packaging.

Oz ha such an inflated cost base and seriously bent banking sector that a recession will see a Mad max scenario within 18 months.

Its a massive, bent bubble.

Once CHina cranks down consmtopn of Oz commodties there is literally no economy left.

The Oz economy is just two things - digging stuff to sell to chinese. And buy houses.

 

Share this post


Link to post
Share on other sites
Just now, spygirl said:

Sorry that should have been 2016

Theyve have it less than 2 years.

Ah right, yup they are idiots then. 

Share this post


Link to post
Share on other sites
1 minute ago, spygirl said:

Oz ha such an inflated cost base and seriously bent banking sector that a recession will see a Mad max scenario within 18 months.

Its a massive, bent bubble.

Once CHina cranks down consmtopn of Oz commodties there is literally no economy left.

The Oz economy is just two things - digging stuff to sell to chinese. And buy houses.

 

& tourism surely?

Share this post


Link to post
Share on other sites
5 minutes ago, Anglepoise said:

& tourism surely?

Yep.

Lets nip away for a romantic weekend in Sydney ....

Its backpackera mainly. No working person has enough holiday to make Aus viable as a non special hliday trip.

Besides, its painfully expensive.

And Oz does not have a service culture.

Share this post


Link to post
Share on other sites
5 minutes ago, spygirl said:

Oz ha such an inflated cost base and seriously bent banking sector that a recession will see a Mad max scenario within 18 months.

Its a massive, bent bubble.

Once CHina cranks down consmtopn of Oz commodties there is literally no economy left.

The Oz economy is just two things - digging stuff to sell to chinese. And buy houses.

 

At least it's possible to imagine how a rebalancing could be done in OZ - lots of big advantages there plus there's no national debt to speak of. I honestly can't see a way out for the UK that doesn't involve 10 years of soup kitchens and riots.

Share this post


Link to post
Share on other sites
4 minutes ago, spygirl said:

Yep.

Lets nip away for a romantic weekend in Sydney ....

Its backpackera mainly. No working person has enough holiday to make Aus viable as a non special hliday trip.

Besides, its painfully expensive.

And Oz does not have a service culture.

3.2% of GDP according to this, so smaller than I imagined:

http://dfat.gov.au/about-us/publications/trade-investment/business-envoy/Pages/august-2017/growth-in-tourism-a-shining-light-for-australia.aspx

Share this post


Link to post
Share on other sites
33 minutes ago, spunko2010 said:

They could have spent that £1bn on a viable alternative to Screwfix. That's the future for DIY stores.

+ strong online presence. It's amazing it's obvious to us yet all the overpaid directors and management consultants can't get their heads around it. I reckon how they see it running a viable business is a lot harder than running a large company into the ground while stealing their staffs pensions.

Share this post


Link to post
Share on other sites
1 hour ago, spunko2010 said:

They could have spent that £1bn on a viable alternative to Screwfix. That's the future for DIY stores.

They'll be fine until mum pops in for some bath sealant and the kids get reversed over by a lorry or forklift delivering to another industrial unit and the government and councils will suddenly remember there's a reason why it's not permitted under planning to run retail businesses from industrial estates, the genuine trade have mostly moved on elsewhere. Euro Crap Parts is operating the same model seemingly abandoning the trade for a Halfords type customer base whilst operating from cheap industrial estate units.

That's before the consideration that Screwfix is a business model essentially cannibalising a lot of its B&Q parent group's most profitable core business.

Share this post


Link to post
Share on other sites
2 hours ago, NTB said:

Homebase have always been shit for home improvement. Unless of course, your idea of improving your home is filling it with overpriced plastic tat and twigs.

That is where the profit is. You and I might prefer stores full of power tools a la Home Depot and minimal tat, such as in the US but, unfortunately the UK market cannot withstand it as the self-sufficiency type DIY market is much smaller than the US or Oz. Inevitably you've got to rely on large ranges of paint, decorating, tiles, soft furnishings etc. If I thought it was viable I would probably actually start a business like it. 

Share this post


Link to post
Share on other sites
16 minutes ago, SNACR said:

Very expensive to produce. 

Tp be homest, I do stuff online and just browse the catalogue instore.

Notsure why they still publish the catalogue.

Share this post


Link to post
Share on other sites
19 minutes ago, SNACR said:

That is where the profit is. You and I might prefer stores full of power tools a la Home Depot and minimal tat, such as in the US but, unfortunately the UK market cannot withstand it as the self-sufficiency type DIY market is much smaller than the US or Oz. Inevitably you've got to rely on large ranges of paint, decorating, tiles, soft furnishings etc. If I thought it was viable I would probably actually start a business like it. 

Agreed wrt profit margins. But it's a right pita. If I had a Travis Perkins reasonably near I'd be a bit happier. There's a Jewson but opaque comedy prices mean I never go there. 

As it is I end up having to go all over the place to get what I need and queuing in Screwfix behind a counter deep with gormless punters asking for advice is bad for the blood pressure. It must be possible to do it better.

Share this post


Link to post
Share on other sites
2 hours ago, spygirl said:

The Oz economy is just two things - digging stuff to sell to chinese. And buy houses.

Import: NHS qualified workers.

Export: Bar staff.

 

 

 

*Thought this would be The Osbournes.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.