How to lose $22m in 6 months

George Kerr has a reputation for being an astute dealmaker and the following is based on the assumption that it was him and Bryan Mogridge behind the dealing at PGC and Torchlight. Your board under the leadership of Bryan Mogridge is double backing and he is contradicting himself, which ultimately cost PGC shareholders and arm and a leg.

Greg Bright's old article on George Kerr

Link contributed by a reader...

Financial firepower – why van Eyk’s new backer can fuel lasting growth

 van Eyk, the most influential research firm in the financial planning market, has a new cornerstone investor following the departure of the company’s namesake. GREG BRIGHT reports on the new-look van Eyk and the major shareholders’ plans for sustained growth. Mark Thomas has a new partner at van Eyk and, more importantly, he has the catalyst and firepower for some big changes to how his business is run and the firm’s continue

New baby born - Congatulations to the couple Mr Kerr and Mr Tinkler

This blog is getting all too serious so a reader suggested we lighten up with some hart warming news.

A new baby, Torchlight Real Estate New Zealand Limited (3892737) was born on 16 July 2012 to the lovely couple Michael Owen TINKLER (director) and George Charles Desmond KERR (director).
When looking at the glowing couple you will think it is their first time, but birth records (Companies Office) show the couple have brought 164 companies (Kerr 114 and Tinkler 50) into this world to date.

Congratulations!

Sidenote: Torchlight Real Estate New Zealand Limited (3892737) is wholly owned by Torchlight LP1 of which Pyne Gould owns only 10%.

Ratatat-tat -- Another one

It was pointed out to me that until recent events Heartland New Zealand's largest shareholder was Pyne Gould Corp and the fourth largest shareholder is Pyne Holdings. Focus on the corporate structure below.

1. Pyne Gould shares were held by Torchlight Securities (TS), which is 100% owned by Pyne Gould Corp (PGC).
2. Pyne Gould owns only 10% of Torchlight Fund LP1 (LP1)
3. Pyne Nominees is 100% beneficially owned by George Kerr and owns 9% of  LP1 and Mogridge has a direct stake in LP1

It is interesting to note that the money which I assume is being raised to plug the hole in LP1, which was funded by the loan from the cash fund is raised not by selling Kerr's shares in Heartland held through Pyne Nominees, but by selling PGC's Heartland shares held through TS. You would have expected the Heartland shares to at least have been sold down in equal amounts spread between Pyne Nominees and PGC.

Surprised?

Cheerio!
jA
Anderson Cooper once said, I think it's a good thing that there are bloggers out there watching very closely and holding people accountable. Everyone in the news should be able to hold up to that kind of scrutiny. I'm for as much transparency in the newsgathering process as possible.

Torchlight Securities - Rat in me kitchen

The UB40 song goes;

There's a rat in me kitchen what am I gonna do?

There's a rat in me kitchen what am I gonna go?

I'm gonna fix that rat thats what I'm gonna do,

I'm gonna fix that rat.

Speaking about fixing, what exactly is being fixed right under shareholders’ noses?

Think! Thiiiiiiiiiiiiiink about id!

The FMA is kicking up a big fuss about Kerr, Mogridge, et al using a Perpetual Trust vehicle to patch a hole at Torchlight Fund LP 1 and rightfully so.

But what is happeniiiiiiiiiiiing??

Will the real men in this country please stand up!

I was appropriately moved by the following piece that was brought to my attention today. The piece is copied below; read it first before you continue. My role at this blog is to convey what others think rather to "say" what I think, but I have something to say and I am going to say it.

PGC is such an obvious case of gross mismanagement and total abuse of power and the paralysis by the businessmen in this country perplexing. I absolutely agree with  Chris Lee that George Kerr should not be allowed to run or be the director of a public company and neither should Bryan Mogridge. To allow him to be classified as an independent director is laughable (see this blog for details).

Letter to the auditors of PGC, Heartland, PGW

So KPMG resigned. Wow, that is great news! Find the press release below and then continue to read.


Some time ago, one of our more experienced (in investment matters) readers told us about a strategy that sometimes yield interesting results.

If you have serious doubts about a company's financial statements then you write a letter to the auditors of a company highlighting the relevant issues. You can do this either as an open letter or as private correspondence, but if it is private then you make it clear you reserve the right to later publicise the letter. If you deal with auditors with half a brain cell then generally the end result is that the auditors put in double the effort to ensure they are comfortable signing off due to the implications of being forewarned.

Open letter to the NZX and FMA

The letter below went out to the NZX, the FMA. A reporter and Bryan Mogridge was copied on this letter. I will post any replies.

Cheerio!
jA

HNZ and PGW shares secure loan to buy more Heartland shares.

We promised to start digging in our previous post and guess what? Dig and you will find!

We believe the reason Bryan Mogridge specifically and the Pyne Gould board, at the time made up of George Kerr, Bruce Irvine, John Duncan and Mogridge, changed their story is because although they promised to return the assets “surplus to core business requirements” (cash, PGW and Heartland shares), they used it as security to a loan to purchase more Heartland shares.

Someone was kind enough to send us the following information with the following advice,

If you are in a hurry and assume someone is trying to hide something in a dustbin then a bright spark will turn the bin upside down and dig through the garbage from the “bottom up”; read this report starting on the last page. 

Bryan Mogridge on selling PGW- "Selling..would be foolish"

On 7 March the board announced the sale of 19.1m shares in PGW.

This action raises a significant question mark over the credibility of the board in general and specifically its chairman Bryan Mogridge. Here is why.

On 1 November 2011 the PGC board’s chairman, Bryan Mogridge said the following, at PGC’s AGM.