Neptune Marine – Beware of "Growth through acquisition"

Growth by acquisition doesn’t work most of the time, and here’s a classic example. Companies seem to over-estimate the benefits of acquisitions and under-estimate the difficulties in integrating acquired businesses.

Neptune Marine (ASX code NMS) is an Australian company based in Perth. It provides services to global oil and gas, marine and renewable energy industries. It provides construction support vessels, underwater welding, surveying, commercial diving and many other sub-sea services. With the demand for energy and other sources of power expanding rapidly, you’d think that most companies wouldn’t have a problem making a decent profit.

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AJ Lucas – shareholders aren't treated like owners

Managers of many public companies seem to forget that they are there to manage the company on behalf of the shareholders, who actually own the company. The directors of AJ Lucas treat the company like a personal cash box.

Total Net Profit over last 12 years (1999 to 2010 inclusive) was $122m which includes $157m for the sale of assets. Excluding that sale, the company has made a Net Loss of $34m. Over the same period, Directors and executive personnel have walked away with $41m in salary and bonuses, while raising $114m from shareholders. See table below for details. Read more of this post

How to make your kids millionaires

Any parent wants the most out of life for their children, and I believe one of the best things you can give a child is financial freedom.  However, more important than just providing them with the money to be financially free, is giving them the knowledge to build and maintain financial freedom by themselves.

I began the process of investing for my children 3 years ago, when my youngest child was 2 and the second had just been born.  In this blog post I will outline some simple steps that anyone can take in order to begin building wealth for your children and educating them along the way. Read more of this post

Fenner & Aveva reviews

I was recently asked to have a look at two UK listed companies, and Mike has kindly allowed me to share my thoughts on them on his blog. The two companies in question are Fenner & Aveva.

Fenner

First we’ll look at Fenner.  According to their website, Fenner are ‘A world leader in reinforced polymer’.  One of the main things they make is conveyor belts, and other drive belts, servicing the mining, forestry, aggregate, paper handling and many other industries.

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