FYI | Feb 07 2007
If my memory is correct, it was on a Thursday morning, now about eight years ago. I accompanied a handful of technicians in a minibus full of equipment to the headquarters of one of the largest banks in the Netherlands. In the neighbouring room of the large auditorium we set up cameras and internet connection to broadcast the AGM live via two websites on the net.
One never knows with these things, there may have been similar initiatives in other corners of the globe at the time, but I’d like to think we were the first pioneers in taking live financial video coverage to the internet.
Soon after the initial broadcast we had our first cornerstone investor, a local investment bank, and the concept became a separate company.
Eight years later, FinanceTV has endured quite a few changes: different shareholders, other staff and partners in seven European countries. English speaking internet citizens are probably better off by visiting the so-called Global site (it’s the only one in English):
http://www.financetv.nl/site/index.cfm?cid=7
Of course, setting up a similar project here in Australia would have been plain impossible because of the lack of sufficient broadband internet infrastructure. Australia has caught up in the past few years though and since a few months similar initiatives are being set up over here. From stockbrokers to online media to dedicated internet video companies - everybody seems to step into moving pictures and audio these days.
Given the information in the first few paragraphs, one may be inclined to think that FNArena is busy preparing its own internet TV service, but no, we’re not.
Main reason why not is because we do not see us bringing anything new to the table (as opposed to what we are doing currently). The second reason is that I am convinced that after the initial enthusiasm will have subsided the majority of all these broadcasts will find it hard to attract substantial amounts of visitors.
I am making these predictions because I know the limitations of the medium. Long stories are out, one of the internet video journalists told me a few weeks ago. I instantly disagreed. Feature stories, including my Weekly Analysis and editorials, are among the most read items on our service.
And just to make sure I am getting my point across: I don’t see anyone producing a broadcast as insightful as our feature stories on investing in gold, or the silver market, the outlook for uranium or, published today, an overview of market expectations regarding energy and metals prices.
I am sure many readers will agree with me nothing beats having a written story that can be stored, printed and re-read at a later time, if necessary.
I hope I don’t offend too many people when I say that most people working in finance will never be a threat to Claudia Schiffer either.
This does not mean internet TV has nothing to offer. In fact, I spent some extra time behind my pc on Friday and Saturday, listening to an audio broadcast of CuDeCo (CDU) chairman Wayne McCrae’s presentation at the Sydney Mining Club. I would have loved to see this in video, but the audio report is sufficient for an interesting and at times titillating experience.
You won’t catch me acknowledging this very often, but this is where the written word is beaten fair and square by audio/video technology.
I advise all shareholders and investors eyeing this stock to listen to the broadcast themselves. It can be found in our (more) Sources of Wisdom section, or simply on www.brr.com.au. After that, you can probably make up your own mind whether you want to risk your money on this project.
For those who think this sounds a bit too much of an effort (yes, that too is a disadvantage of the audio/video media) here’s a small rundown of the event. Wayne McCrae is fighting a war: with the ASX, the Sydney Morning Herald, large resources firms, stockbrokers, to name just a few.
While I am not denying that some of his comments would seem justified, I also believe all that is being overshadowed by the fact that he intends to walk away from it all with as many millions in his bank account as possible.
There is, in essence, nothing wrong with people wanting to secure their share of the pie. No doubt McCrae will argue bankers and larger companies are taking more than their fair share all the time (and there definitely is a large chunk of past regrets in play) but I would question whether the chairman’s actions are currently serving the best interests of CuDeCo shareholders.
I notice, for instance, that the share price has been in steady decline since the presentation last week.
Among the elements thrown into the public by McCrae are: some not to be named forces are manipulating CuDeCo’s share price, smaller retail shareholders are leaving the company’s shareholder register, management is withholding drilling information to fend off potential suitors at this stage (McCrae intends to go with a big bang), CuDeCo has told neighbouring Xstrata it is not interested in setting up a joint venture - it’s all or nothing for anyone who wants to have access to what McCrae ensures will prove to be the world’s richest copper resource.
And oh yes, he is convinced the company will be in different hands by Christmas this year. And frankly he doesn’t give a damn as long as he will have his millions.
All this, of course, has once again alerted the bourse authorities and given the Sydney Morning Herald sufficient ammunition to have another swipe at the company that will probably never lose the stigma it currently bears.
My conclusion is that Wayne McCrae is either a very smart fella, or a not so smart one. Although if I had to make a bet (and everyone knows I am not a betting man) I would bet on the third option: he’s kinda smart but he doesn’t give a damn. He’s simply counting the days to retirement – with millions in the bank.
Just how this is going to pan out for shareholders remains an open question.
Till next week!
Your I think everybody can make up his own mind about this one editor,
Rudi Filapek-Vandyck
(as always supported by the Ab Fab Team: Greg, Chris and Terry)