Healthcare

GE still $15 billion in negative equity

GE.jpeg

While GE might have rallied back above $10 on the back of its 1Q results released overnight, the company’s goodwill shrunk $5.5bn but the company remains deeply in negative equity to the tune of $14.7bn. Why do analysts perpetually focus on the revenue and profit, rather than look at the elephant in the room? Especially as we are at the top of an industrial cycle with warning signs that global growth is already slowing faster than originally anticipated. GE is heavily indebted.

Of the $53.2bn in goodwill and $ $17.1bn in intangible assets, GE shareholder’s equity (including non-controlling interests) is at $55.6bn. The gap is c. $14.7bn.

One of the interesting notes in the 10Q regarding the goodwill Oil & Gas accounts for 42% of the total. GE noted in point 8.

While the goodwill in our Grid reporting unit, Hydro reporting unit, and Oil & Gas reporting units is not currently impaired, the power and oil and gas markets continue to be challenging and there can be no assurances that goodwill will not be impaired in future periods as a result of sustained declines in BHGE share price or any future declines in macroeconomic or business conditions affecting these reporting units.

We can celebrate the short term but when an industrial stock, one which was the largest company by market capitalisation almost 20 years ago, has such an awful balance sheet (354% debt: equity) and blew $45bn in buybacks in recent years, one has to wonder how investors can look at GE as a paragon of value? Reminiscing on the halcyon days of a stock is not a method of sensible investing when staring at reality.

Gladys Berijiklian wipes the floor with Michael Daley

Listening to the NSW Election debate, incumbent Premier Gladys Berijiklian wiped the floor with Opposition Leader Michael Daley. Daley’s opening remarks were well prepared but it was all down hill from there when it was impromptu.

Daley was short on figures on pretty much every issue. Berijiklian knew them off by heart. Schools, climate change spending, public assets, electricity costs, mental health, hospitals, tolls, unemployment, education, water etc etc. Daley mentioned numerous times in his answers that he needed to double check his figures. On TAFE spending he guessed $3 billion. In reality it is $64 million.

When asked for a show of hands over the contentious Allianz Stadium rebuild, the Penrith audience backed the Premier by around 2:1.

The Premier made the rebuild costings clear and pointed out they’ve been in the public domain for over 12 months. Daley didn’t even have clear costings on how much it would cost to renovate. At one point Berijiklian was telling him how much bringing up to meet building codes would be. One would think he’d be all over the numbers on an issue he has expressed much passion over. She said that the new stadium would cost the same as renovating the current one.

Whether 100 undecided voters influence the election is a moot point but Berijiklian was the clear winner. The end result. Of 100 undecided, 50 would vote for the Premier and only 25 for Michael Daley.

How hardcore are you really?

Once again the pill testing argument will rear it’s ugly head after 14 Australia Day revelers were hospitalized at two events, the HTID and Electric Gardens concerts. 6 remain in critical condition. At what point will we hand responsibility over to ‘legal’ adults?

If voting age party-goers are caught with ‘illegal’ substances then charge them accordingly. If people don’t like the law then put action behind a proposal to change it. Despite police sniffer dogs, people smuggled in drugs in condoms and ziplock bags presumably hidden in the nether regions. Coffee grounds were used to throw off the scent.

The real question is if one is hospitalized, why should tax payers pick up the tab for their selfish, reckless behaviour? Would it be a deterrent to let them know that any medical treatment (likely expensive) would not be covered by the state? Put measures in place to ensure the bill is paid for out of future income tax or lowered dole payments. Then let these adults work out the risk reward ratio of taking illicit drugs. Instead of having OD survivors tell horrid tales, they might talk of the financial penalties that followed which have made life considerably tougher than going cold turkey.

If you take illegal pills, don’t say we didn’t warn you. Let’s see how hardcore you really are.” That should be the slogan. Flash up the average cost of an OD treatment on the big screens.

56mn abortions a year. Worth celebrating?

Virtue signaling. Lighting up monuments is the way progressives like to show how ‘woke’ they are. Usually towers and buildings have light thrown upon them after terrorists murder innocent civilians. It is the perfect way to show future terrorists that the West will continue to remain impotent.

Of course love trumps hate is a strategy for liberals. Would be terrorists undoubtedly have pangs of guilt when seeing a building lit up. Deep in their hearts, the defining factor in choosing not to eviscerate concert goers, spray AK-47 fire at cartoonists or run people down in trucks comes from seeing the masses splash French flags over social media avatars.

Still, how crass can NYC be to bathe skyscraper towers to celebrate abortion? Surprised they didn’t invite Michelle Wolf to do her abortion sketch on taxpayer dime in Central Park! What better display of a government acting in the interests of only some of its constituents.

By all means CM respects legislation introduced via democratic process. However is it necessary to champion the terminating of fetuses? Why not conduct a fireworks display for added effect? It is hard not to see it as anything other than an overt and deliberate slap in the face of the pro-lifers and the current administration. Just as easy to pass the legislation without flipping the bird.

Let’s look at the stats.

c.700,000 fetuses are terminated in America each year. Down from 1.4 million in 1990. Hardly stats to cheer about. Of course the arguments for a woman’s right to choose will always be thrown at pro-lifers. Yet allowing termination until birth?

Eurostat statistics on abortion reveal that Germany, France, UK, Spain and Italy alone terminate a combined 760,000 fetuses per annum. Across the EU-28 there are 1.25mn terminations. Without getting into a debate on abortion rights, the pure statistical number points to 20.4% of fetuses never make it out of the womb alive.

According to the Guttmacher Institute some 56 million abortions occur annually. Every. Single. Year. Think that WWII saw 50 million deaths in 6 years of conflict with wide spread use of lethal weapons. So abortions kill at a far higher rate than global conflict.

How ironic that a leftist professor at Birmingham City University, Kehinde Andrews, accused WWII RAF pilots of war crimes. On that logic what does that make abortion clinics? Safe houses?

Take a look at the following photos if you’re game and ask yourself whether abortion is something to celebrate? Once again, this piece isn’t a cry to exert control over women’s rights rather question society and its approach to taking more individual responsibility.

Or are we mistaken to think that the real reason NY lit up these monuments was to lament for all of the fetuses with heartbeats that never had a say in the very legislation that killed them the day before delivery?

Dill Testing

Pill testing. Yes, it is difficult to stop the youth of today popping drugs at rave concerts. If certain drugs like MDMA are illegal, why is it OK to turn a blind eye at the concert gate? If there is medical evidence to say taking MDMA is harmless then change the law. Sadly the tragic deaths of a handful of kids has shown this not to be the case. Overdoses and bad batches dispensed by nefarious actors.

Is the desire to resort to hallucinating narcotics so great that the government should back legislation to allow young kids to have their risky tablets tested?  Imagine if those asking for their pills to be tested were required to put their name down against the test? None would test! There would be outrage over a violation of privacy. Yet we the tax payer invariably foot the bill of the reckless behaviour should things go wrong. Perhaps attendees should be required to file their Medicare number alongside the pill test and pay higher premiums for willingly taking higher risks? Again, none would line up.

The arguments for pill testing surround removing the potentially deadly drugs off the market by creating a virtuous circle of warnings within the drug taking community. The idea is that they could make informed choices were pill testing made available and inform each other what to avoid. Research from Austria showed that 50% of those that got pill testing changed their consumption behaviours.  Sadly the other 50% did not. Other examples of positive outcomes from pill testing revolve around wider knowledge about what drug compounds are popular which helps medical and emergency services better prepare. There is a company in America which sells NARCAN which revives those that overdose from the dead. You can read more about that here.

The arguments for pill testing seem so strong that it is any wonder the government doesn’t go the whole hog and set up its own narcotic stall at these concerts to sell controlled substances directly to the public. Two MDMA tablets and a foil of heroin please. Are those bongs on special?

The stupidity with pill testing is in the word – “ILLEGAL”. If CM gets caught speeding, why shouldn’t I be as justified in saying I was acceleration testing my potentially lethal BMW to make sure the speedometer was accurate? No NSW Highway Patrol officer will grant clemency. I will be fined for breaking the law. Quite right too.

Then we get Greens MP Cate Faehrmann admitting she’s taken MDMA since her 20s. In her doing so we can now have an honest and open debate. Fantastic to have an elected official out herself as an illegal drug user. Is this the type of lived experience we should be basing policy off? How ironic she lambasts the zero tolerance policies of the NSW Government? It may well be costing lives but the measures to combat are proving ineffective.  That is the issue. Time to think outside the box.

Why not just have police controlled mandatory swab tests at exit, fully funded by the event organizer, who can impute that in the cost of the ticket? Those that show a positive sign to ‘illegal drugs’ are arrested and criminally charged. Simple. Make it clear well in advance that those caught for breaking the law go on a national register. Why shouldn’t employers be able to better screen their employees’ behaviours or and health insurers be able to more accurately assess their customers? If you are clean there is zero to worry about.

If we want to create a culture of stopping drugs, we won’t do it by applying soft measures. Rave concerts are a captive audience where drugs are smuggled in often unsavory ways to escape detection. Make it clear that the swabs are mandatory and one of two things will happen; the attendance will only be enjoyed by those prepared to be clean or the rave concerts will end.

Some will argue there will be a risk that rave concerts will go underground but in the day and age of cyber technology, it won’t be hard to track such events going forward. Make the penalties for organizers failing to register and apply for such concerts punishable by jail terms and multi million dollar fines.

If we truly don’t like the law, then let’s change it. Let’s not have two tier judicial systems that openly favour dangerous behaviour because it infringes on someone’s subjective right to listen to a rave concert completely off their rocker. Maybe that is the test – make these kids recall 50% of the music that were played. One can be rest assured most of them didn’t hear a thing.

Motorcycling reduces stress

According to a Harley-Davidson funded UCLA study, motorcycling reduces stress. The report findings were:

  • Riding a motorcycle decreased hormonal biomarkers of stress (cortisol) by 28%

  • On average, riding a motorcycle for 20 minutes increased participants’ heart rates by 11% and adrenaline levels by 27% —similar to light exercise

  • Sensory focus was enhanced while riding a motorcycle versus driving a car, an effect also observed in experienced meditators versus non-meditators

  • Changes in study participants’ brain activity while riding suggested an increase in alertness similar to drinking a cup of coffee.

CM already knew the benefits. Nice to have them confirmed.