*Even then, there is a safe guard (which seems to confirm Martin's comments that Winnick is a master in debt financing)*
Before I get carried away with Winnick, I want to rant about my biggest peeve (not a pet) with his financial dealings. What's the cost? Nowhere have I discovered just what these bonds cost us when he cuts *yet another* deal !
That the deals are necessary for him to maintain the financial health of the company must be accepted; that the deals may give leverage in allowing him to maintain control of the company must be accepted; but the "Hidden" areas of *Who* and *How Much* irk the heck out of me. We know Winnick has a zillion buddies in the bond business...we must assume he is greasing their palms with commissions for these deals (quite legitimately) as with all financial arrangements; but nowhere have I seen a disclosure on the costs and to whom these fees are paid...but then again, I may not know where to look. Anybody? Mr. Winnick? Would You want to be on this side of the fence with somebody operating Your investment and seeing all of this going on, unable to even speculate as to the accounting of costs for these deals? Absolutely Not. Neither do I.
Yes he is a master at financial arrangements, as well as a master of the Telecom field. This is not by coincidence, it is where the Big Bucks are, and this would attract skill of his calibre. It is this which makes others imitate him with their MNO startups.
But as I said earlier, I trust nobody, and the more skilled they are, the closer they need to be watched. Only because of his immense position in GX do I trust him with the company...or I would not invest it. Make no mistake he is good, but please recognize how closely we need to watch these "small" details....he would only have admiration for this assessment by an investor, I believe. He might laugh, as we have little to leverage against the practical side of these transactions, but if anybody ever has the opportunity at the Shareholder's Meeting to ask such a question, I would like to watch as he heard the question.
Long term shareholder value is one thing, but as the little old lady said two years ago, "Mr. Winnick, in the long term we shall all be dead".
Martin Thomas |
