The Trophy winner says nothing to know one, as he knows the gratification and reward of the surprise at the end of the day will be much greater.
Good metaphor, but after seeing Dustin Hoffman in Wag the Dog, I gained a new understanding of the importance of story telling in many people's lives. As the Hollywood director brought in to script the White House coverup of the president's sexual abuses, his stories are so enmeshed with the present it's hard to imagine his living without them. Hoffman's character can't finish a sentence without, "You shoudda been on the set when. . ." or "This ain't nothing. . . that time in. . ." or "Talk about big, what about that time when . ." and on and on, story building on story. The biggest tragedy in the end --- well, I won't spoil it.
If nothing else, seeing the movie will make you smile the next time you see a fisherman, hands spread wide, telling about the one that got away.
Now, to justify this terribly off-topic post, here's an article from FT on Swisscom, with whom NN has contracts:
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THURSDAY JULY 23 1998ÿÿEuropeÿ
TELECOMS: Swisscom sets out plans for IPO
By William Hall in Zurich
Swisscom, Switzerland's state-owned telephone company, on Wednesday gave analysts their first peek at what could be Europe's biggest initial public offering this year. What was on offer was typically Swiss: a methodical presentation by conservative managers more interested in fine detail than flights of fancy about where Swisscom might be in 10 years.
Tony Reis, 56, Swisscom's chief executive, is not as charismatic as Deutsche Telekom's Ron Sommer. But Switzerland has an impressive record in building successful multinationals. Swisscom, according to one of its advisers, could turn out to be one of those companies that "under-sells itself but over-delivers".
Early estimates suggest the flotation of up to 49 per cent of Swisscom could raise about SFr10bn ($6.5bn). This would be roughly half as big as the $13.3bn Deutsche Telekom IPO in 1996 and close to France Telecom's $7.2bn IPO last year. France Telecom announced this week plans for another $6bn issue, showing there are plenty of European telecoms companies jostling for investors' attention.
Mr Reis, an ex-IBM manager, believes he can deliver "sustainable increases in turnover, cash flow and profit". Swisscom reported a net loss of SFr415m in 1997 after taking a SFr1.7bn restructuring charge. However, its operating margins, of about 40 per cent, are close to those of its European peers, and its 3.3 per cent growth in revenues, to SFr9.8bn, shows it can still grow its business in the face of falling prices and increased competition.
Growth in mobile telephony revenues - which have doubled over the past two years - more than offset the 3 per cent fall in fixed-line voice telephony. Less encouraging was the modest growth in data and multi- media services, which should be high-growth businesses, and the rapid rise in losses of international affiliates, from SFr103m in 1995 to SFr325m in 1997.
Switzerland, with 8m people, ranks 23rd in Europe, and is no larger than the US state of Maine. However, Swisscom ranks seventh in the world in terms of out-going international calls, has one of the world's most modern digital telephone networks, and is a leader in mobile telephony.
Its management has been drawn largely from the private sector, and some of its new competitors are having serious teething troubles.
Sunrise, backed by British Telecom and TeleDanmark, has lost its first chief executive and failed to win one of the two new mobile phone licences. It is challenging the decision, but this is delaying the start of competition in the highly lucrative mobile phone market, which is by far the most profitable part of Swisscom's business.
Longer term, the combination of new competitors, falling prices and lost market share means Swisscom will do well to continue growing its revenues by 3 per cent a year. But if it can cut its costs by as much as some analysts expect, it should be able to increase its earnings by a double-digit rate over the next three to four years.
The final reason why Swisscom is hoping for a premium rating is that Swiss investors have a history of equity ownership.
While BT and Deutsche Telekom had to educate investors about the advantages of owning shares, the Swiss are more attuned to the risks and rewards of equity investment. About 20 per cent of Swiss adults own shares, compared with 5 per cent or less in the UK and Germany before their telecoms privatisations.
But Swisscom is not taking its domestic investor base for granted. Each of its 3.25m customers will receive details of the flotation, and, unlike previous Swiss IPOs, every retail investor will be treated the same. There will be no preferential treatment for customers of one bank over another, as has traditionally been the case.
Swisscom, which is also seeking a New York Stock Exchange listing, expects to raise SFr2.8bn of new equity on top of the money raised by the sale of the government's stake. This will still leave it more highly geared than many competitors.
But Swisscom's strong cash flow, double-digit earnings growth and a dividend yield that could come close to matching the 3.1 per cent offered by Swiss government bonds should attract a strong stock market following in the short term.
The longer-term outlook, however, is more hazy. Allen Pyne, director of Schema, a London telecoms consultancy, notes that it is easy for former state-owned telecoms monopolies to report substantial profit increases in the first five to six years. After that, they have to prove they can compete with more nimble-footed rivals.
Swisscom, with its relatively small domestic market, will have to expand overseas if it is to continue to grow. Its international strategy is still in its infancy and remains largely untested.
Mr Reis may have to upgrade his presentational skills if he is to convince international investors that Swisscom is a good long-term investment.
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Swisscom in MainStreet News:
mainstreetxpress.com
Later ---
Pat |
