7/31/2012

M&A will not help selling snake oil



Many financial freaks and fraudsters tried to pass themselves as financial genius by scrambling for more M&A to grow their sick companies. They tried to acquire or merge with other presumingly better managed and viable companies by using their cash hoards. In the short term it looks good on paper that the company is so much bigger and with more products or services available, and more sources of income.

The problem is that what is real is real and what is snake oil is still snake oil. Companies selling snake oil will see their customer base dwindle and their revenue falling daily. The customers either got fed up with the snake oil and refuse to buy anymore, or may have been poisoned and are dying or dead. Without a broad base of customers to support a company, to buy and consume its products and services, no amount of gimmicks in M&A will work or will last. What is the point of a mammoth company through M&As, offering more snake oil when there is no customer?

A rotten company selling snake oil is still a rotten company selling snake oil and will lose its customers in no time. Customers can be cheated once, twice but not thrice. Those who continue to be cheated will also ended up in the critically ill list.

Companies have to be real and sell the real stuff, the good stuff, the stuff that are of real values to their customers. Cheating customers with snake oil is like cheating themselves. The company will be run to the ground. The only survival, unfortunately, will be the snake oil sellers that come and go, peddling their snake oil as the panacea to all company ills. How long can snake oil sellers hold their bluff? It depends on the real owners of the company, the employers. If the employers are dafter than the snake oil sellers and willingly be deceived by the snake oil sellers, the bluff could be sustained for a long time as the daft owners would not know that they are being duped. By the time they worked up it would be too late.

Think Barclay, JP Morgan, think New York Stock Exchange, and many more. And when nothing is done to flush out a rotten system and getting rid of the snake oil, no amount of feedback and window dressing can help.

3 comments:

Anonymous said...

For some years I have always maintained that the Western Demoncracies headed by the Evil Empire,USA have been run and controlled by not just crooks, rogues or scoundrels but by extradinary super crooks, rogues and scoundrels in both the public and private sectors. The best brains from their best universities like Harvard, Yale, New york University and Princeton are recruited and they all become essential cohort members of the evil system of Snake Oil sellers and believe me they are essentially controlled by the universal zionism of the deceptive Jewish community. These crooks and scoundrels are closely interconnected in between the government and the private sectors and ultimately all are controlled by Jewish leaders who run the shots in either War or Peace and whose hands are seen in the affairs and direction of the sinister departments of the CIA and The Pentagon.

These crooks and scoundrels in their system of evil demoncracies are intertwined with their wicked design of world domination and hegemony in all fields of human activities encompassing territorial conquest, political design to stir up trouble in countries which do not accept Western or USA dictates, regime change of governments disagreeable to the Evil Empire, USA , financial and economic control and manipulation of every country in the world.

Somehow their evil design in the financial and economic matters have backfired so that their economy and finance are now in shatters. But however, they blame their failures on Third World or developing countries especially on China, for saving too much. They conveniently choose to forget that they have been bankrupted by their warmongering political and military masters via the CIA and The Pentagon for overspending beyond their means in overseas war ventures and in trying to maintain the more than one thousand military bases around the world for world domination. Now their busiest and most vibrant industry is the military war industry which churns out endless weapons of all descriptions to sell to warring countries which they have evily created for that sinister design of selling weapons to reap benefits worth thousands of billions of dollars. The Evil Empire, USA must stir up more troubles and create more wars in Third World countries in order to keep their war industries going.
Third World countries should not be gullible and allow US and the West to sow suspicion and seeds of dissension among themselves and goaded by them to go to war.

Southernglory1

Matilah_Singapura said...

Some Mergers and Acquisitions do work, a few work brilliantly - especially when they get rid of non performing assets, strangling liabilities, and inefficient systems - especially the labour intensive ones.

Any deal has to make sense for it to be "successful". M&A is no different. Granted, M&A 's can also be used to milk and bilk the unsuspecting of their cash. Lawyers, for eg, LOVE M&As. Why not? Bankers also like it - especially if there is CREDIT involved, and there usually is.

Anyway, more M &,A to come. If I had a hi tech startup, I'd be hoping for Microsoft, Google or yahoo to acquire me, because then I can move to Sentosa Cove :)

Anonymous said...

SGX wants to promote stock investment in the heartland. Before doing that, they better make the playing field level, get rid of computer tradings or else it is criminal if the heartlanders lose all their hardearned money.

Stock markets today are like casinos with big boys using computers to take advantage of small investors. SGX, please do the necessary and due diligence.