July 31, 2018

Banks These Days

Banks are being very short-sighted these days. Do they not understand banks role in society? Put simply, their role is to act as a conduit for doing business. Two pillars form the backbone of this role, and that is trust and relationships.

So what do banks do? They destroy trust and ignore relationships. What I'm talking about is the trend to move on-line, and to close branches. And branches that remain are becoming automated. What the bank execs are doing is making the mistake of positioning money as a generic product. If you've built relationships over someone's whole life, why would you then turn around and say to that person, in effect, go away and deal with a robot?  It's barmy.

Any bank that takes the time to put the human touch back in, will be quids in I reckon (note the pun, hah).

Lydia Ko: Where She Went Wrong

I'm a big fan of former world number one golfer, Lydia Ko. Former number one, and that title really rankles with me as it needn't have been so. She could have sat at the top of the world for years, and when I say years I mean a decade or more. But she blew it and I'll tell you why. She blew it as she and her parent managers were very naive.

Now what I'm about to say may sound racist. It isn't but the more sensitive out there may not want to read any further as you delicate flowers may need a lie down afterwards.

Right here goes. Lydia Ko has been very naive. How so? She engaged coaches that also look after her direct competitors. Up to that point she was looking good. Everything about her game was pretty strong. She got onto the green efficiently then drilled that putt. Drive for show, putt for dough.

Why is using coaches that also help direct competitors such a big issue? The answer is pretty simple. She's representing little New Zealand. NZ is a small country of only 4.5 million people that sits isolated and alone. No-one gets up in the morning to ask themselves what NZ thinks regarding anything. And to make matters worse, they're just a bit too good at a lot of things, like sport for instance. The clincher is that small NZ represents a tiny media market.

To be blunt about it; there are 100 reasons why NZ can be discounted and a few reasons why it should be counted and all of those reasons would be put forward by NZ. If this offends Kiwis, get over it, as it happens to be the fact of the matter.

Note that what I'm talking about is not a conscious scuppering of Lydia Ko's career. No, it is more likely unconscious bias. Think like this; if you have four people to work with, what is better. four inside the top 30 or three outside the top 20 and one at world number one? If you can't work that one out then you should never be in business. It is far better for the coach to have four in the top rank and fighting over one another to get to number one. It is certainly far more financially rewarding.

Why would Ms Ko choose such a disadvantage scenario? This is where you'll think I'm being racist: she forgot who she was representing. Or her parents forgot. They likely think they're Korean. In fact I'd be staggered if they didn't think that. But that's not who they represent. If they were representing Korea, there would be a strong incentive on the part of coaches to keep her at the top. The pay-off would be immense.

But with a NZ flag on her back, Lydia Ko does not bring big numbers with her. Any Kiwi out there on the world stage has to understand; they like you turning up and competing but they don't like you winning. If a judge or referee makes the decision then it can often go against you, so you have to put the result beyond doubt. In basketball terms I say you have to be better by 10 to win by two.

What is the answer for Lydia Ko? She has to ditch whatever game they've got her playing and go back to basics. Get the job done, and if that's boring then so be it. Bore the pants off everyone and win. Only use coaches that represent her, and no-one else. And you could add overall brand management to that as well. Any apparent conflict of interest and it must be ceased immediately, there can be no compromise.

July 28, 2018

Smiths City Group (NZX:SCY)

I am a shareholder in Smiths City Group, the New Zealand Stock Exchange listed retailer. It is a long established business that has had its ups and downs over the years, but generally it could be relied on to return a reasonable dividend. That changed recently with the suspension of a dividend off the back of reported losses. What's going on over at Smiths City?

I'm not happy with the direction the company is taking and I won't be changing my mind on that opinion any time soon. That's because it's been downhill for a while, at least 10 years or possibly longer. I put this down to one simple factor: they do not know what they are doing.

Harsh you might say. Possibly, but reading their latest Annual Report prompted me to make this post. The report, replete with typo's, has a schizophrenic feel to it; on the one hand talking about its 100 years in business and the next minute about all things fresh and new. The problem with the company is it has moved away from what it was good at to riskier business that it has never been good at. Don't they realise this and why go toward an area of business they've demonstrably failed at in the past?

If we look at Smiths City from the old days; it was a boring business that looked after the locals. They sold trade tools, hardware, appliances and some home furnishings. Included in that list was the auctioning and trading in secondhand goods. They were actually quite good at all this and Smiths was always the place for a bargain. What was Smiths not? They were not trendy, or fashionable, or up-market. Their brand is irrevocably linked to trade, blokes, bargain hunters. That's it.

Now what are they doing? Investing heavily in their on-line presence, and store fit-out, and overall branding trying to impress on customers that they are now good looking. Right, good luck with that one.

Much earlier they got rid of their hardware, a steady earner, I've lost count of the number of times over the years that I've been in Smiths amongst the tools to discover a father with his child buying tools for the first day on the job as an apprentice. Smiths has lost that loyalty amongst customers and is chasing dreams in Auckland, a notably fickle market, where Smiths can only be seen as dead naff.

Then they'd bought the Wellington business of LV Martin, a local appliance retailer, and re-branded it Smiths City. Do they not understand that Smiths is generally openly laughed at in Wellington while LV Martin is loved? Yes, Smiths are that stupid.

On-line presence is really not that important for Smiths. They used to specialise in locations where the locals have few options, buying online means waiting days or even weeks and when it arrives it will be damaged. Or just go down to the Smiths store and Bob's your uncle. This store does not have to be flash. So what do they do? They spend on flash fit-out everywhere.

The problem they're faced with is the amount of money required to prove they're now sexy. This is way out of proportion to what they'll ever make from actually being sexy, presuming they can actually reach that goal.

What they should be doing is rather simple. Remember what they're good at, and do that often. At the moment they've forgotten about it. Then add bolt-on acquisitions that are aligned and don't spend outrageously trying to tart things up. I'm thinking farm supplies, trade tools, builders supplies, maybe some agencies on valuable imported lines and so on. And get back to secondhand and even auctions to boot. Business in Auckland and everything stylish is a mirage.

July 27, 2018

NZ Salmon could be the Answer for California

Evidently chinook salmon are extinct in northern California, but New Zealand could hold the answer to repopulating the region.

Canterbury NZ rivers are the only place in the world where salmon, descended from the right part of California, still thrive.

Read about it here:

https://www.stuff.co.nz/environment/103154846/rakaia-salmon-dance-into-native-american-hearts

https://www.stuff.co.nz/environment/105731111/nz-link-to-salmon-wiped-out-in-california-70-years-ago

Readership

The following are the countries that have been reading my blog over the last month, ranked in order of number of visits:

United States
China
Russia
Germany
New Zealand
France
Czechia
United Kingdom
Brazil
Australia

No interesting places make the list. Places such as Sweden, Morocco. Canada, Vietnam, Mexico used to be regulars. I wonder what happened to them?

July 26, 2018

Serena Williams

Women's tennis star Serena Williams has been in the news of late. She had a baby, good for her, then attempted a comeback but lost the 2018 Wimbledon final in what can only be described as a flop. She performed very poorly, almost laughably.

Then most recently, she's complained about the number of 'random' tests she has been subjected to. Implied in her comments is that random surely means even distribution of tests. Right? Well no, that's not what random means at all. Random just means that, random. Take a single dice. If I throw it and get a six, that's random. If I throw it again and get six, then again six. Three in a row, is that fixed or am I being set up? No, it's random. See? This is the fallacy in Williams complaint. She's talking nonsense in other words.

I will add that while she has clearly been the best female tennis player recently, that does not mean she is the best of all time. There is too much about her game that lacks finesse for that to be the case. This lack of skill was cruelly exposed in that Wimbledon match. What should be questioned is why she was seeded at all. If she had been entered correctly, the debacle that was the final would have been avoided as Williams would have been knocked out. 

Someone will say, what do you know about tennis? My answer would be, about as much as you can write on the back of a postage stamp with a builders pencil, that's how much. But I can comment on skill and sportsmanship. Williams has spent her whole career overpowering her opponents, not beating them with craft. That much is obvious. But then when she wins she is often not that generous to her opponent, it's often about her alone, she's a classic narcissist. When she loses it's even worse, then she often damns her opponent with faint praise. It's all very unbecoming and I prefer to take no notice of her. I would not pay to watch her. In fact, unless it was free and just down the road, I'd prefer to not watch her at all, that's how unpalatable I find her attitude. And I think I'm not alone, just that few are brave enough to say it. 

Want to know who to emulate? Watch Roger Federer and Rafael Nadal. What great sportsmen both of them.

What of Williams then? Well she's not even equalled Margaret Court's record yet. And Court also won three majors as a mother. Evonne Goolagong was back to world number one 12 months after having her first child. Kim Clijsters equalled Court's record of three majors as a mother. That means there is a long way to go for Williams, to be ranked alongside Court she has to win at least one major as a mother, two to exceed the existing major winning record. But I for one will not take any notice if she does beat Court, unless of course she has an attitude transplant and grows up. 

And one last thing; Venus Williams, the sister and also a great athlete in her own right. She's an absolute credit, a wonderful person, which just goes to show, poor sportsmanship does not run in the family.

July 24, 2018

New Zealand Regional Party

There have been a few attempts to get a purely New Zealand regional political party off the ground going back to the 1970's. Of course there was the provincial government era which was disbanded (Christchurch is still looking for a use for its Provincial Council Buildings.) but since then NZ has been a relatively harmonious one size fits all type of place.

The main reason regional states were scrapped was due to population. In its early days, NZ wasn't as successful as had been hoped. In the end the capital was centred on Wellington (moved from Auckland) and NZ became one whole. The NZ Legislative Assembly (equivalent to the House of Lords) was then removed in the 1940's, leaving an empty house inside NZ's Parliament. All good fun, a unicameral legislature, laws are enacted fast.

But I think the time has come for regional interests to push for a better deal. That's because Auckland is getting everything and the regions are being repeatedly screwed over. And the modern electoral system NZ uses allows for this kind of voice.

Consider the recent protest on the West Coast, https://www.stuff.co.nz/national/105666228/protest-against-mining-ban-on-doc-land-as-last-rail-road-bridge-in-new-zealand-closes The government must have thought the opening of a bridge was reason for celebration, instead they got a poke in the eye with a sharp stick. That's because the Greens are the tail wagging the (Labour/NZ First) dog and want to turn the West Coast into a depopulated wasteland where nothing happens apart from German backpackers coming through to crap on their front lawns. I kid you not.

Call this party something useful like the Country Party, or Heartland Party. Its function would be as power broker, getting the best deal for the regions in return for backing the government of the day. An argument justifying this type of negotiation would be to look at export revenue from the regions compared to the whole of the country including urban areas. What proportion of NZ's total export revenue comes from the regions? In return the regions should get a slice of the pie. Instead what happens is the regions make the money and then have their tax dollars spent on building roads in Auckland. This has to stop.

Correcting the imbalance would see the regions grow as services would be made available. Employment follows. NZ has no singular voice promoting regional interests. It needs to find one.

July 23, 2018

Royal Family and the Line of Succession

My most successful blog post by a country mile is where I reported the claims of Simon Dorante-Day, an ex-pat Englishman now living in Australia, that he is the first son of Prince Charles and his now second wife, Camilla (I'm not going to use their titles, Duke and Duchess of this and that, simply because it's bloated).

Read this blog post here >> http://kenhorlor.blogspot.com/2016/04/did-prince-charles-and-camilla-have.html

I'll be the first to say that this post was not the work of literary genius. Nor is it the work of august constitutional thinking. But it works. Why that is I have no idea. At times this one post can go ballistic, Russia, US, Britain. Everyone seems to want to know about this story.

Now, of course, I have no idea whether Mr Dorante-Day's claims are true. But I have been in touch with him and what I did find out is that he's just a regular bloke. Please understand that when you do get a blog that is as widely read as mine, you will find that it attracts some flakes. That and the downright deceitful and dishonest. Or they're just peddling something, which I'm not totally opposed to, just tell me you have an agenda.

If you look at photo's of Mr Dorante-Day, and check photos of Camilla at the same age, well, they look like peas in a pod. There is that. And Mr Dorante-Day comments that he's been the subject of intense police scrutiny for some time. If a member of the Royal Family is anywhere near where he lives, he gets his house turned over. Why? He's not a danger to anyone. Makes you think, eh.

Here's the idea; why are the Royal Family not subjected to DNA tests that are independently retrieved and analysed? They could then be publicly available for the wider scientific community to inspect. These tests could be compulsory for anyone in the top 10 of the line of succession, and voluntary below that. If the DNA cannot confirm the right to rule, then the person would be disqualified. Other than that they may keep titles and such, but not be in the line of succession.

Think about this some more; the science exists. Why not use it? And do it retrospectively, as of now. Charles must be of Elizabeth and Philip, William and Harry must be of Charles and Diana; George, Charlotte and Louis of William and Catherine. Any break and the line is broken and you move to the next line, and in this case it would be to Andrew and Sarah, through to Beatrice. You could find that Beatrice is the rightful heir. No I'm not kidding.

And to plug my latest novel, Dana Point out now, it does have this kind of idea in it. Everyone is subject to biochemical ranking at birth or at their assimilation into recognised society. This process also involves the curing of all disease, so there is a bonus. If someone is going to rule or be the elite by right of birth, shouldn't we be satisfied that they're qualified?

July 21, 2018

Why Electric Cars Are No Good

Forget Elon Musk. Ignore the hype around battery powered electric cars. An electric battery powered automobile is a poor option at any price and I'll tell you why.

But first, before doing that let's consider the mineral fuel burning internal combustion engine powered car. It is brilliant. Henry Ford was onto something when he mastered its mass production and brought freedom to planet Earth. Yes, freedom. Suddenly, the average Joe or Janet could go anywhere and often did. In a matter of minutes you can put enough energy into a car to get you clear across the country. That's a lot of energy.

And cars have got better over time. So good in fact they're now five star hotels on wheels. I'm surprised they can't perform minor medical procedures on the occupants as they drive along, that's how good they are. Running out of fuel is rarely a risk as, wait for it, there are filling stations everywhere and the fuel itself is plentiful and cheap. The alternatives are also pretty cheap whether that be bio-fuels or coal to oil, or even coal gas. You get the idea.

Now along comes the so-called planet friendly option. The battery powered electric vehicle. It's not new in fact, the option has been explored time and again and it always fails. It will fail now, things haven't changed that much.

First, let's consider the battery itself. It consumes valuable minerals that are hard to mine and places them in a box. The battery then wears out pretty fast. Compared to a gasoline powered car, that's very fast. Batteries lose their get up and go. And then they die. When they die the battery has to be recycled, and the car owner has to buy a replacement or throw the car away. Do you want to throw your battery powered car away after 5-6 years?

Second, the battery is a store of energy like the fuel tank on its competitor. But it's a poor store of energy; batteries are fast to discharge and slow to charge. With gasoline it's the other way around. And batteries get drained fast, faster than a tank of gas. So, power to weight, rolling resistance (wet roads and icy conditions), wind and so on are big factors in how range is affected. Then when you run out of juice, that first problem kicks you in the butt. Oh dear. It's like travelling back to the days of horse and cart, where travellers had to stop at an Inn to refresh the horses, often staying overnight. Do we want to go back to that?

Third, infrastructure. How many charging points are out there and how long will it take to wait for a charging plug to become vacant? At a petrol station the queue may last a few minutes. Imagine the length of queue at electric charging points. Right now that is not an issue as so few cars are electric. But when the car fleet gets to as little as 5% of all cars, watch the road rage. It's going to be incredible.

Fourth, what do you do with a stranded battery vehicle? With a gasoline powered vehicle, you simply hitch or walk to the nearest station, buy a jerry can, fill it up, then go back to the car and pour in the gas. Voilà, you're back going again. With a battery powered car if you have no generator back-up you'd have to get a car transporter costing hundreds of dollars. An expensive mistake running out of juice that one.

Fifth, what is the resale value on that battery powered car?

Sixth,  have you had enough already?

What may work are hybrids and plugin hybrids. Or even electric cars with back-up generators on board, used solely to boost range. But purely electric is a fad pure and simple.

What are the advantages of electric? Well, as someone who has worked with electric powered equipment all his adult life, electric power provides more grunt. Lots of it. In industrial settings electric is superior. But you never want to rely on batteries as they're a dud. Trust me. So taking that into consideration I can see inner city commercial vehicles being electric as they often are now anyway. And electric is very useful in warehousing, fork hoists are often battery powered as you don't have to vent the enclosed spaces. It's all been thought of before.

And heavy trucks may be hybrid, but then why not just use rail? Construction vehicles like excavators are often hybrid these days, that's good too, but of course much industry runs on three phase power and has done so since Adam was a cowboy.

Basically what I'm saying is that anyone who tells you that battery powered electric automobiles are the way of the future is a snake oil salesman. It's as straightforward as that.

July 19, 2018

Dana Point - The Latest Novel from Ken Horlor

My third novel has now been released. It's a science fiction story, and the first in a series. What we learn is we are not alone in the Universe and that there has been regular contact with aliens. Revealed is the origins of civilization on Earth and some of the science enabling long distance space travel.

It's also a personal story: On the run from the authorities, Augustus flees his place of refuge as it is about to be destroyed. Now in need of fuel, he heads to Earth with his only son. Augustus expects to find the Roman Empire when he gets there, only to discover it's now 2016 and the Romans aren't around anymore. 

To buy a paperback copy please follow this link: https://www.amazon.com/gp/product/1723249610
Kindle: https://www.amazon.com/dp/B07FP5DLJ1/ref=asap_bc?ie=UTF8

Dana Point cover:















July 16, 2018

Elon Musk - Again

Elon Musk has stoked a Twitter war by calling one of the cave rescuers in Thailand names. What he said of the rescue worker is a four letter word starting with P and ending with O.

Can we please just make Musk go away? He's turning into the caricatured bad guy. This submarine in the cave idea was never going to work and I doubt anyone involved in the rescue took it seriously.

But hang on, if he really is serious about going to Mars, then studying what went on in the cave could come in handy. People stuck in tight places, call it psychology mixed with engineering. Valuable lessons will have been learnt. Is this relevant to Musk? Well yes, if he can actually get off the ground with his Mars business, which I might add, I very much doubt.

The world is becoming a very strange place or am I just getting old?

July 15, 2018

All Things Trump

Okay, so Donald J. Trump is in Europe. A bit of a hit and miss affair.

Firstly, his manners. No, I don't think he needs to bow to the Queen. He is a head of state after all, he's not going to be subservient to another head of state. But his walking in front of her during an inspection of the guard? That's him being arrogant and putting himself centre stage. I'm sure he did it intentionally. The same applies to keeping the Queen waiting for 15 minutes. It's uncouth behaviour.

Then he showed his ignorance when appearing to not understand what the UK is, and that England is a separate country within the UK. This was revealed when The Sun newspaper interviewed him. It's cringe-worthy to be honest. In the interview he can be heard saying you don't hear England mentioned much these days, and when presented with an England football jersey, he remarks about it, saying something about how they do still have it. Wow, see it does still exist type of thing. A man this ignorant should not be in charge of anything. And I'm talking about even a merry-go-round.

But his call for NATO partners to ante up is correct I feel. Although the only thing is, he didn't originate the call. America has been calling for more spending from its partners for some time. Likewise the gas from Russia angle. It has long been pointed out that Russia can simply turn the gas off at any time and Germany would freeze.

But perhaps something President Trump is doing a little differently, is putting the EU and NATO together. I could be wrong, but I've never seen this done before by someone in his position. Yes, I do think they must be put alongside one another as the EU get to sell goods to the US off the back of the US paying to defend them. It's a tilted playing field in other words. The US has finally woken up.

But the real worry with President Trump is his erratic nature. That's where any defence of his actions begins to unravel. What course he sets seems to come down to how he feels when he wakes up in the morning. My concern is that the weaknesses inherent in the American governmental system are now being fully exposed. It could lead to a World War.

July 13, 2018

NZ Nurses Strike: Unrealistic Expectations

A good case can be made for certain industries being banned from taking strike action and the health sector is one of them. Other industries worth such a ban include key transportation hubs such as airports and the like. Whatever your view on the subject, the current strike by New Zealand nurses stands out as based on totally unrealistic expectations. The patients are left to suffer.

My advice: the District Health Boards should now remove their offer from the table, and send the union back to square one.

What is on the table from the DHB's? Reportedly a minimum 12.5% pay increase over 25 months. Bear in mind most employees could expect nothing more than 4 or 5% in that time frame. It's triple what anyone could expect. Generous in other words.

But there is more in play than just money and working conditions. The Labour party is owned by social workers, teachers and nurses. I suspect nurses are flexing their muscles within Labour. The coalition government cannot allow itself to be blackmailed. Stand firm on that last and highest offer. If the government fails to stand firm, they'll look weak and hand National an election victory in 2020. It's pretty simple. Most workers would love to get 12.5% over 25 months, so there's not going to be any sympathy for the union after this. There will be handy holdy of course, but resentment too, which voters will keep to themselves. The Labour/NZ First government cannot afford to buckle and have that resentment turn into a backlash against Labour.

July 12, 2018

World Cup 2018: England Out, Croatia Deserved Winners

The key term that comes to mind after watching the England - Croatia semi-final; it's not the size of dog in the fight, it's the size of fight in the dog.

What happened to England at half time? I'm talking about during the break itself. After the fifteen minute break England were late getting out onto the pitch and looked like stragglers walking from the dressing room. Croatia's body language spoke volumes, they were ready and looked like winners despite being down on the scoreboard.

And so from the start of the second half it just looked like Croatia finding a way to win, and never England looking to put the game beyond doubt.

I'd like to mention one other thing; even the first half looked a little disjointed and I'll tell you why. England are always too keen to give ground. The statistics here tell a lie I feel. What those statistics from the first half will show is that possession was even. But if you could find a figure that measures contests, it would show that Croatia was always prepared to fight for possession or territory. I'd wager it would look 70/30 Croatia, 30/70 England. That is, 70% Croatia showing more aggression in the contests, and 70% refusing to retreat (30% the other way around).

I believe both teams were tired, probably equally so. But cultural factors meant Croatia was going to win from the moment the second half started. And that cultural factor was England gave ground too easily, and were beaten as a result.

I'm sad about it as this was a golden opportunity for England to win a World Cup. It was the best opportunity they've had since 1966 at home. But now they can learn and move on, knowing they're good enough. Now they have to know they must always find a way to win, not just hope they'll win. There is a difference.

July 09, 2018

New Zealand Defence Spending

Proof of what I've been saying is available by examining the following graph. NZ's defence spending has been steadily shrinking and has now plummeted to a deplorable level. The last time NZ was at 2% of GDP was in 1992.


source: tradingeconomics.com

July 06, 2018

NZ Defence Policy Statement 2018

New Zealand has got more to talk about with the latest statement on its defence capability. To put it bluntly, NZ defence has gone bust. That's right, it has failed. NZ is now largely defenceless.

Read the latest statement here>> https://defence.govt.nz/assets/Uploads/Strategic-Defence-Policy-Statement-2018.pdf

To illustrate what I mean by bust, check out page 38/40, numbered items 250-254. In terms of Navy and Air Force, there is nothing left to speak of.

It's like this folks, NZ has 1.92 capable C130 Hercules for airlift. That's just under two planes out of the five total. They're so old they can almost never fly. Then of course, let's not forget NZ has no air strike capability. None. Zero.

Navy, one frigate working currently I think, what else? Two offshore patrol boats and a pumped up RORO. This to defend an area of huge size, check out the graphic on page 25/40 in the link. The territory is equivalent to the upper half of Africa, all of Europe and part of the Arctic. How could our country's leaders do such a bad job for so long? I know, put a bunch of bean counters in charge.

July 04, 2018

Azealia Banks - Anna Wintour

The very talented Azealia Banks has a new song out, Anna Wintour. See the video below...

July 01, 2018

Argentina and Portugal out of FIFA 2018

England's chances just got a whole lot better with both Argentina and Portugal crashing out of the World Cup. Now all they need is for Mexico to beat Brazil. Dare to dream England, oh, and make sure you beat Colombia.