Importance of Research analysis to Investment projects

Importance of Research analysis to Investment projects
Investment projects by individuals, companies and trusts require constant research analysis and continuous monitoring to ensure they remain stable and make profits. A single mismanagement can cause the entire project to collapse. This is exactly the case heighted in the article Bailouts, Bad ventures Treelord cash which provides prove that proper and well researched decisions are the key factors in investment. The article leaves the reader believing in the arguments presented because it highlights a very systematic case of Central North Island Iwi. Though the company invested in multiple areas to counter any risk of collapsing, it failed to pay attention to the fact that the market forces are not stable considering it operates in a competitive environment. For instance, I mainly noted the poor decisions that the trust made on financing their projects. The trust concentrated sop much on gaining finances from financial institutions such as banks without considering interest rates and mode of payment. In addition, though the article portrays differently, I blame the crash of the trust to poor investment since the trust concentrates on investing multiple ventures such as land, recovery, hotel ownership and education of masses, instead of focusing fully on a few projects. According to the letter by Mr. Hall to the tribe, he admits that focusing on several projects makes it difficult to fully concentrate on any specific project. It is therefore correct to say that by concentrating on fewer sectors, the trust will be able to reduce the risk that is currently exposed to as well as have the ability to capture the entire team of trustees. After reading the article I also noted that though the trust has attained huge sums of money from bailouts and forestry claim it has also made multiple payments to carbon credits thus weakening stakeholders equity.
Fonterra tips bumper price, boosts fieldays by Andrea Fox Retrieved from boosts-Fieldays
The article on Fonterra milk saga is another indicator of how poor investment decisions can cause challenges to a stable market or to a company. The Fonterra has had many opportunities to focus on its market an improve the prices of its milk product to assist the company’s share holders but because most of the company concentration is purely on the challenges encountered in the previous years it leaves out possible risks that may exist in the next period or year. For instance, from the article it is clear that the company directors pay too much concentration on the possible risks of poor weather that may hinder milk production such as the possibility of the drought. Instead the company should concentrate on any future risks such as coming up competition that may affect milk prices. Though the economic benefit exist this year 2013-2014, it is factual that the company may not be able to make profits from the milk mainly because of the existence of the new market and the fact that the existence of new market and the that the farmers have encountered multiple challenges on milk production.
However, even though the article has highlighted several reasons behind the inability or the company to increase milk process. These are multiple laws do focus on the prices of consumer goods hence regulating possible increases. Therefore, the article if actually not correct to assume that the only reason the milk price is low in fieldays is because of the poor investment. There are multiple other reasons behind the low milk prices such as the different objectives of the company in charge of milk distribution and pricing, existing laws on goods pricing, and besides the need to attain a competitive advantage over other companies.
Reserve Bank sold $ 25 billion in April by Paul McBeth Retrieved from %E2%80%98scale-intervention-bd-140893
According to the article it is clear that the reserve bank in New Zealand had to take a quick measure to safe the country’s economy from the damages caused by an overvalued exchange rate. As indicated, the president of the reserve bank truly understands the consequences of overvaluing an exchange rate. Therefore, I strongly support the idea of the author that it is necessary for the reserve bank to take precautions to maintain the Official Cash Rate. The Official Cash Rate assists investors and the government to trade and maintain secure investment within a specific period of time but it is necessary to understand that the official cash rate can be revised in case the country detects an overvaluation like it is the case in New Zealand.
The author implies that overvaluing of the exchange rate depicts that the currency of the country is actually too high for it. I do support this because in New Zealand, the exports appear to be relatively expensive while the imports are cheaper. Increasing or selling part of the reserve of the government money the bank actually manages to correct the existing situation in the country of the locals tending to depress domestic demand and improve or advocate spending on imports. The article further indicates that the move by the reserve bank is prompt because there was evidence of overvaluation as indicated by the country GDP. In my opinion, this is further evidenced by the fact that the purchasing power in the country has changed over the past three years. Purchasing power change is indicated by goods being more expensive than they are supposed to be. Therefore, I do support the evidence provided by the article author that the Reserve Bank is justified in selling part of the reserve.
Waikato Bakery owner owed $280,000 in tax by Belinda Feek times/news/8733725/Waikato-bakery-owner-owed-280-000-in-tax
Tax evasion has become a very common crime over the years with the main reasons being the high tax rate, multiplicity of tax and besides administration inefficiency. This crime is not only noted in some states or in a specific group of persons, but instead it seems to affect people from different regions and different age blanket. This is best evidenced by the article by Feek Belinda who clearly discusses the tax evasion saga on Taumarunui Bakery. It is true that Ta ly the owner of multiple businesses and a great entrepreneur had been evading tax for many years. In several occasions we note that Ta Ly constantly withheld important information with an aim of evading tax such as the failure to disclose his business, employees or his income. According to the article, the main reasons as to why the investor relocated from his home, failed to give GST returns and made several other investing decisions was so that he can evade tax.
I do support the analysis that the investor Ta Ly and his wife were wrong for struggling so had to evade their taxes for a long period of time, but at the same time it is necessary to understand the reasons behind their actions. It is not right to stop at judging the 66 year old lady for making poor investment decision which inconstant with the law but instead we should analyze the causes, reasons and effects of her actions. Though the article strongly states that the lady might have been manipulated by her husband, we should not ignore the fact that she may have been facing other struggles that led her to taking this move. Therefore, the article should highlight and the author carry out further research on other possible causes of tax evasion such as tax raise and multiplicity of tax.
Vodafone NZ Loses More Customers Retrieved from nz-loses-more-customers-5444925
Investment decisions as earlier mentioned affect even the best of companies and individuals. This is the same case that is currently facing Vodafone New Zealand in the past annual year. After the company’s great purchase of Telstra Clear, it was expected that their will be sudden rise in the number of the company’s customer. However, this is not the case as shown by the article. I believe that the decline in the company’s customers is mainly as a result of their current purchase. Considering that the company operates in a highly competitive industry it was essential for them to consider the likely number of potential new customer before making the purchase of another customer. This is because most customers that have been using Vodafone services have a repackaged service meaning that they Telstra Clear hardly have their own personalized market.
Therefore, it is evidence that their multiple reasons behind the existing challenges in company and individual investment. However, the main challenges highly affect or relate to resources of capital before an investment, the level of research made before any investment decision can be made and finally the existing laws and policies involving any particular investment. It is therefore necessary to pay attention to all necessary aspects before any investment move can be made either by an individual or by a company to lower to the risk of shot and long term losses (Millar, 1999).
Millar, S. (1999). Managing organizations in New Zealand : Pearson Education New Zealand Limited
Feek, B. Waikato Bakery owner owed $280,000 in tax Retrieved from 000-in-tax
Fox, A. Fonterra tips bumper price, boosts fieldays Retrieved from boosts-Fieldays
McBeth, P. Reserve Bank sold $ 25 billion in April Retrieved from %E2%80%98scale-intervention-bd-140893
Smallman, B. Bailouts, bad ventures Treelord cash Retrieved from Treelord-cash
Vodafone NZ Loses More Customers Retrieved from nz-loses-more-customers-5444925