United Airlines Flight 811 essays

Joined Airlines Flight 811 articles Joined Airlines Flight 811: Sudden Explosive Decompression On February 24, 1989, a United Airlines Boeing 747-122 (B-747), withdrew Honolulu, Hawaii (HNL) destined for Sydney, Australia. While on move out the airplane group and travelers heard a boisterous blast, followed in a split second by lost lodge pressurization. A traveler, additionally an economically authorized pilot, records of the occurrence by expressing that the lodge hazed over for what appeared to be around fifteen seconds.. At that stage serious trouble was rising to the surface. (Rutherford, 2). What this traveler was portraying was the airplanes fast depressurization process because of the passing of a load entryway in flight. Joined Airlines Flight 811 incorporated a team of three, fifteen airline stewards, and 300 and thirty seven travelers (nine of which lost their lives on this flight). The flight had left HNL door ten at 0133 Honolulu Standard Time (HST), three minutes after proposed takeoff time. The subsequent official expressed that all lodge and load entryway cautioning lights were out before the planes takeoff from the door. After departure, the skipper mentioned a deviation to one side obviously for tempest shirking. He left the attach safety belt sign on. While moving between 22,000 feet and 23,000 feet at 300 bunches demonstrated velocity, the B-747 started to encounter an uncommon vibration (Rutherford, 2). This vibration was trailed by a noisy bang, and a blast. This blast was because of the forward lower flap payload entryway isolating in flight and making broad harm the fuselage and lodge structure neighboring the entryway. The group had wore their breathing devices and found there was no oxygen accessible. They accepted the travelers veils had conveyed naturally. The commander started a quick left 180 degree turn, and plummeted toward HNL. A crisis was announced with approach control, and 7700 ... <!

Night :: essays research papers

Night by Elie Wiesel â€Å"Hitler won’t have the option to do us any damage, regardless of whether he needs to.† So starts the book, Night, by Elie Wiesel a personal work about Elie’s battle to endure the Holocaust while living at numerous inhumane imprisonments. Starting at age 15, Elie Wiesel moves from a youngster scrutinizing the records of German disdain, to turning into an observer of numerous obtuse demonstrations brought upon individuals. Elie Wiesel’s book, Night, depicts examples of obtuse follows up on the Jews at Berkenau-Auswitz, at Buna, and on the walk to Gleiwitz.      Upon landing in Berkenau-Auswitz, the people were isolated. It was here that Elie saw his mom and sisters once and for all. With the inform concerning another detainee, Elie and Mr. Wiesel, lied about both their ages and occupations so as to get into a similar line of men. â€Å"The rod moved unremittingly now and then to one side, here and there to the left.† (page 29) Happy to be with his dad, Elie still didn't have the foggiest idea whether he was in line for the jail or the crematory. The line walked up toward the flames, he could see little youngsters and infants being hurled into the fire. The line proceeded onward past another pit where grown-ups were being scorched. Subsequent to seeing these grievous occasions, Elie could not rest anymore. He was unable to accept this was going on and no one was successfully stop it.  â â â â In the wake of enduring the principal inhumane imprisonment, Elie and Mr. Wiesel were sent to Buna, a work camp. At Buna an Overlap (a jail watch) was tormented for subverting a force station. A little youngster under him, called a Pipel, was additionally to be tormented for data on the Overlap’s accessories. The Pipel was hung in light of the fact that his he would not uncover the Overlap’s associates. â€Å"For in excess of a 30 minutes, he remained there battling among life and passing, kicking the bucket in moderate misery under our eyes.†(page 62). As Elie stood and watched he heard different detainees more than once ask, â€Å"Where is God?†      A third barbarous act the Nazi’s did was make the detainees run almost 50 miles to Gleiwitz. They didn't let the detainees quit running for even a second or the individual would have been killed. Despite the fact that the detainees were not allowed to stop, the S.S. Watchmen were given numerous breaks so they were not worn out. A portion of the detainees went too gradually and they were stomped on by different detainees.

A well spent life brings a happy death Essay Example For Students

An all around consumed this existence brings a glad demise Essay Through rills, slopes, good and bad times. Through giggling, grins, tears and glares. For a long time, you have endure, For a long time, you keep on endeavoring. The pressure was apparent as the day progressed, Be that as it may, you figured out how to overcome it all around. A year passes by, and youre going to go. Farewell to us, and to the world HELLO. You just live once, so live it right. Make a decent attempt energetically. The 3 elements for the ideal life, Are that you learn, win and work day and night. Live a completely, satisfying and palatable day, Dont let any nitwit impede you. Try to achieve the impossible, go after the moon, Live as though your life is finishing soon. Youve got the opportunity to endeavor to do your most extreme best, What's more, toward the day's end, you can calmly rest. A rancher goes through hours to plant and harvest, His hard and all around went through day brings an upbeat rest. The good and bad times are simply one more factor, Simply live through life as your own sort of character. Dont let cruel words ever change your style, What's more, on the off chance that anything ever happens triple 7 is the number to dial. Simply grin at whatever may overload you, What's more, let nothing make you grimace. Life is a fantasy simply fantasize through everything, Do similarly as I state and you will never fall. Make every second count with each breath, for an all around went through this existence brings a cheerful passing.

Maxwell Boys School - Free Essay Example

Maxwell School ( Sekolah Menengah Kebangsaan Maxwell ) is a semi-control for boys ( and female students in form 6 ) and the oldest school in the north of Kuala Lumpur as well as one of the oldest in Kuala Lumpur and Malaysia. A student of the school is known as a Maxwellian. Maxwell School is well known for its high achievement in education and other activities in secondary schools level. Maxwell School is famous for its form 6 and has always produced among the top STPM results in Kuala Lumpur. It is considered as one of the best schools in Kuala Lumpur for its form 6 education. The History of the Maxwell School Established in 1917, it opened its doors to 110 students and five teaching staff on 1 June 1922. During its pre-war days, it functioned as a feeder school (primary school) to the Victoria Institution. By 1933, the school was shut down to public due to the recession but was opened as a private school from 1934 to 1938. It was then given to the Trade School for their use. Du ring the Japanese Occupation, it was used as a camp for the dreaded Japanese Kempeitai. After the war, the school was used as a hostel by the newly formed Technical College until 1953, when, in September, the school was re-opened as Malayas first Modern Secondary School. Today, the Maxwell School is still housed in the same building and has remained a secondary school ever since. School Headmasters and Headmistresses 1917 1918 War Period 1919 1922 Establishment Period 1922 1925 Montague B. Brockwell 1925 1928 C. N. Beamish Aug 1928 Harold Ball 1928 1930 Agnes R. Cooke 1930 1930 M. Wheatley 1930 1933 C. W. Bloomfield 1933 1938 R. Thampipillay 1939 1941 Closed 1941 1945 War Period 1946 1953 Closed 1953 1954 William C. Cleine 1954 1956 Donald Priestley 1956 1957 Paul Chang 1957 1957 Razak Khan 1957 1961 Ong Choon Ghee 1961 1961 A. E. Navarasingam 1961 1968 Wong Ah Fatt 968 1979 P. Nadarajah 1979 1988 Victor Wong 1988 1990 Abdul Razak Mohammed 1990 1999 Ismail S ajad 1999 2001 Han Seng Kuang 2001 2006 Loy Liang Dee 2006 2006 Azmah BT Rajion 2006 2007 Datin Khairiah Abd Majid 2007 Prst Datin Zainab Bee Bte. Ismail [edit] European Headmistresses 1922 1923 Annie Grenier 1923 1924 J. H. Dennett 1924 1926 Edith L. Earnshaw 1926 1927 D. A. Peck 1927 1928 Helen D. Leith 1928 1929 Agnes R. Cooke 1929 1933 Nellie F. Careless [edit] School buildings The school originally consists of two blocks, the present day main block and the gymnasium block, which is now the library. The design and features of the two blocks is typical of the colonial era structures bearing some similarities with the Malayan Railway station and Sultan Abdul Saman buildings, both with Moorish designs. The school consists of a two – storey structure which was later extended to a block of solid masonry construction with arched openings along the corridors, typical of many of the school buildings that were built that time. There is a veranda on both sides of eac h storey ( main block ), high ceilings and broad stairways which depict typical colonial architecture. The Maxwell School is one of the very few schools in the nation that has not shifted and has remained in the original site from the very beginning itself. While the modern-day Ministry of Education has added many rectangular-shaped blocks to the school, the distinctive H shape of the main block is still one of the more interesting features of Kuala Lumpur. The structures that make up the Institution itself is a heritage of the nation. [edit] School song The schools first song was titled Disco Ut Serviam, written in 1954 by Mrs. A. V. Priestley, wife of the second post-war headmaster, Mr. Donald Priestly. The song was sung from 1954 until 1981. Service, not wealth or fame, From this our schools’ high aim, May we ne’er swerve, New boy and senior, Prefect and monitor, Eyes on the future, for learning we serve, And when in after years, we test in large spheres, Hand , brain and nerve, And fierce machinery, Commerce and industry, Science or policy, In all, we serve, So all our whole life through, The law which here we knew, We shall preserve, Heedless of selfish gain, May we with strength maintain, This, as our life’s refrain, Learning, we serve. In the early 1980s – when Mr. Victor Wong was headmaster – the late Mr. Leonard Wong was asked to compose a new school song. The lyrics was for the new song was written by Mrs. Soriah Abdullah and Mrs. G. Balakrishnan, with the music background provided by the latest Mr. Leonard Wong. Mara serentak, tuju kemasyhuran, Cabari dunia, capai kejayaan, Sumbangan bakti, mengharumkan Maxwell, Megah dan agung nama Maxwell. Tetap cekal, tempuhi rintangan, Buru cita penuh jiwa raga, Kegigihan satu amalan, Ikrar kita demi tujuan mulia. Mara serentak, tuju kemasyhuran, Cabari dunia, capai kejayaan, Sumbangan bakti, mengharumkan Maxwell, Megah dan agung nama Maxwell. edit] Student life What de fines Maxwell School as a unique institution is the experience its students gain outside the classroom. Maxwellians, as the students of the school call themselves, take pride in identifying themselves as a class of versatile students, both in and out the classroom. It is an unspoken rule that all freshman students are required to join at least one uniform body, take on an active role in one of the schools 50 clubs and to participate in a least one sport. That said, Maxwell School has a variety of clubs, uniformed bodies and sports that caters for all sort of interests. The student life in the Maxwell School often revolves around societies and clubs and sport teams, despite the fact that Maxwell School does not have proper sporting facilities. [edit] Rivalry As like many other older schools, the Maxwell School has a fair share of rivals. St. Johns Institution, is the schools traditional archrivals. This rivalry can be best observed during visits by Maxwellians to St. Johns Institu tion and vice versa. Setapak High School and the Methodist Boys School, Sentul can also be included in this list, stretching back to the mid 1950s. [edit] Traditions and heritage It is only normal for a school as old as Maxwell School to have its own heritage and traditions, ones that have stood the test of time. While many of the colonial-period traditions have slowly eroded over the years, some are still in existence and practised. The first one, is the passing of the School Captain badge from Captain to Captain each year. Two, is the sewing of the prefects uniform done by the school tailor, and not bought from a retail shop. Another one would be of the invitation by the Old Boys Association of the school to the School Captain to attend the annual Dinner Night of the Association. Furthermore, the uniformed groups uniform is worn on every Wednesday. [edit] Sports Maxwell School has a proud history of achievements in sports, having won many state, national and international ch ampionships throughout the past 50 years. Maxwell School currently participates in the Sentul zone at district level and in the MSSKL (Kuala Lumpur School Sports Council) tournament at the state level. Since its founding, the Maxwell School has won countless trophies and titles in football, hockey, athletics, cricket, sepak takraw and badminton. The highest achievement was made by the school football team in 1972, lead by Zainal Abidin Hassan, when the school emerged as runners up in the Singapore Lions Cup, a regional football event for secondary schools. Maxwell School has produced many famous Malaysian sportsmen including Zainal Abidin Hassan, E. C. Dutton (national goalkeeper) S. A. Azman (national tennis player) and many Malayan and national cricket players. Another outstanding sportsman of the 60s was Bashir Niamat Ali whose record time for the 100 yard sprint at the Selangor Combine School Athletics meet stood for many years. The heroes of Maxwell Schools sports achiev ements are certainly the coaches, teachers and senior students who had often spare time and effort of their own for the love of the school. [edit] House There are four sport houses in Maxwell School. Every year the sports houses compete against each other on sports day. The Maxwell School Sports Day has been held since 1955. The houses are named after the founders of the state. The current houses are: Thamboosamy (Red) Swettenham (green) Yap Ah Loy (Blue) Sulaiman (yellow) [edit] Prefects Maxwell School has one of the oldest prefects board in Malaysia and Southeast Asia. It was founded 1929. After the war, the Prefects Board was re-initiated and the first School Captain was S. A. Azman in 1954. He later became one of Malayas first national tennis players. Prefects represent the ideal Maxwellian, and the process of nomination for prefecture by teachers and senior students, training, elimination processes, a several month stint as a Temporary Prefect (a probationary term), and the ragging that invariably follows is a gruelling one, ensuring that only the cream of Maxwellian society is given the right to put on the Prefects badge. Maxwellian Prefects also must abide by a strict protocol and Code of Conduct. The motto for the Maxwell School Prefects Board is, Dedicated Prefects Towards Discipline [edit] School crest Mr. Donald Priestley undertook the liberty of designing the school crest himself in 1954. This crest has four colours – green, yellow, blue white, with each colour having its own meaning. The colour green represents religion. The colour yellow represents royalty. The colour blue represents age whilst the colour white represents youth. On this crest, the shield shows a tiger, an opened book, the school motto, a compass which supports the opened book and an arrow pointing down surrounded by 8 blue and white stripes. The opened book is actually the Book Of Knowledge and the tiger is The Burning Tiger. The compass symbolized the schoolâ₠¬â„¢s status as a modern secondary school, offering technical and vocational subjects at that period of time. The school motto – Disco Ut Serviam – is the Latin word for I Learn That I May Serve.

Plato s Views On The Philosophy Of Human Nature - 1984 Words

In this essay, I will debate two different stances on the philosophy of Human nature. The first philosophical position that I will evaluate comes from the perspective of the Athenian philosopher, Plato. First and foremost, Plato’s views integrate the idea of dualism. Dualism, in this regard, means that there is a clear separation of the immaterial substance (the mind) and the material substance (the body). Plato views the soul as the entity or part of us that has the ability to reason and allows us to be rational. Therefore, the soul and reason go hand in hand. The soul works and reasons best under conditions in which it is the furthest removed from the body as possible (Phaedo). Thus, Plato views the body as a hindrance to the mind and soul in the sense that the body and its connection to the phenomenal/physical world deceive the mind in the world of ideas (â€Å"Plato’s Republic†). Plato conveys this in one of his dialogues, in which Socrates says, â€Å"Then he will do this most perfectly who approaches the object with thought alone, without associating any sight with his thought, or dragging in any sense perception with his reasoning†¦ freeing himself†¦from the whole body, because the body confuses the soul and does not allow it to acquire truth and wisdom whenever it is associated with it† (â€Å"Notes on Plato’s Phaedo†). Thus, Plato deduces that the body, along with our physical senses (touch, smell, sight, sound, taste) is like a prison to the mind (â€Å"Plato’s Republic†). The betterShow MoreRelatedPersonal Philosophy : Al Farabi1684 Words   |  7 PagesAl Farabi’s philosophy was heavily influenced by Greek philosophy just like how western philosophy was influenced by Greek philosophy. Specifically, Aristotle, Plato, and Socrates were the main Greek influencers of Al Farabi. Al Farabi as well as Ibn Sina have been recognized as Peripatetics or rationalists. The best known Ara bic source for Al Farabi s political philosophy is his work titled The Virtuous City. In many of Al Farabi’s philosophical works the practical use of philosophy is a majorRead MoreConfucianism, Hinduism, Buddhism, And Platonism1045 Words   |  5 PagesEssay One Brian Munoz Philosophy 10/23/15 What Are We - What are we? In this essay, I’ll be comparing and contrasting the four views of human nature that we have studied so far – Confucianism, Hinduism, Buddhism, and Platonism – critically examining their similarities and differences. Also, I’ll be explaining which one I think provides the most plausible understanding of what we are. First, I will introduce each of the four views of human nature by defining them. Then, I will elaborate and thoroughlyRead MorePolitical Philosophy, By Steven Cahn1197 Words   |  5 PagesIn Steven Cahn s book, Political Philosophy, The Essential Texts, philosophers such as Socrates, Plato, Aristotle, Hobbes, Locke and Rousseau created the circumstances to enable the fundamental principals of philosophy and politics. These knowledgeable, astute and significant men have helped to achieve the structure of our past and present democracy as well as a plan of action for the rights and values that we as citizens can all relate to tod ay. They are grounded in their thinking and tied togetherRead MorePlato s Interpretation Of Utopia1630 Words   |  7 PagesPlato and Aristotle shared many differences despite also sharing a teacher student relationship. This essay will strive to establish their understandings of reason and the role reason plays in their comprehensions of politics, differentiating between the kinds of reason and politics produced as a result. Plato is regarded as the first writer of political philosophy while Aristotle is recognised as the first political scientist. Plato’s interpretation of Utopia is founded upon the existence of threeRead MoreWhat Is The Purpose Of Life?1619 Words   |  7 PagesPurpose Of Life? Probably the MVP of questions, What is the purpose of life?, Has come across all of mankinds thought s some time or another and for each individual, it is plausible that they pondered this topic on numerous occasions throughout their life s. Many people find solace in their religions, others look to the ancients and the stars, while some, just trust in nature. Maybe within all of these outlooks, you can find truths about the meaning of life, but is the meaning or purpose of lifeRead MoreSocrates And Aristotle s Life1491 Words   |  6 Pagesrather than upon mere survival. The earliest accounts of human history chronicle the struggle for survival against all odds. It is therefore remarkable that roughly 2400 years ago the question of virtue was raised, let alone contemplated at great length, forming a foundation upon which Western philosophers build to the present day. Socrates and Aristotle were two key individuals credited for their roles in the advent of Classical philosophy. Men in ancient Greece lived relatively privileged livesRead MoreThe And Nature Of The Ancients And The Stars1618 Words   |  7 PagesProbably the MVP of questions, What is the purpose of life?, has come across all human beings thought s some time or another and for each individual they most likely pondered this topic on many occasions throughout their life s. Many people find solace in their religions, others look to the ancients and the stars, while some just trust in nature. Maybe within all of these outlooks you can find truths about the meaning of life, but is the meaning or purpose of life the same for each individualRead MoreEssay on Boethius and Platos God1026 Words   |  5 PagesPlato was born in Athens, Greece around 427 B.C. He was always interested in politics, until he witnessed his mentor and teacher, Socrates, death. After learning of the callousness of politics, Plato changed his mind and eventually opened up The Academy, which is considered if not the first, on e of the first Universities. Students at the Academy studied many different fields of science, including biological and astronomical. The students also studied many other fields, such as math. Plato developedRead MoreA Holistic And Spiritual Treatment Essay1473 Words   |  6 Pagesby which nurses take care of patients as human beings. I believe that patients are best taken care of when nurses handle them in such a way that humans need to be taken care of: through a holistic and spiritual treatment. By rationalizing humanistic nursing theories with theories of human nature, such as dualism and existentialism, as well as perceiving man as an embodied spirit and a relational being, a more holistic approach is given to a patient as a human being. In the professional setting, knowingRead MoreThe Republic By Plato And The Prince By Machiavelli1617 Words   |  7 PagesAlthough written nearly two centuries apart, The Republic by Plato and The Prince by Machiavelli offer important views on political philosophies of rulers. Plato writes of a perfect society where status as ruler is naturally selected through innate abilities. These abilities are used to sustain the society, better it, and preserve it. Machiavelli writes of a society where anyone can be a prince; which for our purposes is a synonym for ruler, if they follow his instructions. These instructions are

Why I Write A Writing - 1513 Words

â€Å"Why I Write† Writing has never really been a passion I possess. I wouldn’t go as far to say I hate it, but, I wouldn’t want to say I love it either. For some, writing is a way to escape their own messed up worlds and creates a new, it’s exciting, adventures, and daring, but, to me, writing is such a tedious task that I as a person do not have the patience to withstand. I haven’t always disliked writing; I actually use to enjoy getting all my thoughts down on paper and coming out with my own little masterpiece my parents could hang on the fridge and boast about to their friends. The worst/best paper I ever had to write was in fifth grade; I had to describe my top three very best friends in five paragraphs or more, then let my elbow partner grade it on a scale from 1-6 ( six being the best.) I put my all into that paper; it was going to be my best paper yet. Getting organized to write a paper is the worst thing ever; the idea charts, the constant erasing, getting up repeatedly to sharpen my pencil. I remember writing this particular paper; I had just gotten to school and put my bag in my cubby hole. The first thing out of Mr. Leisch’s mouth (my teacher at the time) was, â€Å"today we are going to write for the entire day, we are falling behind in this subject compared to the other three classes and we need to practice.† As the rest of my peers groaned and bellyached I was thrilled, â€Å"today will be the day I write a six!† I told myself. As my teacher gave us our assignment and IShow MoreRelatedWhy I Write: The Art of Writing Essays1249 Words   |  5 Pagesin his essay â€Å"Why I write†, written in 1946 and published in London, addresses the reasons that made him become a writer and eventually sets four main general principles that are the main drive force for every piece of writing. â€Å"I write it b ecause there is some lie that I want to expose, some fact to which I want to draw attention and my initial concern is to get a hearing.† By showing his inner drive to write he portrays a greater picture about writing as he shows how one writes consciously aboutRead MoreHow Writing Can Help You Cope With Life1205 Words   |  5 Pagespurpose in â€Å"Why I Write† by composing a love letter to â€Å"writing† about how writing can help you cope with life. The author gives a precise summary about why she writes. It seems to be random thoughts, but she has a point to the madness as the reader has to analyze the text more deeply to understand what Williams means. Williams uses this piece to describe a climatic read about why the author feels the need to express herself in this way. However, why would someone write a love letter to writing, or anyRead MoreReflection About Reading In English765 Words   |  4 Pagesreason why I chose this class is I would like to write graduation thesis in English. I have some difficulties as an English speaker, as a university student in U.S. because of three reasons. Firstly, I thought that there were many differences between writing in Japanese and writing in English for me. I could not understand why I could not write what I want to write in English, why I cannot find what I want to write in English. Secondly, I did not know the way to writing in English as I write in JapaneseRead MoreAnalysis Of Terry Tempest Williams Why I Write1254 Words   |  6 PagesWriting may be an enthralling experience for one and a clever way to decompress for another. In general, however, writing has different purposes for a variety of people. â€Å"Why I Write,† written in the late 20th century by Terry Tempest Williams, describes various reasons for writing narrated from a female’s perspective. The short essay begins in the middle of the night with a woman engulfed in her own thoughts. She abruptly goes forth by reciting the multiple reasons why she continues to write inRead MoreMy Reflection Of Writing1579 Words   |  7 PagesThis semester I wrote three essays; a review essay, annotated bibliography, and a research paper. As I wrote these essays I learned what they were, why they are written, and why people use these to obtain information. Throughout this course I enjoyed writing the essays and learning new things from what I was writing about. Although some were not easy I still took my time and made sure they were perfect in my eyes. While taking this class I learned a new perspective of writing these specific papersRead MoreI Know Why The Caged Bird Sings And Tim O Brien s The Things They Carried942 Words   |  4 Pagesauthor paints an image in the reader s mind through the style that they can write. The way an author chooses to write their novel can help the reader understand the author s personality, beliefs, and general lifestyle. Every author who has ever written anything from a letter to a friend to a novel has their own personal writing style unique to their author that can be observed through their works. Maya Angelou s I Know Why the Caged Bird Sings and Tim O’Brien’s The Things They Carried are no exceptionRead MoreMy Legacy in Writing Skills646 Words   |  3 Pagesmy years of wisdom. I have used this quote at least once in my writing every year, because it inspired me to leave my legacy through writing. I write of what I want to know, of what I want to change, of what I believe, and one day a collection of my writing will be all that’s left of me, and it will allow me to still matter, even when I’m gone. Although my writing may not be equivalent to Tom Stoppard’s, I am slowly progressing towards obtaining strong writing skills. Writing in English 1101 thisRead MoreThe Reasons Why Writing Is a Part of Me Essay728 Words   |  3 Pagesseveral ways I feel open when it comes to writing. First, I have been writing si nce I was a little girl. Next, I have journal writing in school; finally, my true feeling about writing assignments. When it comes to writing it makes me feel good as a person. It helps me express my feelings in a better way. I would rather write the way I feel about things than talking it out. I feel that I am heard when someone reads what have I wrote. If I could write things down in every situation that I am in; I would.Read MoreKatherine Bomer s Hidden Gems 1322 Words   |  6 Pagesmethod of â€Å"hidden gems†. A gem in Jess’s letter would be â€Å"When I’m a teacher I want to be the nicest teacher in the world.† Jess started and ended this sentence with the correct punctuation. I feel like I can sense Jess’s passion about teaching. She writes that she wants to be the nicest teacher and I think that this captivating. Another gem would be â€Å"When I’m a grown-up I want to live in a manchine and be a millianare.† I think this s entence is humorous. Children say what they are thinking, and JessRead MoreMy Journey As A Writer1091 Words   |  5 Pagesor her true talents.† I thought these characters were the only things I needed to become a good writer, but I was wrong. My journey as a writer in both native and foreign languages thought me about some life lessons other than discipline and hard work. â€Å"Please write a short essay about a cat,† an instruction given by my teacher was the beginning of my development as a writer. It was my first task on writing a Malay essay during primary school. Being clueless at that time, I sat down with a paper

Andy Warhol Pop Politics Essay Example For Students

Andy Warhol: Pop Politics Essay His portraits of American presidents and residential candidates, queens, Communist dictators, and other political figures reveal intriguing, yet until now unexplored insights into Whorls own celebrity status and political leanings. Whorls images of these powerful personalities comment on the interrelationships between politics and celebrity culture in the late Pointiest century connections that remain ever present today. Timed to coincide with the 2008 presidential election, this exhibition offers a probing and entertaining look through the eyes of Americas most famous pop artist at the leaders who shaped the twentieth century. Warhol (1928-1987) rose to name in the sass and became synonymous with pop art and American culture of the period. He played upon the increased bombardment to advertising and media images to develop a signature style that employed commercial subjects rendered in bold, graphic designs and colors using mass production processes. In capturing the rebellious spirit of the time through his work and personality, Warhol created a body of work that transformed our understanding of art by blurring the boundaries between art and popular culture and shaped a nevi aesthetic that came to symbolize the counterculture. His now iconic work has influenced subsequent generations Of artists and continues to resonate With audiences today, both young and old. Building upon a long history of political portraiture dating back to Egyptian pharaohs, Roman emperors, and European monarchs, Warhol pictured twentieth-century politicians in his graphic style Which likened them to commercial products like Campbell soup and Coca, Cola. In so doing, Warhol connected his images of these leaders to Americas fascination and consumption of all aspects of contemporary culture. His portraits are not just records of the individuals; they also position the leaders within the intent of cultural taste and political values. A dedicated portraitist, Warhol captured the likeness of an astonishing number of individuals including those of friends, artists, actors, athletes, and world leaders. His depictions of John F. Kennedy, Mao Sedona, Queen Elizabeth II, and Others were derived from widely circulated official or media photographs. Whorls appropriation these stock images signaled his interest in how political leaders ascended to celebrity status as a result of their constant representation in the media. The exhibition highlights Whorls fascination with Americas royal family the Kennedys wrought his images of President John F. And Jackie Kennedy and Senators Robert and Edward Kennedy. Struck by the media coverage of President Kennedys assassination, Warhol created a series of works based on news images of Jackie, both as glamorous First Lady and as grieving Wife. Seven Of these paintings will be shown alongside rare preparatory studies. The exhibition features a recent Currier acquisition: Sash November 22, 1963. Produced five years after the assassination and exhibited now at the forty-fifth anniversary of the tragic event, this print portfolio includes eleven screenings based on related news images including the book depository, Lee Harvey Oswald, and President Kennedys campaign poster making it the only work by Warhol to depict the President. It also reproduces the teletype text from the four days between the Presidents assassination and funeral, with the sheets bound like a book. Accompanied by archival materials and unique trial proofs related to this project, another major highlight is a one-of-a-kind, never-before exhibited screening of Senator Robert Kennedy that Warhol did not include in the final edition of the Flash portfolio, Also featured are excerpts trot a 1965 reenactment to the assassination limed in Whorls New York City loft known as The Factory, These works are shown for the first time alongside Whorls 1980 portraits of Senator Edward Kennedy. In addition to selecting certain leaders as his subjects, Warhol was also commissioned by political hopefuls such as Edward Kennedy and Jimmy Carter. .u7024ce339a48ffd937ff36f6dd97adb9 , .u7024ce339a48ffd937ff36f6dd97adb9 .postImageUrl , .u7024ce339a48ffd937ff36f6dd97adb9 .centered-text-area { min-height: 80px; position: relative; } .u7024ce339a48ffd937ff36f6dd97adb9 , .u7024ce339a48ffd937ff36f6dd97adb9:hover , .u7024ce339a48ffd937ff36f6dd97adb9:visited , .u7024ce339a48ffd937ff36f6dd97adb9:active { border:0!important; } .u7024ce339a48ffd937ff36f6dd97adb9 .clearfix:after { content: ""; display: table; clear: both; } .u7024ce339a48ffd937ff36f6dd97adb9 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u7024ce339a48ffd937ff36f6dd97adb9:active , .u7024ce339a48ffd937ff36f6dd97adb9:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u7024ce339a48ffd937ff36f6dd97adb9 .centered-text-area { width: 100%; position: relative ; } .u7024ce339a48ffd937ff36f6dd97adb9 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u7024ce339a48ffd937ff36f6dd97adb9 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u7024ce339a48ffd937ff36f6dd97adb9 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u7024ce339a48ffd937ff36f6dd97adb9:hover .ctaButton { background-color: #34495E!important; } .u7024ce339a48ffd937ff36f6dd97adb9 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u7024ce339a48ffd937ff36f6dd97adb9 .u7024ce339a48ffd937ff36f6dd97adb9-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u7024ce339a48ffd937ff36f6dd97adb9:after { content: ""; display: block; clear: both; } READ: Humanity And Politics In Gullivers Travels EssayTheir patronage of Warhol was intended to help position them as contemporary and progressive. That these projects like his print Vote McGovern featuring a green-faced Richard Nixon created to support George McGovern presidential campaign against the incumbent were produced to raise funds for candidates residential campaigns, illuminates an active, even if veiled, political agenda by Warhol, who claimed he only voted once. Whorls elevated status in American society also gave him enter ©e into the world Of politics including invitations to governors mansions and state dinners at the White House. The exhibition highlights these portrait commissions through photographs, drawings, prints, and paintings of each subject. Central to the exhibitions focus is Whorls process for creating his portraits. The artist was more directly involved with his portrait commissions than with any other works. Rather than manipulating mages he found in mass media outlets, Warhol began his commissions by taking dozens of Polaroid images of his subject, After selecting one or more of these photographs, Warhol transformed the sitters likeness into his signature style, often first producing drawings and then prints and paintings. This exhibition presents these Polaroid alongside related works of a single subject, capturing Whorls process as well as the repetition of engages that became a hallmark to his work This repeated image is further underscored with the inclusion of a large section of Mao wallpaper that the artist created for a gallery presentation f his work in 1974. Ever the multimedia artist, Warhol also produced and directed films and created his own television shows. These projects helped shape his presence in American culture. The exhibition also includes excerpts from several of Whorls film and television programs that include political content: Since (1 965), The Life of Juanita Castro (1965), Afternoon (1965), and an episode of Andy Whorls TV featuring an interview with New York Senator Daniel Patrick Monomania (1983). Throughout the exhibition, works are accompanied by rarely seen archival materials from Whorls time capsules. Beginning in 974, Warhol collected papers, photographs, correspondence, business records, and Other Objects in cardboard boxes, amassing over six hundred boxes by his death. Highlights relating to the exhibition include a solicitation from President- Elect Nixon for recommendations for his administration, an invitation to Onions inauguration, a signed letter from Senator Robert Kennedy expressing his thanks for Whorls support, and a handwritten note from First Lady Nancy Reagan. These materials yield new insights into Whorls connection to the political celebrities he portrayed and how those relationships extended beyond his portraits of them.

Morgan Lewis Essays - University Of Florida, Gator Growl, Humanities

Morgan Lewis Humanities II December 8, 2017 Essay 3 For this essay I attended Gator Growl Homecoming festival at the university of Florida. This is annual festival that the university of Florida holds to celebrate past, present, and future students. During this festival this is a time for past students to come back and unite and catch up. This is also an opportunity for present students to have fun supporting their school. This is also a great event to attract future students to the university of Florida. This is basically a big social event that celebrates important alumni and students hard work. During this event there is also celebrity guest appearances. Gator Growl is the flagship event of the University of Florida and a tradition that has continued to be a prominent for over 90 years. It is a University of Florida tradition that marks the culmination of Homecoming Week. The pep rally is rooted in the tradition and honoring alumni. This tradition started with dad's day and this is where dads would come to spend the day with their child. In 1924, Dad's Day was replaced with a Friday night pep rally, which was then accompanied by the addition of comedy skits in 1932. Thus, Gator Growl was born. The massive production consists of musical and comedic entertainers, Gator athletics and performances by UF's Cheerleaders, Dazzlers and Pride of the Sunshine Marching Band. Hundreds of students work endless hours to create the annual spectacle. The amount of student participation that goes into an event like this has given Gator Growl the right to call itself the largest student-run pep rally in the nation. With the time the tradition chang es over the years and new ones are formed. Gator Growl's tradition possesses the pride, feelings and hard work of the varying generations of students at the University of Florida. This memorable show will foster the legacy that students and alumni will be able to share for generations to come. (Gator Growl 2017). I really enjoyed this experience I was able to meet new people and explore the college. The university of Florida is home to many students that come from different areas all over the world. I even met someone that was from New York. This was a good experience for me because it was nice to see different aspects of life. Every student had different interest and majors. I enjoyed being able to speak to past alumni and the paths they have taken in life. I also really enjoyed the music. Guest celebrity appearances was snoop dog and Daya. I have never seen them perform in person. Dayas music was very inspiring and enjoyable. The way the crowd responding to their favorite songs was fun to see. People would sing and dance while taking tons of videos and pictures. I think this course gave me a better understanding for different cultures. During this music festival I was able to see how different people showed appreciation to the performing artist. I noticed that people were very documented of the musical artist. People spent a lot of time recording the performance. I think documenting things like this is crucial. Its memories and history that we are able to keep with us. I notice students reacted differently to different songs. Some students really enjoyed snoop dog while others really enjoyed Daya. This goes to show that people truly have different interest in music, art of any culture event. Some people find different music more artful and enjoyable. For example, the older guest at the festival showed less interest in Snoop Dog which is understandable because he appeals to the younger crowd. Regardless everyone showed appreciation for the singers and bands hard work of producing music and true art. I love cultural events so yes, I will co ntinue to attend them. Cultural events are very crucial in understanding our world as a whole. We must take the time to attend these kinds of events so we can better understand different cultures in the world. Without experience to other backgrounds we have less knowledge. Less knowledge is less appreciation and understandings. (Mario Morales). Humanities is everywhere and we must go out and experience it. The benefits of

Blackmores Limited Analysis Essays

Blackmores Limited Analysis Essays Blackmores Limited Analysis Paper Blackmores Limited Analysis Paper Table of Contents Title Page Executive Summary 3 1. Company Overview 6 2. Industry Analysis 19 3. Current Issues 33 4. Blackmores Financial Analysis 42 5. Share Valuations 53 6. Valuation Discussion 72 7. Appendix – Financial Statements 80 References 92 Executive Summary Blackmores Limited is an industry leader in both natural health and research, basing its principle activity on the development and marketing of health products and natural supplements. Blackmores Limited (BKL) listed on the Australian Stock Exchange on the 2nd May 1985. Ownership structure has remained relatively constant, with the largest shareholder with a total substantial holding of 24. 69% of the company is the Executive Director Marcus Blackmore, son of the founder Maurice Blackmore. The company has over 150 products, catering for all areas in natural health and vitamins. Products are distributed primarily through retail pharmacies, supermarkets and health food shops and operations now stem offshore to New Zealand and throughout Asia. Products are developed by Blackmores Scientific Researchers and are governed under the strict guidelines and control of the Therapeutic Goods Administration (TGA). Blackmores’ initial process of the research of alternate medicines was initially via the supply of products and funds to external researchers. However, the late 1990s saw the company to shift towards a more in-house, formalised process, with the appointment of a research manager based at Southern Cross University. This involvement runs from the supply of products to the full funding of clinical trials. Commitment and attitude towards their socially responsible and environmentally friendly business practices sits high on Blackmores’ priority list, continually incorporating more and more socially and environmentally sustainable practices to all aspects of their business model. The Complementary health care industry in Australia distributes primarily through its pharmacy and supermarket channels and therefore caters to customers in each of these markets. Competition in both markets is derived from two major firms, namely Symbion and Sigma Health. Blackmores is currently operating in an industry which has witnessed recent rapidly accelerating growth, placing itself at the beginning of its mature growth life-cycle. Blackmores is the only mainstream brand that has been able to diversify its position across health food stores, pharmacy, grocery and practitioner channels. An aging population, exchange rates and the expected increase of patients, have all had a significant impact on the operations of Blackmores, with many of these contributing to a variety of key success factors. The well-knows pan Pharmaceuticals scandal has had an astounding impact on the entire complementary health-care industry, with it now acting as a precedent for all industry and issues going forward. DuPont analysis highlights the rapid accelerating growth seen by the industry and Blackmores specifically. This is evident across all aspects of DuPont analysis, with ROE, operating cash flows and dividend growth reaching all time company records, just to name a few. Our final company analysis reveals share price to be in fact undervalued by all relevant measures expect for Free cash Flows to Equity. Further research implies this can be contributed to the excessively large increases in Cap Expenditure witnessed over the past 2 years. Blackmores is currently positioned to continue to uphold its market leading position in an industry which is ever-expanding. Exciting new opportunities in Asia present avenues for future company growth. Management has remained fairly constant and it’s capability in the past and going forward should allow the company to further develop with the ongoing changes in health-care and alternate medicines. We believe as such the company’s full potential has not been reached and as such is not being fully valued for the market, consequently presenting a long-term investment opportunity. 1. Company Overview Company Overview Business Description Blackmores Limited is a leading expert in natural health and research. Its principle activity is the development and marketing of health products and natural supplements throughout Australasia. The company has over 150 products and caters for all areas in natural health and vitamins. Products are distributed primarily through retail pharmacies, supermarkets and health food shops. A key reason for the success of Blackmores is the strong brand platform that has been developed and remains a differentiating factor in the marketplace from its competitors. Blackmores strategic planning is closely linked to its focus on heritage and core values. This enables the company to maintain their market position and to achieve continuous ongoing success for the both the company and its shareholders. Core values have been identified to include: Passion for natural health Integrity Respect Leadership Social Responsibility Products are developed by Blackmores Scientific Researchers under the strict guidelines and control of the Therapeutic Goods Administration (TGA). Company growth is highly important and is driven by high levels of research and development with particular emphasis placed on growing areas and problems such as obesity, cardiovascular and joint problems. The company is highly interested in international diversification and since its initial break into the New Zealand market in 1981; the company has paid particular attention to other emerging markets in the South-East Asian regions. These areas are of particular importance to Management, in the quest to meet goals and expectation, further develop the Blackmores brand name and capture a larger market share of the industry. ?Blackmores is the idea and vision of its creator Maurice Blackmore a naturopath in the 1930s, considered ahead of his time. ?Blackmores considers itself a leader and innovator in the continuous clinical research of health products. ?Blackmores considers it to be a socially responsible company and was successful in winning the 2006 Pharmaceutical Packaging Action Award for the reduction in packaging waste across the business. Blackmores sales and manufacturing is stringently regulated and tested by the Therapeutic Goods Administration. Company History Blackmores had its beginnings in the 1930s through the vision and passion of its founder Maurice Blackmore (1906-1977), an English immigrant with ideas ahead of his time. Maurice Blackmores’ belief in the health-giving properties of herbs a nd minerals led him to develop a system of healthcare based on naturopathic principles. Maurice Blackmore first opened a naturopathic rest home in Rockhampton, Queensland in 1934. He than moved amongst other Queensland towns before settling in Brisbane in 1938 when he opened the first health food store in the Fortitude Valley. Blackmore was a pioneer in the naturopathic industry which heralded him the title,’ the father of Australian Naturopathy. Blackmore helped establish the Australian National Naturopathic Association, a body setup to set the standards and codes of naturopaths in Australia. The company was setup initially in Brisbane in 1962 as Blackmores’ Naturopathic Organisation Pty Ltd as a family naturopathy business and this later expanded to Sydney. Maurice Blackmore retired in 1973 leaving the company to his son, Marcus Blackmore. On the 2nd of May 1985, Blackmores Laboratories Limited was listed on the Australian Stock Exchange. The company in an expansion phase acquired ‘Russell Health Foods’ and retail chain ‘Healthy Life’. The latter was later disposed of in 1991. In 1988, Blackmores’ established a manufacturing and distribution base in New Zealand. Fiscal 2001 The 2001 year saw a slowdown in the Australian and New Zealand market which saw sales revenue set at $76. 97 million. This could be contributed to the introduction of the GST which automatically led to a 10% price increase, or perhaps a slowdown in overall Australian GDP. Sales across South-East Asia were up nearly 24% as Blackmores attempted to move into the growing kids healthy snack market with the introduction of the product Fruity Bitz. Total dividends paid to shareholders for the year increased to 18 cents per share. Fiscal 2002 2002 saw sales revenue increase by 6. 5% to $81. 4 million however profitability was down 7. % on last years profit figures. Blackmores also implemented their new business system which was somewhat successful for the purpose of assisting with the problems associated with multiple products, channels, retailers, ingredients, suppliers and regulators. South-East Asia continued to be a strong winner for the company with increased and unprecedented growth despite a downturn in the local Malaysian and Thailand markets. New Zealand continued to be a difficult market and saw the reduction in capital base and sell-off of the Auckland premises. Positively, the Australian Medical Association seen traditionally as a staunch opponent to complementary medicine publicly expressed and acknowledged support for the industry. Fiscal 2003 2003 was an unprecedented year in Australian complementary medicine industry with the license suspension and total recall of all Pan Pharmaceutical products. While Blackmores was not directly affected by the recall it did face a significant increase in demand as competitors products were removed from the shelves. Sales increased domestically, as well as in the hostile Asian market whereby sales were incidentally boosted during the SARS epidemic. Interestingly in the ailing New Zealand market Blackmores formed a strategic alliance with PSM Healthcare, the leading New Zealand pharmaceutical and toiletries company to stock Blackmores range. A total dividend of 35 cents was paid to shareholders, as Blackmores increased marketing and customer relations. The Blackmores Health and Wellbeing Survey was conducted, and in light of the Pan crisis a greater commitment was made to research and development with over $1. 5 million granted toward external research at Southern Cross University. Fiscal 2004 2004 witnessed Blackmores’ achievements in protecting the market share that as captured in the post Pan-Pharmaceuticals fallout. Fully-franked dividends for the year were paid to shareholders at a rate of 46 cents. Debt levels were reduced to $6 million when compared to $8. 2 million in the year previous. Consumer sentiment seemed to be at a high, with specific atonement to the Wellness Revolution and widespread interest in maintain ing health. Fiscal 2005 2005 was an exciting year for the healthcare industry and in particular for Blackmores with sales climbing to $134 million and Group Net Profit growing by 26% over the year. A total fully-franked ordinary dividend of 46 cents per share was paid to shareholders as well as a special dividend of 14 cents. Debt levels were once again reduced, and excitingly the Company announced the construction of a new home base in Warriewood, on the Northern Beaches of Sydney. Fiscal 2006 The 2006 fiscal year saw Blackmores win the prestigious Hewitt Best Employer award with over 160 organisations over Australia and New Zealand taking place. The Asian market continued to flourish, with combined sales growth of 27. % in both the Thailand and Malaysian markets. Furthermore, Blackmores announced its intention to track and enter the Taiwanese market. This would represent the company’s first market entry for nearly a decade. Sales grew to $148 million as profit increased 20% over the previous year. Dividends grew to a fully-franked amount of 69 cents. Recent Financial Performance Source: IbisWorld Research and Development Blackmores places a large emphasis on the resear ch and development of products, and in particular the validation of products and their claims. This has mainly come about through a shift in ideas and attitudes mainly pushed by regulatory bodies, health professionals, consumers and suppliers. Blackmores has always been involved in the research of alternative medicines. This had been a difficult process in the past given the magnitude of products. This was initially through the supply of products and funds to external researchers. However, in the late 1990s, the company decided to formalise this with the appointment of a research manager based at Southern Cross University. This involvement runs from the supply of products to the full funding of clinical trials. Blackmores focus is mainly on clinical research rather than scientific research, with an overall goal of supporting the medium to long-term objectives of business development and marketing. Social Responsibility and the Environment Blackmores is highly regarded for their commitment and attitude towards their socially responsible and environmentally friendly business practices. Blackmores adopts socially and environmentally sustainable practices to all aspects of their business model. Blackmores places extreme importance from its clinical research, to responsible regulation, marketing claims, education and thoughtful attention to its employees. The company believes strongly in environmentally sustainable practices, and has achieved solid outcomes in its broad based approach to reducing packaging waste across all aspects of the business. The company has maintained the ability to reduce packaging waste in landfill, achieved a waste-free flow of packaging between the Balgowah plant and Brookvale warehouses; and has implemented a system of re-use for all cardboard cartons, shippers and pallets. The company has also created a virtually paperless system at its Brookvale warehouse with state-of the-art technology and software in which stock is electronically recorded on arrival and actioned on departure. Furthermore, the design of the new Warriewood site incorporates a number of features that will minimise Blackmores’ impact on the environment and incorporate the latest concepts in environmental stability. The following diagram outlines the flows of manufacturing, packaging and transportation that are taken to deliver the Blackmores range to the consumer. Furthermore, the company holds strong intrinsic values in terms of their employees and employee benefits. The companys executive chairman, Marcus Blackmore believes in â€Å"the 3 Ps – people, product and passion. † The belief is that if you can get those parts of the business right, the rest of the business takes care of itself. Some benefits that staff members enjoy include: A company subsidised on-site gym A subsidised staff cafeteria A profit-share scheme whereby twice a year all permanent employees receive a proportion of after-tax profit which can either be taken as cash, or Blackmores shares Staff discounts on the Blackmores range Paid maternity and paternity leave Extensive staff training and career development Weekly in-house massages A program that encourages all employees to donate 0. 5% of their salary to the charity of their choice, which the company than matches. Ownership Structure Blackmores Limited (BKL) listed on the Australian Stock Exchange on the 2n d May 1985. The largest shareholder with a total substantial holding of 24. 69% of the company is the Executive Director Marcus Blackmore, son of the founder Maurice Blackmore. The ownership registry of Blackmores is not dominated by one particular private company or individual investor. It should also be noted that managed fund investors do not hold a large percentage of the shares on issue. TOP 20 SHAREHOLDERS 30 April 2008 – Courtesy Blackmores Ltd No. HolderTotal Holdings% I/C 1Mr Marcus C. Blackmore3,994,30224. 68 2Dietary Products (Aust) Pty Ltd576,1323. 56 3JP Morgan Nominees Aust Ltd 436,7792. 7 4National Nominees Limited348,7102. 16 5Milton Corporation Limited305,1151. 89 6ANZ Nominees – Cash Income211,1271. 3 Gowing Bros Limited207,3631. 28 8Ms Jennifer Tait202,2811. 25 9Blackmore Foundation Pty Ltd200,0001. 24 10Sister Esther Whellan182,8681. 13 11Queensland Investment Corporation178,8111. 11 12Citicorp Nominees Pty Ltd155,0000. 96 13Mr Roy Shepherd109,6510. 68 14Trans State Nominees Pty Ltd109,1500. 67 15Rathvale Pty Ltd100,4110. 62 16Mrs Queenie Hannah Elisabeth Praeger94,9800. 59 17Invia Custodian Pty Ltd94,3020. 58 18HSBC Custod y Nominees80,5410. 5 19Mrs Patricia Gladys Wright78,8680. 49 20Patricia Gladys Wright Mark Gregory Wright James Gregory Wright76,6880. 7 Blackmores Limited Subsidiary Companies Source: IbisWorld Directors/Senior Management Source: IbisWorld Share Price Performance 5 YEAR SHARE PRICE PERFORMANCE – as at 28th April 2008 Source: IbisWorld BKL Historic Performance on $10,000 investment Source: Aspect Huntley Recent Company Announcements 28th April 2008 – Blackmores announce quarterly profits On the 28th April 2008, Blackmores announce a third quarter net profit after tax of $17. 5 million. This represented a 19. 6% increase on the same period last year. Australian sales increased by 6. % with moderate growth across the industry, with Blackmores’ market share remaining strong at 21. 6%. No new products were made available during the quarter but a number of new products a planned for the last quarter. Current Debt levels stand at $21. 8 million increasing due to the construction of the new Warriewood site which is nearing completion. Relocation remains scheduled for the first quarter in 2009. 24th April 2008 – Change of Directors Interest Notice Marcus Blackmore disposed of 100,000 shares as a donation to a private philanthropy program approved by the ATO. After the change and as of the 24th April 2008, the number of securities held directly and indirectly by Marcus Blackmore include: 3,994,302 ordinary shares held in the name of Marcus Blackmore; 2,1094 ordinary shares held in the name of Marcus Blackmore [Darlene Howie Account]; 576,132 ordinary shares held in the name of Dietary Products Australia P/L; 182,868 ordinary shares held in the name of Ester Mercie Whellan; and 14,364 ordinary shares held in the name of Estate of Late D Howie. . Industry Analysis Market Characteristics Definition The Complementary Health Care Industry is difficult to define, because it can encompass everything from organic food to homeopathic medicines such as food supplements, natural medicines and external products, such as skincare. This sector can also include over-the-counter products available without prescription. Nonetheless, complementary health care products are intended to maintain health, rather than treat illnesses. For the purpose of this analysis we define Complementary medicines as those of herbal, vitamin, mineral and/or other substance, presented in a ‘pharmaceutical’ dose form – these include, tablets, capsules, liquids, powders and/or other forms. Figure 1: Entire spectrum of complementary medicine. Statistics In Australia in 2000, it was estimated that 52% of the population used at least one complementary healthcare product. Recent studies have shown that it has now risen to more than 70% of the population using complementary healthcare products and a quarter of the population visit complementary health practitioners each year. Furthermore in regards to the entire world population it is estimated that between 40% and 90% use complementary medicine. A News poll survey conducted by the CHC (Complementary Healthcare Council of Australia) in September 2001 showed that out of all participants polled: -86% agreed that supplements have a role to play in maintaining good health; -83% agreed that supplements have a role to play in preventing illness; and -66% agreed that supplements have a role to play in helping cure illness. Research cited by the Australian Medical Association shows that more than 80% of GP’s have referred patients for some form of complementary therapy. Australian domestic sales of natural healthcare products exceeds $A1. 5 billion. The total expenditure on healthcare in Australia was estimated to be approximately $57 billion in the financial year ending June 2002, which would have equated to approximately $2,850 per head of population. Of this amount, the public cost is around $2,000, whi le the individual contributes $850. However the actual cost was $60 billion. More than $2. 5 billion a year is now spent on alternative and complementary healthcare in Australia in which the figure is growing by the day. Regulation – Complementary Medicines In previous years, complementary medicines were often regulated around the world as a subset of food regulation; however they were very often limited in what they could claim on labels and in advertising, and the quality standards for manufacture varied considerably. But over the past decade the increase in demand has caused complementary medicines to be regulated in global markets as â€Å"medicines† and â€Å"health care† products and not â€Å"foods†. With this shift have come improved manufacturing standards. Blackmores’ products are referred to in Australia as complementary medicines. They can also be referred to as traditional or alternative medicines and can include vitamins, minerals, nutritional supplements, herbal, aromatherapy and homeopathic products. Blackmores’ products are developed by in-house experts, using a combination of scientific evidence and hundreds of years of traditional knowledge. Products are made to exact requirements, with quality ingredients sourced from all over the world and produced under good manufacturing practices. Products are approved by regulatory bodies in each country where they are sold and are approved by Australias and the various importing governments stringent standards of safety. Complementary medicines are generally used for self-medicating of small minor deficiencies and for the purpose of maintaining general health and well-being. In Australia, complementary medicines are regulated by the Therapeutic Goods Administration (TGA) and all medicines must be registered with the Australian Register of Therapeutic Goods (ARTG). The Therapeutic Goods Act (TGA) 1989, came into effect on 15 February 1991 aims to ensure the quality, safety and efficacy of medicines and ensure the quality, safety and performance of medical devices. More than 15,000 medicines are listed on the Australian Register of Therapeutic Goods. Registered medicines have been evaluated by the TGA for quality, control and importantly efficacy. When any company makes claim in regard to efficacy they must have the supporting research. Complementary Medicines is a highly regulated industry in Australia which has put the industry at the forefront, helping protect all Australian and overseas consumers, ensuring that Australian consumers have medicines produced at a high level of quality control. Key competitors The Complementary health care industry in Australia distributes primarily through its pharmacy and supermarket channels and therefore caters to customers in each of these markets. Blackmores major competitors are tiered in these two distinct markets; the pharmacy channel where Bullivants (part of the Mayne Group) trading as Symbion on the ASX, is the main competitor, and the retail / grocery market where Nature’s Way, Cenovis and Golden Life all compete for market share. In terms of actual of product range and image within the pharmacy market Symbion can be considered Blackmores’ major competitor. However, there does not seem to be any no clear dominate service providers reaching Blackmores target industry, with much of this being contributed to the Pan Pharmaceuticals scandal, which essentially removed from the market a large amount of competition. In light of this, Blackmores recorded its market share, based on combined retail sales in both of the two channels, remained strong at 21. 6 per cent. Market Distribution and Access to Complementary Health Care Complementary health care are available to consumers through a number of different channels, with the total complementary health care market achieving a value in the target of $800 million to $1 billion AUS. Pharmacy remains a primary outlet for many complementary healthcare products, which is reflects approximately 40% of the entire market. This suggests the changing face of pharmacy practice as Pharmacists are becoming more knowledgeable about recommending appropriate complementary health care and otherwise employing in-store naturopaths to meet consumer’s needs. Health food stores are also an important distribution channel for many complementary health care products provided by Blackmores, which represents approximately 20% of the market. However in recent years there has been a shift in the availability of major brands through grocery channels which now has also increased to approximately 20% of the market, not only within the vitamin and mineral supplement shelves, but within the medicinal aisles competing alongside pharmaceutical products such as cold, flu and allergy relief. Direct to Consumer (DTC) sales also remain a consistent channel which are approximately 7% of the market for complementary health care, particularly those products with high brand loyalty to companies that provide a wide range of complementary medicine products. This distinct relationship is evident across a wide variety of Blackmores’ products. Another source of distribution is availability from a complementary health care professional such as; Herbalist or Naturopath which in itself represents approximately 10% of the market. It has become increasingly popular for appropriate medicines to be supplied as a part of a holistic consultation regarding the immediate and longer term health needs of a patient rather than just addressing immediate symptomatic problems. Barriers to entry The level or degree of barriers to entry into the Complementary Health Care industry will indicate how limited the industry is to new entrants. Ultimately Blackmores will be seeking to raise the level of barriers to entry into the industry, to minimise other potential competitors from entering the market and taking a portion of its market share. As stated before in previous sections of the paper the Complementary Health care industry is difficult to define as it covers so many different sectors. But if we focus on the products that Blackmores distributes, namely herbal, vitamin, mineral and other substances we can see that the industry is not dominated by any group of major competitors. We are aware that Blackmores is a recognised and strong performing company and based on its retail sales its share of the market only accounts for 21. 6%, which seems quiet small considering its industry leading position. The industry’s low level of concentration limits the power that the leading companies have over the rest of the market; hence they are unable to set the price like an oligopoly market and effectively remove the other competitors. In addition companies are not able to experience the full benefits of economies of scale due to their relatively small size. Thus no company has any significant cost advantage over any of the other competitors. There is a considerable level of regulation within the industry which has increased more so in the recent years from Australian government. Entry into the complementary health care industry requires strict processes which can potentially be a lengthy process. As mentioned, in Australia complementary health care products are regulated under the Commonwealth Therapeutic Goods Act 1989 and regulations are administered by the Therapeutic Goods Administration. These goods must be manufactured under the strict pharmaceutical standards of good manufacturing practice by Australian manufacturers and on many occasions regulators have been forced to take action. In one instance in April 2003 the TGA suspended the licence of Pan Pharmaceuticals, Australia’s largest manufacturer of herbal products, mineral and nutritional supplements at the time, and ordered the immediate withdrawal of hundreds of products it had manufactured. This in turn would deter many potential entrants into the industry. Overall, the current barriers to entry are high, this industry is on track to continue to grow in the future where we will possibly see a further increase to the restrictions into the industry and further developments in regards to regulation. SWOT Analysis StrengthsWeaknesses Most of the products used in Australia are manufactured in Australia to some of the highest standards in the world, based on GMP validation and strict therapeutic regulations. Low risk dietary supplements are effectively regulated under the same law as pharmaceutical drugs, except the supplements attract 10% GST where most drugs are GST-exempt. According to the CHC, complementary healthcare products can be of benefit in the management of some age-related diseases such as arthritis, certain types of cancer, heart disease and brain function disorders such as dementia, and help relieve symptoms of age-related changes such as the menopause. There is a 30% private health insurance rebate that is applied to some consultations, there is no subsidy for complementary health therapy. The increase use of complementary health care medicine can effectively reduce health care costs, as it evident that vitamin and mineral supplements and herbal supplements can reduce certain diseases, therefore there would be a reduction in hospital costs, maintenance costs etc. Pan recall has caused customers to think twice about purchasing complementary health care products. The non-prescription nature of these medicines means that the consumer is empowered to pursue a strategy of self-care. Greater training in undergraduate courses for medicine, pharmacy and nursing. There are minimal side effects with complementary health care products. Blackmores is the only mainstream brand that has diversified its position across health food stores, pharmacy, grocery and practitioner channels. Life Cycle The industry life-cycle illustrates the growth path of an industry and indicates the level of sales over the cycle’s time period. This is illustrated in the diagram below. Life Cycle of an Industry Based on the analysis of the Complementary Health Care market, the industry is at the ‘Rapid Accelerating’ stage of its life cycle. The primary reason is that people are living longer. Over the past century, life expectancy at birth has increased from 57 to 80 years. As an ageing population becomes more health conscious the greater demand for complementary health products will be a logical progression. More than $2. 5 billion a year is now spent on alternative and complementary healthcare in Australia and the figure is growing by the day. As people increasingly turned to complementary health cures, analysts forecast the emergence of a multi trillion dollar, global industry. Support Complementary Healthcare Council of Australia (CHC) The CHC of Australia is the peak body representing the overall natural and complementary healthcare industry in Australia. The CHC aims to enhance the health and wellbeing of Australia’s population through providing education and information on the use of complementary healthcare products. The CHC seeks to show that part of the answer in reducing public healthcare costs requires a different approach to healthcare policy. The CHC contends that by adopting healthcare practices that prevent illness, existing resources will be made available to provide improved levels of acute and crisis care. Implicit in this approach is the need for public education on the ability of individuals to take control of their health and prevent illness and disease, and the proven health benefits of lifestyle and natural approaches to maintaining good health. Basis of Competition The industry primarily competes on quality rather than price, although price does bare some importance. The stringent regulation of contemporary health care ensures the quality, safety and efficiency of medicines The industry however would have suffered substantially from decrease in revenue growth due to the Pan Pharmaceutical recall situation, where Pan Pharmaceuticals were accused of substituting ingredients, manipulating test results and for having substandard manufacturing processes. This caused the TGA to suspend the licence of Pan Pharmaceuticals and ordered the immediate withdrawal of hundreds of products it had manufactured. This reduced sales dramatically which in essence decreased the industries revenue. There is however no real external competition to this industry and it contains very low levels of globalisation. Most of the products used in Australia are manufactured in Australia to some of the highest standards in the world, based on GMP validation and strict therapeutic regulations. In addition the Australian companies do not have any significant exposure to any overseas markets. Although Blackmores is adopting a globalistic approach and as such does have significant and expanding operations in New Zealand and increasingly parts of Asia, which are mentioned throughout this report. Market Sensitivity The key factors that impact the performance of the Complementary Health Care industry include: Ageing of population The proportion of the population aged 65 or more is set to double over the next 40 years due to the fact that life expectancy for the average person is longer. Older age groups are typically more health conscious and are prepared to seek alternative ways to increase their general well being. Disposable Income This factor does not have a major impact on the performance on the industry but does contribute to the industries revenues. Changes to household disposable income directly affect the budget and expenditure paid on complementary health care products and may case some people to opt for cheaper alternatives. Typical economic factors that impact disposable income are petrol prices, interest rates, tax rates and the labour market growth, all of which are ripe in current economic conditions both nationally and abroad. Technological changes There is always constant research and developments when considering the prevention of illnesses. This is despite complementary health care products not being presented to the population as a cure for illnesses. Increasing patient expectations The public is demanding more autonomy and involvement in their own health care. They want to prevent or slow down ageing and aim to optimise health by achieving higher levels of functioning. Additionally, the exponential increase in scientific studies being published on these products has no doubt added to public interest and confidence in its use. Key success factors The key success factors to the Complementary Health Care industry are: Unwillingness to restrict healthcare to prescribed medication when ill and being prepared to test a range of natural products for our own condition all for a sense of wellbeing; There are minimal side effects with complementary health care products; Recent studies have indicated that complementary medicine is finding a growing preference amongst patients with chronic or serious diseases who are looking for natural options to assist in the ongoing management of these conditions; The population as a whole are longer-lived, more urbanised, more readily informed, more affluent, demanding and mobile; and Whilst interest in complementary medicine has increased among practitioners and patients, this has been paralleled by increasing support by the government. This is evident by recent moves to grant degree status to schools of natural medicine, exemption of some complementary medicines from GST, as well as government support for private health insurance, many of which cover complementary health care. 3. Current Issues Recent Acquisitions The PAN Pharmaceutical recall in Australia A ‘virtual tsunami’ was taken against the Complementary Health industry after Pan Pharmaceuticals was closed down by the TGA in early April 2003. Pan was the fourth largest supplier of natural ingredients in the world, and privately owned. It was serious competition to the drug industry, which was taking steps to get into the supplement market. The company was accused of substituting ingredients, manipulating test results and for having substandard manufacturing processes. The TGA was first alerted to the possible manufacturing problems when dozens of adverse reaction reports to a pharmaceutical motion sickness tablet known as Travacalm were lodged, a product that had been produced under licence by Pan Pharmaceuticals. After some investigation it was found that manufacture of this product was substandard and doses of active ingredient varied enormously from that stated on the label. Pan Pharmaceuticals was not given a chance to fix this product before the TGA closed the company down, and all of its 1400 other natural health products were ordered removed from the shelves by the regulator. Health food shops and chemist’s shelves were stripped nearly bare of product overnight. Pan was placed into the hands of a corporate liquidator which was well known as a consultant to the multinational pharmaceutical industry. Pan was disposed of (in record time) only six months later for a miniscule fraction of its true value, destined never to be a serious competitor to the drug companies again. Although the original product in question was a pharmaceutical drug, media attention remained focus on natural medicine products, with some commentators seizing the opportunity to call into question the value of complementary medicine in general. The regulator claimed that the public’s confidence in the Australian supplement industry had been undermined. This was done deliberately by the TGA after creating mass consumer panic by calling a ‘class one’ recall on vitamins, minerals and other health supplements. Class one meant the TGA claimed that Pan’s vitamins, minerals and other supplements had caused death or serious injury when in fact nobody had died of any of Pan’s supplements or anyone else’s supplements. As a result the Federal Government set up an expert committee to examine the role of complementary medicines in the health care system, including the supply of safe, high quality complementary medicines, quality use and timely access to these medicines, and the maintenance and responsible and viable complementary medicine industry. After Pan, the TGA began a regulating frenzy. The TGA closed dozens of companies, fined others and imposed crippling compliance fees on the rest of the mainly Australian based supplement industry. This created a nationwide shortage of natural health products and eliminated much of the multi national pharmaceutical industry’s local competition. Pan Recall Impact Lingers 30 Jun 2003 Two months after the Pan Pharmaceutical recall, the complementary health care industry is still reeling from the shock of Australias biggest medical recall. One WA retailer has been forced to close and industry groups have stated that hundreds of jobs have been affected across the country. Complementary Healthcare Council executive director Val Johanson said several retail outlets and small companies in the Eastern States had gone to the wall. Bigger companies had to contract and there had been hundreds of jobs lost. She said â€Å"overall turnover was estimated to be down about 15 per cent to 20 per cent, which was not as bad as had been initially expected†¦ Between 30 per cent and 40 per cent of products were still off the shelves. † We had reports of people coming in and buying up bottles of products that had been recalled but which they had used for many years and still had faith in, she said. The picture that is coming through is that there is still very strong support out there for natural health care products. But we are not out of the woods yet. The council had no knowledge of any serious adverse effects from Pan Products despite the company having made up 11. 4 billion doses last year. Ms Johanson further added that there had been 71 cases reported to the Therapeutic Goods Administration but the TGA did not believe most could be linked to Pan. She epeated concerns voiced at the time of the recall that the entire complementary health care industry was being targeted by the TG A because of the sins of one manufacturer. Marcus Blackmore, chairman of natural health care company Blackmores, which did not have any products manufactured by Pan, said the industry was devastated but people still strongly believed in the products. Where is the evidence that these products were ever harmful? he asked. Its like the weapons of mass destruction. The Government just went ahead with what they wanted to do anyway. He said Blackmores own research showed 14 per cent of people in Australia went ahead and used recalled products despite Government warnings. A spokeswoman for the TGA did not comment on the number of cases of adverse effects but it was made known that this would be carefully assessed. At this stage there was no link to any of the Pan products. She said it was disturbing that companies were in the position of having to close, but the health and safety of Australians was most paramount. Red tape and GST continue to hamper Australians’ wellbeing April 19, 2006 Marcus Blackmore made an impassioned plea to the Federal Australian Government to make access to complementary medicines cheaper and easier for Australian consumers. The Executive Chairman of the leading vitamins producer Blackmores Ltd. old the Australian Financial Review (AFR) that an independent review of the ‘red tape’ associated with complementary medicines was badly needed. Mr Blackmore, has been talking to government ministers about high industry manufacturing costs, and is lobbying for the removal of GST from complementary medicines, in line with the current GST waiver for prescription medicines. Mr Blackmore spoke to Tony Abbott, stating he believed said it is the treasurer’s problem. He believes federal and state government support is needed to remove the GST on complementary medicines. Consumers may also face higher prices for vitamins and minerals across all brands because the federal drug regulator, the Therapeutics Goods Administration (TGA) is trying to raise listing fees. Rent increases and falling revenues for the TGA have been cited as reasons for the increased fees that manufacturers will need to pay the regulator. Upcoming Issues Remove the GST from the complementary health care products for which there is evidence to show they are as effective as PBS listed pharmaceuticals; Remove the GST from complementary health therapies conducted by approved therapists for which there is evidence of effectiveness; Provide reliable public information of the safety and efficiency of complementary health care, including information software for GP’s and pharmacies; Continue to penalise poor manufacturing practice but reduce the need for costly testing, in line with the relative risk of the product; Integration of complementary health training into university based courses for conventional health care providers, particularly GP’s, nurses and physiotherapist; and Funding for more research into complementary health product and therapies. High Barriers to entry This industry specific issue has great impact on future earnings of Blackmores. The Complementary health care has relatively high barriers of entry. It is now highly regulated which can potentially discourage prospective entrants entering the market therefore Blackmores will have higher market share which in turn typically means higher earnings. If the barriers to entry were Blackmores could risk other companies taking portions of future earnings. By continuing to build on their service to customers, Blackmores can maintain industry leader and eliminate any issues of low barriers to entry. Interest rates Blackmores has recorded a relatively low debt to equity ratio of under 40% at the end of the 2007 calendar year. This ratio has been maintained over the past 10 financial years. It can then therefore be assumed that a considerable amount of their acquisitions are funded via equity rather than debt. This essentially removes a substantially the impact of interest rates on their borrowings. Although increasing the interest component of the liability, in the context of current financials this affect will be marginal at that. Maintaining such a low debt (gearing) ratio has the ultimate affect of allowing financing costs to remain down and as such potentially increasing their cash flow and future earnings. Exchange rates Fluctuating exchange rates have an impact on Blackmores. Their recent increase exposure and as a result sales activity in Asian markets means they are subject to the favourable and unfavourable movements in the Australian and Asian currencies. Either way the currencies move will have a significant impact on their future earnings of Blackmores, and will cause the value of their international acquisitions to either increase or decrease, respectively. Ageing Population The longer people live the greater the impact on Blackmores’ future earnings. Over the past century, life expectancy at birth has increased from 57 to 80 years. Older age groups are typically more health conscious and are prepared to seek alternative ways to increase there general well being. If people know that there are products out there to help achieve this then they will be more willing to purchase and use these products. 4. Blackmores Financial Analysis Recent Financial Performance Blackmores’ financial performance and share price activity is heavily dependant and strongly affected by market trends for both domestic and international macroeconomic conditions. In particular, is consumer confidence in which the company relies on heavily to enhance its revenues, and subsequently profit. Blackmores’ sales have increased sharply over 5 years with an 81. 83% increase rom 2003 to 2007, this has led to an increase in Profit before Interest and Tax (EBIT) of 147. 34%. 2007 witnessed an increase in revenue of 15. 99% and subsequent increase in EBIT of 21. 15%. 2003 to 2007 has been a period of sustained growth for the company due t o an increase brand awareness, increase in market share (as international markets such as the Asian markets flourished) and furthermore a shift in attitude towards the benefits of complementary medicines. Source: Blackmores Annual Report 2007 2003 was an unparalleled year in the area of complementary medicines due to the Pan Pharmaceutical Crisis whereby a number of Blackmores’ competitor’s products were removed from stores. Blackmores’ products were not directly affected by the recall and as a result, the company faced a significant increase in demand. The industry crisis caused sales to increase 14. 08% from 2002 to 2003. Earning per share has continually increased as has the amount of dividends paid to shareholders. Blackmores share price has steadily increased each year, finishing at $20. 56 as at the 30th June 2007. Figures: Aspect Huntley Similarly to Blackmores’ sales trend, total assets have grown considerably from 2004 to 2007. This is largely due to the development and construction of a new site in the Northern Beaches of Sydney, set for completion in mid-2008. Long-term debt has also increased from $10 million in 2006 to $15. 4 million in 2007. Net borrowings are at its highest since 2004, but unlike 2004 where Net Gearing was at 21. 81%, Net Debt Levels are now 12. 11%. Furthermore, the increase in gearing should not warrant a large increase in Blackmores’ riskiness as the funds are being used for investment purposes with the aim of streamling business activities and the clear intention of increasing profitability. Figures: Aspect Huntley Operating cash flows has increased to its highest ever levels in 2007 to $16. 79 million. This is a result of increased revenues and cash receipts from its customers. The large investment spending from acquisitions and the purchase of operating assets in 2007 was partly offset by the greater increase in customer receipts. Investment Cash Flows grew to an outflow of $7. 58 million in 2007. This is directly related to the purchase and investment in property and production infrastructure. Interestingly, Blackmores’ purchased $13. 61 million of production, parts and equipment in 2006 however this was offset with the sale of $9. 8 million of non-current assets. 2006 and 2007 witnessed a combined total borrowing of $31. 88 million which was offset by a combined total repayment of $22. 50 million. Furthermore, dividends grew to over $10 million for the first time. Du Pont Analysis The Du Pont Analysis system aims to provide a measure of a firms return on its total assets. The return on total assets can be made up of the net profit margin that is depicted on the left hand side of the chart, and the total asset turnover of a firm, which is depicted on the right hand side of the chart. The formula for calculating a firm’s total return on assets is: (Net profit/Total asset)= (Net profit/Net sales) x (Net sales/Total assets) According to this formula Blackmores’ historic return on assets is: Source: Aspect Huntley In 2007, Blackmores has made a 20. 41% return on its total asset base. Return on Equity (ROE) The Return on Equity (ROE) measures Blackmores’ return from the capital raised by its shareholders equity. This ratio can be broken into the contributing factors of a firms ROE. Du Pont ROE analysis distinguishes between the results of a firm’s decisions regarding operating and financial leverage, which is accomplished by measuring the underlying determinants of the return of assets used by separating the effects of the amount of debt used by the firm from the cash flow implications of that chosen amount of debt. The Du Pont ROE framework is as below: We have chosen to compare Blackmores (BKL) with two of its closest competitors in the industry of complementary medicines. When deciding upon Blackmores most relevant competitors we took into consideration opposition products that consumers would directly compare against, when purchasing from supermarkets and retail outlets. A summary of the companies are outlined below: Symbion Health Limited Symbion Health Limited formally Mayne Group Limited, is a health-care focused company comprising of 5 divisions, medical centres, imaging, pharmacy services and Symbion consumer services. Symbion complementary and consumer brands include Natures Own, Cenovis, Golden Glow, Bio Organics, Natures Nutrition, Bullivants and Vitelle. Symbion Health Limited provides wholesale distribution of pharmaceutical and healthcare product lines to around 3,000 retail pharmacies, as well as public and private hospitals. Its brands include Terry White Chemists and Chemmart. Furthermore, it is a provider of nutraceuticals (vitamin and mineral supplements) with over 1. 3 billion tablets and capsules produced annually. Sigma Pharmaceuticals Limited Sigma Pharmaceuticals Limited (SIP) is a developer of generic pharmaceutical products and a distributor of pharmaceuticals for pharmaceutical companies across Australia. Sigma Pharmaceuticals Limited is the new name of the company listed on the Australian Stock Exchange (ASX) following the merger between Sigma Company Limited and Arrow Pharmaceuticals Limited on 19 December 2005. The operation of a pharmaceutical business encompasses the manufacturing, development and distribution of own branded and contract over the counter, prescription and generic pharmaceutical products for the Australian and overseas markets. Sigma’s product range includes Herron, Amcal, Chemist Own and all Guardian generic products. Sigma Company Limited was founded by two Melbourne pharmacists in 1912 and aims to be the leading Australian pharmaceutical manufacturer and marketer, and the most efficient pharmaceutical wholesale distributor and retail banner group in Australia. Summary of Extended DuPont Analysis Year end 31st December, 2005 Total RevenueBlackmoresSymbion HealthSigma Pharmaceuticals EBIT/Sales13. 10%4. 51%5. 66% Sales/Total Assets227. 00%93. 88%112. 59% EBIT / Total Assets29. 86%4. 23%6. 37% Profit Before Tax / Total Assets28. 54%3. 69%5. 11% Total Assets / Total Equity193. 00%162. 58%154. 49% Profit Before Tax / Total Equity55. 32%6. 00%7. 74% Return on Equity38. 39%3. 32%5. 21% Inventory Turnover917. 97%918. 80%744. 56% Current Ratio1. 54%1. 12%1. 09% Gross Gearing Ratio21. 24%26. 79%20. 25% Asset Turnover Ratio227. 92%93. 89%103. 93% Summary of Extended DuPont Analysis Year end 31st December, 2006 Total RevenueBlackmoresSymbion HealthSigma Pharmaceuticals EBIT/Sales14. 09%4. 64%6. 12% Sales/Total Assets217. 71%159. 01%132. 69% EBIT / Total Assets30. 68%7. 37%8. 13% Profit Before Tax / Total Assets29. 80%3. 69%6. 50% Total Assets / Total Equity185. 59%264. 03%153. 86% Profit Before Tax / Total Equity55. 32%16. 45%10. 01% Return on Equity39. 28%-0. 06%7. 32% Inventory Turnover1031. 3%11122. 00%762. 25% Current Ratio2. 38%1. 09%1. 89% Gross Gearing Ratio27. 18%7339. 00%22. 73% Asset Turnover Ratio217. 83%15898. 00%103. 93% Summary of Extended DuPont Analysis Year end 31st December, 2007 Total RevenueBlackmoresSymbion HealthSigma Pharmaceuticals EBIT/Sales14. 25%4. 83%5. 27% Sales/Total Assets207. 45%171. 87%145. 44% EBIT / Total Assets29. 56%8. 30%7. 67% Profit Before Tax / Total Assets29. 43%6. 58%9. 11% Total Assets / Total Equity191. 26%254. 19%172. 48% Profit Before Tax / Total Equity56. 29%16. 72%-4. 09% Return on Equity38. 34%13. 32%6. 43% Inventory Turnover1134. 34%1368. 43861. 23% Current Ratio2. 52%1. 111. 82% Gross Gearing Ratio35. 41%68. 6639. 04% Asset Turnover Ratio207. 50%93. 89145. 45% EBIT / Sales This ratio calculates the operating profit margin of the business and reflects the rate of profit (before interest and tax) on sales. It also gives an insight into the relative cost structure of the firm. Blackmores’ EBIT / Sales ratio has grown slightly over the three year period in question returning 14. 25% in 2007. The other peers seem to be negatively performing with relatively low percentage figures. Sales / Total Assets This ratio represents total asset turnover, which indicates the effectiveness of the company’s use of its total asset base. Blackmores shows to be making quite effective use of its total asset base. Although this has decreased over the 3 year period, it is likely to increase upon completion of the new site. Both Symbion and Sigma have made large percentage gains, mainly due to also being in a development stage. EBIT / Total Assets This ratio represents operating profit relative to the firm’s total assets. It indicates the effectiveness of the company to generate profits from its asset base before allowing for the effects of financial leverage and taxation. Blackmores seems to be well established in their asset turnover as, again they financial figures seem to keep them much above the rest of their international peers with 29. 6% in 2007. Symbion overtook Sigma in 2007 with a 0. 93% gain. Profit before Tax / Total Assets This ratio represents return on assets prior to the distortion of taxes. Calculating return of assets prior to taxes is particularly relevant in this instance as we are comparing fi rms with international operations. Blackmores’ are producing higher returns in comparison to their asset base with 29. 43%. Their closest competition is Sigma with 9. 11%. Total Assets / Common Equity This ratio represents the financial leverage multiplier (FLM) which demonstrates how much a company has leveraged its shareholders equity (by raising debt) to build its asset base. A higher FLM implies higher financial risk and a greater risk to return for equity holders due to an increased portion in cash flows to debt holders. Profit before Tax / Common Equity This ratio represents the return to equity holders prior to the payment of tax. Blackmores is returning a considerable amount of their profit to equity holders in comparison to their peers with 56. 29%. Return on Equity Return on Equity (ROE) is an important measure of the performance of a business as it indicates the rate of return that management has earned on capital provided by shareholders. This ratio can be broken into the contributing factors of firms ROE. Blackmores have a significantly higher return on equity than any of their other international peers, recording a current ROE of 38. 34%, in comparison to Symbion, with the next highest ROE of 13. 31%. It is a financially healthy sign that Blackmores’ growth in comparison with its peers is successfully being achieved. Inventory Turnover Ratio Inventory turnover aims to determine how productively the company has been utilising their inventory. This is particular important for firms such as Blackmores who rely heavily on the movement of inventory in order to produce income. Current Ratio Calculated by dividing current liabilities by current assets. This ratio is a useful measure of the short term debt-paying ability of the company. The higher the ratio, the more liquid the company is. Whilst a ratio of 2 or more was traditionally considered desirable many companies have reduced this in recent years, as operating cycles have shortened. It is more relevant to understand the ratio in the context of the sector average and the trend over the last few years. Blackmores’ current ratio has increased over the period while both Sigma’s and Symbion’s have reduced from 2005 to 2007. 5. Blackmores Share Valuation Assumptions Evaluation Timing All of our evaluations are as at the 8th May 2008, where our forecasts for 2008 and beyond incorporate the relevant data and market news of the past four years. Beta (? ) Beta is a standardised measure of systematic risk that relates the individual asset covariance to the variance of the market portfolio. Blackmores’ Beta is measured against the Australian market and was listed as 0. 671. The All Ordinaries, the primary Australian market index, was listed as 1. 092. Risk Free Rate (Rf) We have assumed the Australian Government 10 year bond rate as the relevant measure of risk free return. The current 10 year bond rate is 6. 19%2 on the 8th May 2008. Market Risk Premium (Rm Rf) The valuation of Blackmores using the CAPM approach requires the calculation of a market risk premium. This can be defined as the difference between the expected return on the market and the risk free rate. The market risk premium represents the compensation risk adverse investors require to be enticed into investing in the riskier market portfolio. Using the SP 200 index as our benchmark market portfolio, we have assessed the expected market return to be 11. 12% on the 8th May 2008. Based on this assumption, the market risk premium is 4. 93%. Expected market return can be defined as follows: Ke= Rf+ ? (Rm-Rf) Where: Rf = Risk Free Rate of Return ? = Beta (Rm-Rf) = Equity Risk Premium Based on Blackmores’ beta and the market risk premium, their cost of equity is equal to: Ke=6. 19%+0. 67(4. 93%) = 9. 4931% 1. Aspect Huntley FinAnalysis 08/05/2008 2. Comsec All Ords Index 08/05/2008 Dividend Discount Model (DDM) The dividend valuation model is a commonly used discounted cash flow model that assumes that the current value of a companies stock is equal to the present value of all future dividends. V=? (Dt/1+k) Where: V = Value of common stock Dt = Dividend during period t K = Required rate of return However this model does not take into account a company’s future growth prospects. As such, the DDM can be extended to assume that future dividends grow at a constant rate for an infinite period. In effect, this approach treats dividends as a growing annuity. V=? (Do (1+g)/ ke-g) Where Do = Dividend payment in the current period G = Expected growth rate of dividends Ke = required rate of return While this approach is not suitable to companies with varying rates of growth, it becomes a suitable valuation technique in the analysis of companies such as Blackmores, who have historically been able to maintain a relatively stable dividend growth rate. This stems from the first major assumption that the DDM, which intuitively concludes that dividends are steady, or grow indefinitely at a constant rate. However, even for the most historically proven steady, reliable, blue chip-type stocks, it can be a seemingly difficult task to forecast exactly what the dividend payment will be next year, let alone the preceding decade. In itself, the DDM attempts to demonstrate the underlying principle that a company is worth the sum of its discounted future cash flows. The question of reliability and accuracy of this means of cash flow measurement becomes an entire other question. The real challenge thus lies in ensuring the model remains in keeping as applicable as possible to reality, incorporating the most reliable and up-to-date information in assumption models. Blackmores’ Dividend Policy History Since listing on the stock exchange on 2 May 1985, Blackmores have paid dividends in each year. The payout ratio has remained comparatively stable throughout the past ten years, maintained at just below 90%. Dividend Forecasts Blackmores’ future dividend growth will heavily reflect the growth of its revenues. Despite the supernormal growth that has been observed over the past number of years, industry growth rates from prior years are not sustainable. Despite becoming an industry leader following the Pan Pharmaceuticals scandal in 2003, we believe that the market will mature with competition re-joining in the long-term (post 2013), thus reducing the market power held by Blackmores. In light of this, Blackmores is uniquely positioned to benefit from an ageing population and increasing health conscious consumers. Management has established a strong long-running reputation consistently providing shareholders with steady returns and growth. They will, therefore, continue to enjoy a healthy growth rate, however at a much lower, steady rate. It is forecast that over the next five years, an ageing population, increased popularity of alternate medicines and an increase in the Asian market growth, along with the strong and steady Australian currency, should allow the industry to maintain its credibility and maintain growth. Looking beyond 2012, these steady returns can again be maintained through a matured industry and large barriers to entry, making it difficult for competitors to penetrate the market. Substantial overseas gains may be eaten away due to the currency impact affecting these off-shore revenues. As a result, we believe Blackmores will grow going forward in a constant manner, with dividend growth rates eventually increasing in line with a constant-growth model. Utilising a constant growth model, we have split the stages of growth into three time periods. They are: To reflect and assist in most accurately assessing the sensitivity of changes to our valuation assumptions, we utilised the multi-stage model in our analysis. Multi Stage models take the DDM a step closer to reality by assuming that the company may experience differing growth phases in the future. Stock analysts build complex forecast models utilising many phases of differing growth to better reflect real prospects. By incorporating a Multi-Stage growth model into our sensitivity analysis, it essentially allows any changes to future company growth outside the constant growth model to become evident and the overall affect this will have on the forecasting of share prices. Considering our forecast dividend growth rates, we have applied them to the Dividend Discount Model (DDM) below: Based on our model Blackmores is valued at $21. 81, which is at a premium to the current market price of $19. 45 (05 May 2008). Therefore, according to the DDM Blackmores is considerably undervalued by the market, trading at just over 12% below our estimation. Sensitivity Analysis The DDM is sensitive to both the