Wednesday 31 May 2006

Why Anime is so cool...

I found this site randomly whilst procrastinating. Check out the anime and follow the link above to an anime gallery. Admitedly, at times it can be borderline pornographic, but at least they do it gracefully.

Now, ok the site above, its a teenagers site, fair enough. I understand your criticism... but its refreshing. Being surrounded by people who uphold such serious principle; hard work, dedication, sacrafices, power, success, intelligence, achievement... and who can be prone to not seeing the lighter side of life at times, it was refreshing.




So is Anime. I guess it proves a rather post-modern point that the world is meant to beautiful. Get some Anime in your life.

Posts from Sth America

Keep your eyes on this spot for posts from South America!

I have given Ange and Bryan full access to post some news on the blog to let people from home know how they are going and what crazy adventures they have been upto. Time to face facts really, those overseas are bound to have more fun then those stuck at home! Holiday is where the hearts at! regardless of how much you get paid!

Oh, and For the two gallant adventurers in South America, the pressure is now on for you to actually post something - expecting audiences!

Tuesday 30 May 2006

Happy Birthday Pete and Fairwell Bryan!

Big weekend! I got to say hi to Bryan before he headed off to South America and even got down the pub for a few [too many] $3.5 Vodkas to celebrate Petes 21st! Even managed to get out to congratulate Herman on his 5 year delayed 21st!

So anyway, good time was had by all I'm sure. Apologies to anybody I offended on the weekend, it wasn't intentional I assure you. Next time I'll actually make sure Heath dances though... MWAHAHA.

Shout out to Reid AKA the Heartney Hearthrob AKKA The Calgary Cavalier, how is that chicken mate?

Monday 29 May 2006

Random Canadian Flashback #1

Location: The University of Regina, University of Regina-Main Campus, 3737 Wacana Pkwy, Regina, SK S4S 0A2, Canada
Had a delicious meal of spaghetti and creamy pumpkin sauce last night. When it came time to test if the spag was al donte I had a flash back to Canada. I was told the best way to test if spaghetti was cooked, was to throw it against the fridge. If it sticks, its cooked. How can you not trust the beautiful daughter of a chef? Anyway, its true. Try it some time.

Random being the key word. Ahhhh, Good times. End of story

Friday 26 May 2006

The next time you stereotype, think external validity.

External validity is a measure of how readily youc an generalise a statement or research. High external validity implies you can make a very broad statement.

Technically we would say you have high external validity if you are basing your statement on a large number of observations. For example, if the caravan you buy from a pikey doesn't make it out the gate, and its the only thing you have ever bought from a pikey, and you claim that all Pikeys are thieving dishonest con artists, your statement has very low external validity.

On the other hand a consumer report which collected a sample of 1,000 customer satisfaction reports from people who bought caravans from pikeys would have a much higher external validity.

So the next time you stereotype or generalise (as we are all [especially me] prone to do), think of exactly how many observations you have and consider your external validty.

Thursday 25 May 2006

Aid business

I was going to make this a rant about aid organisations and how dodgy they can be sometimes, but then i realized I need to think about this some more...

The article that got me thinking was written by Iman Muldoon and you can respond to his criticism of aid organisations portrayed in the November 2005 issue of 'The University of Technology Sydney magazine' U:, by emailing u@uts.edu.au.

Iman had a crack at a few aid organisations for over-paying visiting proffessionals to certain countries. An example given was that the UN requires all proffessionals to be flown business class for flights longer then 9 hours. Another example was that The International Bar Association paid a benefits package of around US$3000 a month for a professional to monitor legal developments in the country of Malawi, East Africa. So just where does your donation dollar go?

More importantly, how do we solve these problems? A solution proposed was that the professionals be sourced localy as much as possible, but often that is just not possible. So do we expect these professionals to make themselves available at less then market rates? Are they really needed? What do they do anyway?

Maybe thats a start. Aid organisations need to let people know whats going on. In this age of digital media it can't be that hard! Can anyone even name more then 5 serious aid organisations (not including Red cross and the Salvos)?

Anyway - checkout the following site to get an idea on how big the aid industry is: http://www.reliefweb.org and even have a look for a future job.

Please keep in mind that although a lot of these organisations are NPO, it is still within their best interestes to remain operating. Don't get me started on the church and how its not audited, not required to pay taxes or possibly not even required to fill a tax return... So, where does your donation dollar go?

Wednesday 24 May 2006

Accruals and AA.

What are accruals? I get asked this a alot these days and I'm amazed that I find it difficult to answer. But basicaly - its what accountants get paid for! :)

Formal definition: Accruals = Profit - Cashflow.

If you need a definition of profit - its covered in a previous post, go do some research. If you don't understand mathematics, accruals are what makes up the difference between profit and cashflow. The basic purpose of accruals is to ensure that the profit recorded for a given accounting period, actually relates to that period.

For example:

A construction company, Constructions R Us received a payment in advance of $1 Million on the 1st January 2006 for a building which is expected to take 1 year to complete. Construction commences on the 1st of January. At the 30th June 2006 half of the building is complete. $250,000 worth of material and labour has been used and paid for. $50,000 worth of concrete has been paid for and will be delivered next week. Assuming this is the only work done by Constructions R Us for the financial year ending 30th june 2006, how much Cash and Profit is earned?

Cash flow:
A.) Cash Receipts = $1,000,000
B.) Cash expenses = $250,000 + $50,000 = $(300,000)
C.) Cash Flow = $700,000 (A - B)

Profit:
A) Revenue = 1,000,000 / 2 = $500,000
B) Expenses = $250,000
C) Profit = $250,000 (A-B)

Accruals:
A.) Accrued Revenue = $500,000
B.) Deposits paid = $50,000
C.) Total accruals: $(450,000) (B-C)

Accrued Revenue is a liability - Constructions R Us owes the customer for work not yet done.
Deposit paid is an Asset - concrete company owes constructions R us $50,000 worth of concrete.

Tuesday 23 May 2006

Sorry you subject you all to more accounting horrors, but here are three of the theories underlying a series of papers labeled the 'anomaly' papers which I'm going to have a crack at trying to disprove.

Accrual Anomaly (AA):
Current level of accruals is negatively related to abnormal returns over the following year.
Therefore market fails to appreciate accrual component of earnings is less persistent than the cashflow component.
Consequently, market appears to overreact to earnings that contain a large accrual component.

Post-earnings announcement drift anomaly (PEAD):
Stock prices continue to drift in the direction of the initial price response to an earnings announcement (for up to 120 days).
Therefore market fails to fully appreciate and price the future earnings implications of current earnings surprises.

Income smoothing hypotheses:
When faced with the prospect of reporting exceptionally high (low) earnings, managers are likely to use income decreasing (increasing) accruals to reduce the magnitude of the earnings surprise.
In this circumstance, AA would be predicted to increase the PEAD:
Firms with large negative (positive) earnings surprises would be predicted to experience large negative (positive) abnormal returns, as would firms with large positive (negative) accruals.

Sunday 21 May 2006

Life as we know it

Its been a very interesting 2 weeks and I'm sure it'll be one of those periods in a persons life that changes who they are.

I wonder how people go about becoming who they are sometimes. I admit i have a habbit of being a bit pushy on the whole ambition front, and at times hypocrytical. I guess everybody has stages of high motivation and low motivation, times when they want to be a world changer and times when they would rather just live in a shack on the beach and go surfing everyday.

I have a little system that helps me keep changing and I hope improving who I am and providing me with challenges and incentives. Every now and again, when I'm day dreaming and looking at my wrold map (best present ever!), I'll write my daydream down on a scrap of paper and put it in an envelope. On the envelope I write a suitable title depending what the daydream was, for example; "Open this on completion of university" or "Read me when your sick of Sydney" and even "Thinking of having kids? Read me first!". Hehe.

In the last two weeks, I haven't written any new ideas down, but I got the feeling it might be time to open a new envelope, find a new direction. I'm still waiting for some pieces to fall into place in what could be described as an autobiographical infinity piece puzzle, but at least i think I've got the edges!

Moral of the story; I'm going to be out and about a bit more! So give me a call and I'll make more of an effort to catch up with you. I've been dissapointed by the disspersion of my friends, but I intend to make amends.

Hope you have all had a good weekend!

Wednesday 17 May 2006

An Angel was Taken Today

This is an extract from the website for the organisation in South America where Ange is working. I wanted to stop reading at a certain point, not having had a good week already, but it is something all of us living in Australia need to accept; we are lucky. Visit the site on the link above.
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In the beginning week of our second cycle of the program, Jacks (my assistant) and myself are standing talking to the director about classes when a father of some of our students walks in. We overhear him talking about how his children wouldn't be able to attend class this week because his other son, 1 year and 11 months, was in the hospital and was really sick. His child in grade two therefore had to stay home and take care of the other little ones ( there are 8). Having heard this and knowing the situation that people in this very poor community face, we figured that perhaps we may be able to help. We asked the man what was wrong and he proceeded to tell us that his child was very sick because of malnutrition. We offered to go to the hospital and check out the situation to see what we could do. We were in no way prepared for what we were going to see. We knew the child was sick, but we didn't realize just how sick he was. We arrived at the hospital and had to go through the rigamarole of getting past the armed security guards seeing how it wasn't exactly visiting hours yet. Of course I had to be the pushy north american gringa to get by. Jacks and I are walking down the hallway, our stomachs becoming uneasy at the sight of all the sick little children in barren beds to the left and right of us. After having popped our heads in and out of the rooms we finally found whom we were looking for. We entered the room, the mother's back is towards us, and she is cradling her child, she turns her head to talk with us from the door. We walk towards her to get a closer look at the child, and as we stood before him Jacks and I both looked at each other truing to control our utter shock and disbelief. You know, I had seen it on t.v. on those world vision programs, I had seen it in pictures, and I had taught about it in the classroom, but in no way did that prepare me for such a sight. Right in front of my eyes there was this poor child, his belly tremendously swollen and rock hard, his sunken eyes barely responding, and his pencil thin neck struggling to sustain the weight of his head. I knelt down to speak to the child pretending as if he were any other, and it was so sad because I knew that he was only half there, half alive, hardly breathing, barely moving, and fighting the death that seemed to want to take him.

I touched his little feet, his belly, his face. All I wanted to do was cry, Jacks and I glance at each other giving the old 'you better not cry' look, we didn't need to make the situation any worse than it was. But still we had hope. I sent Jacks to chase down the doctors to find out what exactly the kid had other than the obvious starvation problem, and she came back with a list of 7 other problems that required about 8 different medications. The doctors said that with the medication, the child should slowly recuperate in about 1 to 2 months. Just then the father came in greeting and thanking us for coming. He had been out all morning trying to drum up enough money between neighbours and family to be able to afford just the medication for that day. We agreed that we would take care of the medication for the following days, weeks or months if needed be. However the doctor needed to check the baby each day in order to determine the next days perscription. So we decided to come back in the morning to check on the baby and then get the daily meds. As we leave the hospital room assuring the parents that we were going to do whatever we could, we reach the hallway and both burst into tears, while debriefing the situation. Later that night I couldn't help but talk about it with my friends and volunteers.
I proposed an open invitation to those who wanted to help to show up at the hospital the next morning. To my pleasant surprise the next morning several friends showed up; a pre-med student, a human rights activist, a psychologist, my volunteers and some close friends. Once again, trying to get through the gates, the armed guard asks us who we are here to see. We give him the name, and he tells us that the baby has died. We stand in shock...the doctors had just told us that with the right meds the baby would recover in one to two months...he tells us that we can probably find the parents in the emergency ward. We frantically go looking for them. First we see the mother, who immediately starts crying upon seeing us, (obviously poor people don't have the luxury of having counselling available to them let alone any kind of humane attention that greiving parents deserve). As I comfort her she tells me that her baby is dead. Then the father comes out wailing, I hold him in my arms just letting him cry and cry and cry. I felt really bad and other than just being there, there wasn't really anything I could do or say to make them feel better. Everyone is silently standing around us watching the entire scene. Once things calmed down a bit, they tell us that if the parents are to reclaim the body that they must pay 126 soles which for them might as well have been a million dollars, because that is like an impossible feat of saving for a lifetime. If their child has died due to starvation, it's because for one reason or another they simply don't have any money, so how the hell were they supposed to come up with 126 soles (about $40) on the spot. The reality is this, if you don't have money and your child is sick, it will die. The reality is that even if the constitution says that poor people who are unable to pay for healthcare shall receive the same medical attention as the rich, the government doesn't have the budget to support it. While it is true that this family and others like it could have received some kind of financial assistance, by the time they went through the red tape and proper channels, it is just too late. This is the reality for third world people. After lots of arguing about how unjust it was to ask such an amount from such poor people, we decided to just pay the bill so that these people could take their child home to bury him. Had we not paid the bill along with the mountain of other bills, it could have been ages before they gave them the body.

After about half a day, and seven people working on this case, we were sent round back to collect the body from the morgue. Jacks went in with the parents while I waited outside with the grandfather and the others who were still around. I can't begin to express the horror that happened next. It is a sight I will never ever forget. Out came the father crying uncontrollably holding his baby in a blood soaked blanket, as he uncovers him, to our terror we see this little baby who was alive yesterday, with dried blood on his face, and his eyes and mouth wide open. We were all frozen with horror!!! I'm standing there with the father in my arms and the baby in his. We are all freaking out by this point...the hospital just gave the baby to them like a useless piece of garbage, they didn't clean him up or shut his eyes or mouth, let alone provide a clean sheet for the baby, this is the treatment that poor people get, it is simply cruel and inhumane! So here we are standing on the street with this dead child, we hail a cab down so that they can take their baby home. Had we not shown up, they would have had to take a crowded combi (bus) because to pay for a cab would have been a weeks savings which they did not have. The father hugs me once more thanking us endlessly.

Standing in shock, we begin comforting each other.
The next day we visit their house, bringing them a supply of food, pay our respects to the family and say goodbye to the sweet innocent child that had been taken from them. His name was Angel and he was 1 year and 11 months old.

It is a sad story that happens several times a day. We kept asking ourselves, in a world of plenty why are more than half the worlds children dying of starvation. The distribution of wealth is UNJUST!!!! We can't continue living our luxurious lifestyles in the first world while our brothers and sisters are starving in the third world.

With the help of my friend Marita who is a human rights activist, Julio a politically active doctor and the media, we are filing a formal complaint against the hospital for its inefficiency and inhumane treatment towards poor people. Someone should be held responsible for the trauma that was incurred from their negligence. This is just one case that we happened to stumble upon, how many thousands more are there?!

Wednesday 10 May 2006

P/E and P/B: Lay terms and my thesis.

Price to Book Value (P/B) ratio is a measure of a firms price per share in the market (market value) to the firms Book Value per share (Accounting value of assets).
If the P/B ratio is greater then 1, then the markets (investors) value of the firm, is greater then the value of its assets. If the ratio is less then 1, then the market values the firm at less then its asset value.

Price to Earnings (P/E) ratio is measure of a firms price per share to the firms Earnings (Accounting value of profit).
If the ratio is greater then 1 then the market is valuing the firm at a multiple to its current earnings. This multiple is sometimes be used as an indicator of how much earnings a firm is expected to have over its life. If the ratio is less then 1 then the market values the firm at less than its current earnings.

It is very rare for a firm to have a P/E or a P/B of less then 1. The simplest reason for this is that the price per share of a company includes a value for the entire firm, not the book-value of assets or current earnings. No one knows all the factors that the market takes into account when it values a company. Individuals also value things differently, and the market is made up of different individuals. Hence, what may be cheap to some is expensive to others.

My thesis is very ambitiously going to try to capture some of these factors which firms may have in common given their P/E and P/B Quadrant. (eg High P/E and High P/B, Low P/E and low P/B, High P/E and Low P/B, Low P/E and High P/B).

Monday 8 May 2006

Micks 21st

I know it was a while ago now - but you should head over to Beths blogs to check-out the pics! Dunno how I ever became associated with such a sexy group of people!

Warning: Hot content. Themed pics: Business whoes and CEO's.

Wednesday 3 May 2006

Intro to Accounting

To help people undertand upcoming posts: An intro to accounting!

Accounting assumes an entity(firm, business, corporation, club etc) are made up of:

Balance sheet items:
Assets, Liabilities, Equity

Profit and loss items:
Revenue and Expenses.

The balance sheet is a snapshot, a photograph of a firms performance. It captures values for assets, liabilities and equity for one point in time. Assets are things you own, Liabilities things you owe and Equity is defined below.

The profit and loss is a video or movie of the firms performance. It captures changes in values of assets and liabilities over time which are known as revenues and expenses. The sum of the revenue and expenses is the profit (or loss if expenses are greater). Accumulated profits from successive accounting periods (financial year) are called Equity. Equity is a sum of profits at a point in time, and is hence recorded in the balance sheet.

Tuesday 2 May 2006

Patent pending part pwo:

Following on from the previous conversation, I received a lesson on the brain:

I'll arrive at reality one day. says:
Do you know how the brain records stuff?
Magda- i Finpan says:
well, we put everything we see in categories and store them first in our short-term memory, or working memory as the researcher like to call it now. Some things can end up in several categories, that leads to spreading activation. If u think of cat u think of either something in the same category like cat food or the opposite category like dog
I'll arrive at reality one day. says:
right...
Magda- i Finpan says: If you stored something after seeing it 5 times, that would be a study technique, and it would store unnecessary things like, mr larsson lives next to me, and there is 1987 trees on my way to uni etc. Plus, if u "force" the brain to store things after u've seen it 5 times, your long-term memory wolud be full so fast
I'll arrive at reality one day. says:
mmm, not much long term memory hey... I'm not so sure we would remember useless stuff if our brain had a capacity problem... because we seem to have a great nack of discarding useless stuff over time and remembering important things... and its all relative. My brother never knows where his matching socks are, but he could fill you in on the philosophies of Hercules or theories of Einstein no problems.
I'll arrive at reality one day. says:
Well, I guess if the process is efficient enough, you wouldn't need to store anything in your brain... you sure would be screwed if you lost your portable web-brain though! Hehe

Patent pending

I was struct by a molecule of enlightenment whilst procrastinating from doing my presentation paper tonight... It may be best understood in the following MSN conversation: (Cause I can't be bothered writting it out again!)

I'll arrive at reality one day says:
I like learning... but i wish it wasn't so hard!
I'll arrive at reality one day says:
I just had an awesome idea that would make loads and loads of money if it was possible! Our brain is essentially just a storage device right?
Magda- i Finpan says:
aha...
I'll arrive at reality one day says:
we have the ability to recall information, theories and memories instantly, if we remember them... From whatever we remembe, we add other bits of information we have in our head... and voila, you have a new idea or the solution to a novel problem...
Magda- i Finpan says:
right, so?
I'll arrive at reality one day. says:
We go through a very long learning process to get all that stuff inside our head right... so we can recall it instantly... when we need it.... wherever we need it....
Magda- i Finpan says:
yeah?
I'll arrive at reality one day. says:
So... really the world wide web, is like a massive brain, except it can't recall things instantly, and it doesn't sort our ideas for us... its an inefficient brain if you will. What we need... is a portable storage device... which has all the information on the web contained within it.... and we need to be able to connect it to our brain so that whenever we need a piece of information, our brain can sort through everything on the web, and provide us instantly with what we need. The best part is: Once you have got that piece of information, its in your brain -not on the web, kinda like a really big internet history! hehe. Of course this web-brain storage device would have to be wireless so you can update your brain with all the new ideas other people are coming up with.
Magda- i Finpan says:
aha! but how r u gonna do that?
I'll arrive at reality one day. says:
Well, teh brain is just a whole bunch of electronic nodes right? We just need to overlay the brain with a fine mesh which can transmit electronic pulses...
Magda- i Finpan says:
If we're gonna keep everything that comes in wouldnt that result in big giant heads since the brain grows to fit information?
I'll arrive at reality one day says: Hmm... but don't we not use like 80% of our brain? No - only store stuff you have used.... or maybe it could be two way - your brain is temporary storage, and if you use one piece of information more then say, 5 times - it gets stored! As I see it the problem is not connectivity, its compatability. How do we make the data on the web compatible with our brain...
Magda- i Finpan says: Hehe but listen, if it gets stored after seeing it 5 times, that would be a study technique, and it would store unnecessary things like, mr larsson lives next to me, and there is 1987 trees on my way to uni etc

PART 2 coming to a mentally unstable person near you soon!