Share consolidation-A case of companies on the Lusaka stock exchange

It was a very exciting friday for me. I had been watching the stock market but this friday was something special. For the first time since I began watching the figures, a particular company’s stock had risen from ZMW0.61 per share to ZMW 30.5 (An amazing 4900% rise!). I immediately picked up the phone and began dialling and texting friends who had shares in this company at the time. Everyone could not believe the price rise. It was an exciting weekend until something burst the bubble.

The about 4900% increase in share price was not really a real increase. It was a share consolidation.. In simple terms, a share consolidation works as follows:

Imagine you have 100 shares in company A at ZMW 5 (Approx $1) per share. The total value of your investment is 100 x ZMW5 = ZMW 500 (Approx $100). In a share consolidation, your 100 shares would be converted to say 20 shares at a price of ZMW 25 (Approx $5) per share. Therefore if you just wake up (like I did on that day) and see a price of ZMW25 instead of ZMW5, please confirm with your stock brocker if it was not a share consolidation. That is how my bubble got burst on that exciting weekend.

2012 in review

The WordPress.com stats helper monkeys prepared a 2012 annual report for this blog.

Here’s an excerpt:

4,329 films were submitted to the 2012 Cannes Film Festival. This blog had 16,000 views in 2012. If each view were a film, this blog would power 4 Film Festivals

Click here to see the complete report.

Derivation of the formula for a permutation

I had a hard time trying to convince myself of the derivation of the formula
nPr = P(n, r) = n!/(n-r)!
After reading and re-reading the read work, here we are:

Since a permutation involves selecting r distinct items without replacement from n items and order is important,

P (n, r) = n.(n-1).(n-2). (n-3) …. (n-r+1)——————————– (1)

Notice the numbers reducing from n until they reach the number (n-r+1). This last term (n-r+1) avoids a zero in case n=r.

Since (n-r)! / (n-r)! = 1, multiplying the right hand side of
Equation (1) by (n-r)! / (n-r)! results in:

P (n, r) = [n.(n-1).(n-2).(n-3)…. (n-r+1)] X (n-r)! / (n-r)!———– (2)

Since (n-r)! = (n-r).(n-r-1)….(3)(2)(1)————————–(3)
Equation (2) becomes:

P (n, r)=[n .(n-1).(n-2)…. (n-r+1)] X [(n-r).(n-r-1)….(3)(2)(1) / (n-r).(n-r-1)….(3)(2)(1)]————————————(4)

A closer look at the numerator of Equation (4) shows that the numbers are reducing from n to 1. Here is the numerator again:
[n .(n-1).(n-2)…. (n-r+1)] X [(n-r).(n-r-1)….(3)(2)(1)

n-1 is 1 less than n and (n-r) is one less than (n-r+1) and so on until 1 which is less than 2 by one.

We can safely conclude therefore that the numerator = n! Since n! =n. (n-1).(n-2)…..(3).(2).(1)

Equation (4)’s denominator (n-r).(n-r-1)….(3)(2)(1) is in effect Equation (3) which equals (n-r)!.

Hence the numerator is n! and the denominator is (n-r)!
Meaning:

nPr = P(n, r) = n!/(n-r)!
Proved

Books I read to arrive at this:

Statistics for Business and Economics- Paul Newbold
Statistics for Business and Economics-Frank Tailoka

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AGE: SECOND ERASER OF POVERTY

Here is another eraser of poverty. However; unlike other rubbers, humanity has little or no control over this one. It comes with the passing of time. It is called age. The older you grow the more people you meet and the more you learn. Consequently, at a certain age, you would have networked and learnt enough to walk your way through success and out of poverty.

A certain wise man once told me that at a particular age, it is better to learn as much as you can. Teach yourself as many skills as you can so that by the time your sputnik moment arrives, you know enough to excel. Being a jack of all trades but a master at none also doesn’t help. One should carefully select and try out different skills at a tender age so that by the time they are older, they have already learnt what they are best at.

The above paragraphs are not a suggestion though that people should seat back and relax at certain ages. However, at every moment in time you have to fight off poverty using some right means. A teenager is most likely going to have to fight it by aiming to conquer ignorance. After nineteen, someone will want to earn as much experience as they can. If you are in a country with comparative advantage and are well placed yourself, you could even end up as successful as some billionaires of this century like Bill Gates and Mark Zuckerberg who by their mid twenties had made fortunes.

EDUCATION-ERASER OF THE POVERTY LINE.

About fifteen years ago, I used to see a six year old boy wake up early in the morning on each weekday, wear his safari suit which they called a uniform and walk a very long distance in the early morning breeze to reach school.

That sounds fine until you think hard about the design of the uniform, the harsh weather he used to endure and the distance to school. I can not describe the latter because I can not remember it well. However, no matter where you live or what season of the year it is, the weather at six in the morning is not anything you want to let a six year old walk through-especially in that outfit. The boy used to wear a short sleeved safari shirt. The pair of shorts were nothing short of perplexing. They could not even cover the little knees.

With the benefit of hindsight, I see him writing, reading, making complex calculations and teaching himself and others more. He is able to take advantage of the freedom to communicate because he has learnt how to do so in many different ways.

He has now been exposed to various topics in Mathematics, English, Commerce, Physics, Chemistry, Biology, Geography, History, Accounts, Finance and Economics just to mention a few.

With the people he meets through school, he has created networks of friends around the world. Many of these will end up as leaders in corporations and governments.

He is FREE to do as he wishes because he has LEARNT how to. Even when some people insult his achievement by telling him ‘education is nothing in this world’, he does not even bother because it is EDUCATION that has taught him that those people are trying to satisfy their empty egos.

It may and notice the use of the word MAY be true that education can not make you rich but it is also true that with all the benefits it comes with, it can make you avoid the poverty line.

You can help rub the thick poverty line by helping those close to you and beyond with EDUCATION. May heaven smile on you as you do so.

HERE IS AN ERASER:RUB THE POVERTY LINE.

“If tomorrow never comes” is a phrase that reminds me of the oblivion of an abandoned soul. It is not the fear of not seeing the light of the next day that is scary. It is rather the fear that despite the world having forgotten this poor soul, it lives with the hope that tomorrow will not come but it does. Those should be suprising thoughts,especially coming from a RELATIVELY well to do person who can cover the cost of writing an article.

Agony is being that poor fellow that statistics say lives below the poverty line. It is living on ‘less than a dollar a day’ while your next door neighbour is able to afford a full tank for his 318i Bavarian Motor Works (BMW) machine every single day. I think you are reading too fast. You need to slow down. Read the next three sentences slowly: Agony is living on less than a dollar a day. It is living on less than a dollar a day. I forgot one more thing-agony is living on less than a dollar a day. That is 30dollars a month. That is worth poping your eyes out in suprise.

How on earth can someone survive on less than 30dollars a month! Last time I checked, somebody could spend over 6dollars on lunch alone. Do not ask me who. Ask me where. Well, in the same country as that fellow who lives on less than a dollar a day. Actually, they are neighbours. I did not say they are in the same neighbourhood. I said they are neighbours. If teleportation could make it, move through the posh electric fence and you are in the better off fellow’s yard. Jump out and you are in a none fenced area planted with a shack the other fellow calls a house.

I am not here to tell you about the difference in the two styles of living. Otherwise I may be accused of ‘rumour mongering’. I am here to provide a list of some of the causes of such inequality:

1.Education levels.

2.Age.

3.Family background.

4.Marital status.

5.Discipline.

Watch this space for what roles these factors play in poverty alleviation and now that you know the erasers, the least you can do is rub that poverty line.

POVERTY-TOP THREE CAUSES

THE TOP THREE CAUSES OF POVERTY-CAUSE OR EFFECT?

There is usually a good amount of talk about poverty and poverty reduction in most developing societies. However, little if at all any attention is paid to the causes and hence the root of this scourge. This article aims to highlight the major causes of poverty so that instead of concentrating on how to reduce it, people can pay attention to the roots and perhaps uproot them before the ‘tree’ grows too big.

WHAT IS POVERTY

To start with, we need to know what poverty is. Many writers assert that there are two main types of poverty. These are absolute poverty and relative poverty.

(a) ABSOLUTE POVERTY

With absolute poverty people generally do not have what they need. They are short of basic foodstuff, shelter, clothing and adequate or sufficient health care.

(b) RELATIVE POVERTY

On the other hand just like beauty lies in the eyes of the beholder, poverty may be viewed to be a subjective term and what is poverty to someone may not be poverty to someone else. What is poverty under relative terms is viewed as being what some people lack in relation to other people. Under relative poverty measures, a mean level of income may be established under which a person may be considered to be living in poverty. Any one living above that level may be considered not to be living in poverty.

Whether it is absolute or relative poverty people refer to in any particular argument or conversation, there are certain general causes of poverty. Below are a list of the top three causes:

1. Illiteracy

Nelson Mandela once said, “Education is the most powerful weapon which you can use to change the world.” Another one that catches my attention is Victor Hugo’s saying that “He who opens a school door, closes a prison”. Without education people can not communicate with great effectiveness. They can not share ideas and are taken advantage of. For most people who have developed, they have learnt how to read, how to write numbers and to be disciplined. This has helped them share, innovate and get the best in life. The price; unfortunately, for these who have either refused education or been denied of it, is poverty.

2. Health

Without health, nothing can go well. People can not work, they can not learn and they have to spend huge amounts of money on reviving or trying to revive their health at the expense of other things. Scourges such as cancer and HIV/AIDS have for many years deprived poor people of other basic requirements. With better health, such people may have the opportunity to work harder and spend more on other things that could move them from poverty in absolute terms.

3. Income

Just like Michael Porter argues (in his diamond) that nations have competitive advantage so it is for individuals. A person may be better off in terms of revenue generation solely because of what country an individual is based in. This is the reason some people are always trying to leave the countries they are based in for ‘greener pastures’. If a country created the comparative advantage it needed to retain the best people, maybe just maybe its production capacity would improve and poverty would reduce-a better effect on the production possibility frontier.

The problem with the above causes is that they can also be effects. Whether causes or effects; they are major considerations in poverty and its reduction. This is an argument that would probably be an interesting area of research.

To contact the author-leave a comment and a response will follow. Please note that the email address being shown on other posts may be out of use.

IN THE BLINK OF AN EYE: A DEDICATION TO UNZA/OTHER STUDENTS AS THEY WRITE THEIR EXAMS

“Everything can change in the blink of an eye, but don’t worry God never blinks”- Unknown

When things are smooth, most people have the perception that ‘life is good.”They think that the world has no teeth. Their grades are sky rocketing, their continuous assessments are at the peak, their B.C just came in and their guardians just sent them some extra monies. For most, it is a time of celebration. The centre becomes their resting place, Arcades shopping complex their backyard garden and rooms of the opposite sex their second home. It is a life without limits for them. A few however, remember their mighty creator and remember to praise and thank Him for the blessings.

A life without limits does indeed have no limits. It can change just in the blink of an eye. In the blink of an eye; while at the centre, someone is hit with a bottle of their favourite beer. From a bottle of ‘black print’ they get a red scar that will really turn into a permanent black label with the passing of the seemingly limitless time. From a life without limits, someone spends days or months in Hospital. The sky rocketing C.A soon becomes meaningless. The ‘ever comforting and daring’ monks, bungwes, pals, exeys and momas are nowhere to dare and comfort. The examinations are nearing and the mighty senate will soon have to pass the rarely questionable verdict.

For most, those are the times when reality begins to sink in. The realisation that life has got teeth that can bite becomes a harsh real life experience. As people around celebrate, it becomes clear that the Bemba saying, “Ichalo lifupa, wakokota washa” (life is but a big bone which you can only bite and leave) is true. Soon, the bed ridden fellow will leave Hospital a wreched person and someone else will come in. For many people, finding themselves in such a situation seems to be the end of the world. They lose even their little faith in their mighty creator and decide to fully turn against Him. “Since He can not protect me from the bad things happening in my life, I will rebel against Him.”

A rich man by the name of Job who lived in the land of Uz went through tough experiences. Knowing God had given a lot of blessings to Job, Satan went to God and said, “Does Job fear God for nothing?” (Job 1:9) With that, the mighty creator allowed the devil to cast many afflictions of Job. However, the devoted servant was able to survive the temptation.

Today, a challenge comes to every one of us. Whether we are facing problems of our own making or problems we do not understand, let us remember that despite the fact that life can change in the blink of an eye, there is a superior being who never blinks unnecessarily. Therefore, He relentlessly watches over you to make sure your burdens are manageable.

I do not know who said it, I do not know how true but always remember-“Everything can change in the blink of an eye but God never blinks” So, He never changes.

Happy sessional period people!

HOW WE STAND ON THE SHOULDERS OF GIANTS

STANDING ON THE SHOULDERS OF GIANTS

“If I have seen a little farther it is by standing on the shoulders of Giants.”- Isaac Newton.

WHAT IS IT?

This is a very famous quote in the world of science. However, in the area of management, it is not as profound. Many have to date agreed that the general principle that the scientist was trying to bring out was that those living in later times seem to see better than those in the past. By using what was discovered in the past, we tend to make better decisions and seem to have more intellect than those in past times. Feed-forward is harder than feedback.

HOW DOES IT APPLY TO YOU?

1. IF YOU ARE IN AN AREA OF RESPONSIBILITY

If you are a manager in today’s world, this could mean the difference between success and failure. Noticing what has worked in the past and using it in the present while avoiding what did not work in the past is cardinal for securing the much needed success in today’s hypercompetitive business environment.

2. IN YOUR PERSONAL LIFE

For many of us, the challenge of seeing further and yet clearly is far greater than the duties or hurdles in our way. Think of a jungle. If you are inside it, chances are that you will spend more time finding your way through the puzzle than a person who is viewing it from the top using a map and campus. (i.e. a wider perspective). The wider perspective makes them seem to have better vision than their colleagues. It helps people set targets that are well informed and reduces the chances of huge variances.

3. IMPORTANCE

From the aforesaid, it is clear that standing on some giant is important for achieving great success. It helps you see further and enables you forecast with greater precision. Such precision can help in establishing goals that are not only attainable but also highly motivating. Remember there are three major types of standards for motivation purposes. There are basic (simple and very easy to attain) standards, attainable (challenging but manageable) standards and ideal (very tough and unattainable) standards. Basic standards are not motivating because they are too easy to achieve. Ideal standards are also de-motivating because they are too difficult or impossible to attain. Therefore, forecasting with precision can help in avoiding setting standards in these extreme ends.

HOW TO STAND ON GIANTS:

Whether we realise it or not, everyone has a ‘giant’ they either stand or wish to stand on-in a particular situation. It can be anyone or anything. It could be an ideology, person or skill. If it makes you see further than others; all else being equal, then it is your giant. When you use, you forecast better. That is how you stand on your giant.

However, not every giant is good for everyone. You must identify what best suits you and makes you achieve success with all the satisfaction. For many of us, this can be very challenging. For managers, taking advantage of this weakness could mean immeasurable success in your leadership role(s). If a person under your management does not seem to be standing on the right giant, your guidance and advice on the correct giant could create a very good rapport between you and the person if it later turns out that they made a good decision by following your advice.