tls, ncp and the banks

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    Extract from a SMH acticle this morning:

    In the 2003 year, Telstra's MVA declined by $524 million; News Corp's rose by $11.6 billion. (This is based on a measure called market value added, MVA, which Stern Stewart calculates as the premium of the market value of the company above invested capital). The difference is about expectations: News Corp's market value increased because analysts and investors reckon things are looking better and Rupert Murdoch has stopped wasting capital on acquisitions; Telstra's declined because they think its days of growth and high returns are over.

    Another point worth mentioning from the survey is that among the 148 companies other than Telstra and News, the top and bottom are both banks - Westpac and ANZ are first and second, NAB last and CBA 143rd.

    The difference seems to be prices paid for wealth management assets: NAB and CBA paid too much and destroyed capital.
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