Kip Powick Posted April 11, 2004 Share Posted April 11, 2004 From Greener Hmmm, why would Mr.Kavafian be so pro WestJet and give Air Canada between 1-4 months to liquidation??? Have a look at one of his company's (Octagon stock purchase on Oct 1, 2003....) Go to "select transactions" near the top page 2... 1st October 2003 http://www.octagoncap.com/investment_banking.html Jacques H. Kavafian Aerospace and Leisure Analyst Octagon Capitol Corporation From Neo Mr. Kavafian is on record as seeing more potential in WestJet than Air Canada, and he's entitled to his opinion. I also think the public deserves to know if he and his employer had business dealings with WestJet in the recent past. That's not to say that such a thing would cloud Mr. Kavafian's judgment. But if you're doing a lot of underwriting business for a client and you go on to pillory your client's competition in public, it would probably be a good thing to let people know about that relationship. At least, that's what I think an ethical analyst would do. From seeker Interesting to note that in some interviews with analysts the interviewer will ask if they have any financial involvement with the companies they have discussed but JK is never asked about this. It seems pretty clear that if his statements about AC should end with "BTW the company I work for is involved in the promotion of Westjet and we have a significant financial interest in seeing that they are successful." It certainly appears unethical not to include some sort of disclosure. Link to comment Share on other sites More sharing options...
jkavafian Posted April 11, 2004 Share Posted April 11, 2004 Kip, I'll bite. Don't worry, there is no hidden agenda and what you discovered is no secret. Everytime I do an interview they ask me whether I own share or not either on the air or before the interview. You are presuming that because we may have an investment banking relationship with WestJet that somehow our vew on Air Canada is tainted. Instead, you should know that we choose the Companies with whom to establish investment banking relationship. Furthermore, without pretension, you will hardly find an airline financing in the past 13 years without my firm being involved in it. Air Canada is bankrupt and do you think it takes a rocket scientist to figure our that WestJet has better prospects that AC? I think you guys should have thicker skin. Business is for big boys, if you can't face criticism of the actual facts, then you live in dreamland. Instead of throwing insults you should look deeper at what I am saying and try to resolve it. I been down this path before with Canadian Airlines and we know how that movies ended. Link to comment Share on other sites More sharing options...
Kip Powick Posted April 11, 2004 Author Share Posted April 11, 2004 Instead of throwing insults you should look deeper at what I am saying and try to resolve it. I been down this path before with Canadian Airlines and we know how that movies ended Please elaborate where I, or any of the three individuals in my original post, "insulted" you. PS...I did not "presume" anything...I merely asked for a comment. Link to comment Share on other sites More sharing options...
Mitch Cronin Posted April 11, 2004 Share Posted April 11, 2004 Posted By: jkavafian Date: Mon, 29 Mar 2004, at 5:48:40 PM (emphasis added) " There is no way I could come up here and post an opinion if the firm that I work for may be involved in an advisory fashion with one or more of the companies. Whatever happens to AC does not change my life one bit except the fact that I will be holding worthless tickets to Japan this summer. " also Posted By: jkavafian Date: Mon, 29 Mar 2004, at 5:59:44 PM "Mitch, I re-read your post. You are implying that other have had the decency to declare their conflicts and that somehow I do not. You have no idea how our industry is regulated and the hastles we have to go through to avoid conflict of interest and so on. Maybe I am indecent and dishonest. I sign my name here because I want you guys to realize that your labour leaders are taking you down. Don't try to guess my motivation. You can do that later. Just do something about your company to save it. That is my only motivation." From the Octagon web site, under "select transactions": October 1, 2003 - WestJet Airlines Ltd. $150,010,500 Common Shares $24.25 per Common Share Hmmmm.... so, if AC "dies" it would have no effect on WJ stock value? Link to comment Share on other sites More sharing options...
jkavafian Posted April 11, 2004 Share Posted April 11, 2004 Sorry, I was refering to other posters below but I used your question to adrress them. Link to comment Share on other sites More sharing options...
Guest greener Posted April 11, 2004 Share Posted April 11, 2004 Thanks you for starting this thread Kip, Mr. Kavafian; I am just a "dumb" pilot as you implied in your posts above. But as a man, with integrity, I would never go on public television and say what you did. At least without making it crystal clear that the company that puts bread on my table is also holding a large chunk of the direct competition. May I suggest that anyone who is approached by the news from this moment for an "opinion" merely state: "I'm sorry, but my business is financially involved with Air Canada's main competitor in the Canadian market, WestJet. This precludes me from offering an un-biased clip for your show." Now doesn't that make one feel better? If not, don't respond, as I don't want to know you. Regards, Steve Green Link to comment Share on other sites More sharing options...
Guest neo Posted April 11, 2004 Share Posted April 11, 2004 It's funny, there must be a specific genetic makeup to stock analysts because they all squirm the same way when they get caught in behavior like this. Mr. Kavafian, just six months ago you and your employer co-managed a large ($150 million) placement of WestJet shares. Now you're on media, not promoting WestJet but publicly deriding WestJet's competition. Did you disclose to the audience your intimate business relationship with WestJet? Your claim of analytical impartiality because you do not own WestJet shares would not convince a ten year old child. Your firm's and your own income are interwoven with the business you've done with WestJet. Your claim that your analysis is not tainted is suspect because, among other things, you did not have the integrity to advise people up front of your business relationship with WestJet. Considering that your comments could have had a serious, negative impact on Air Canada's ability to successfully exit CCAA, and given your previous lucrative business association with Air Canada's competition, I don't think we've heard the last of you in the media. Link to comment Share on other sites More sharing options...
dagger Posted April 11, 2004 Share Posted April 11, 2004 neo, just email RobTV and complain Link to comment Share on other sites More sharing options...
Guest neo Posted April 11, 2004 Share Posted April 11, 2004 Good idea, dag. Perhaps the media that frequent AEF will also pick up on the story. I think it's newsworthy, especially given the public's interest in behavior of this sort. Link to comment Share on other sites More sharing options...
Guest M. McRae Posted April 11, 2004 Share Posted April 11, 2004 Neo, if you feel strongly enough to email ROB TV with a complaint, then you should also copy the CRTC and of course your MP. http://www.crtc.gc.ca Cheers Malcolm Link to comment Share on other sites More sharing options...
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