An Aussie in Japan

I am now a quarter of a century old

If I were a public company, and I lived one financial year...

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[Reuters] Earlier this week, Kallun Inc. celebrated ending the first quarter (1Q) of its corporate existence with share prices at an all-time high. Co-founding parent companies, Ma Inc. and Pa Inc., both major shareholders in the joint venture, were delighted with the progress of the corporation to date, and were positive about its future prospects. In reporting on the activites of Kallun Inc. for the 1Q, Mr. Willock (CEO) reflected on the high points and the low points since being made a public company. Recalling the early periods, when it was simply a small private company expanding under the auspices of Ma Inc., Mr. Willock stated that the increasing growth of Kallun Inc. necessitated its introduction into the public arena - having since doubled the size of its parent company.

As with any new venture, the first developmental stages of Kallun Inc. were troublesome. Its share value wasn't properly appreciated by the market place, though economists suggest that this was in fact due to its disgraceful toxic waste disposal methods. As time went on, it focused on and improved its communication with shareholders and stakeholders, and was effectively able to express its mission statement and both its short- and long- term goals to the marketplace. Although a noticable jump in share prices is clearly evident at this point, it was stymied by the lack of revenue. Although Ma Inc. and Pa Inc. provided the initial startup capital and paid all the expenses of Kallun Inc., the corporation was not particularly productive, instead focusing on Research and Development (R&D). The share price rose slowly but steadily, and dividend returns to shareholders were minimal and sporadic.

Marketplace observers note that the 1Q was primarily characterised by constant relocation. Indeed, the HQ of Kallun Inc. moved several times (20, in fact) in the 1Q, and although many observers originally suggested that this would have a negative impact on share prices, given regulatory disparities between states and countries, all now agree that this has prepared the corporation to be flexible, and it can easily adjust to new economic developments. The ultimate benefit to Kallun Inc. is that it is now competitive in the global arena.

Mr. Willock has tentatively announced the short-term plans of the corporation for the upcoming 2Q. With a view of exponentially increasing the revenue stream and vastly increasing the number of assets, the CEO argued that it is necessary to continue with a conservative approach for the immediate future - focusing on R&D, and improved and increased trading with potential partner corporations. Though, holistically, the global marketplace has become increasingly volatile with rival corporations attempting hostile takeovers, the CEO seems optimistic about the recent relocation of the HQ to Japan. "A new consumer base for Kallun Inc.'s service should improve the corporation's reputation globally", Mr. Willock said. He stressed that given the larger market in Japan, as opposed to Australia, it is necessary to focus on catering to a large consumer base. He stated that volume of trading is more important than the quality of the service at this stage of the corporations development cycle.

Despite this positive forecast, insiders suggest that the corporation will become insolvent during the second quarter (2Q), and will eventually turn to liquidation in the 3Q. Mr. Willock denied these rumours, claiming them to be "unsubstantiated rubbish". Shareholders seem to be confident that the corporation will see it to the end of the fiscal year with most, if not all, assets in tact. Economists suggest that investor confidence is based on reports that the corporation plans on establishing its own joint ventures in the 2Q, after a merger with a yet - to - be - announced partner corporation. These joint ventures would then act as guarantors for the fiscal stability of Kallun Inc., and provide a secure source of revenue should the share prices of the corporation drop below acceptable levels.

The final word goes to Mr. Willock. After having consumed much alcohol at the celebration dinner, and although he appeared to be hopelessly inebriated, he managed to collect himself and grip onto sobriety long enough to remind everyone at the party of his corporate motto...