What we need to all be aware of, is swine is a conglomerate and it charges the businesses it owns management fees for the revenue, not the profit or loss thus it makes money no matter what!
More revenue more $$$.
Have a look at wiki Advantages and disadvantages of Conglomerates and see how Hong Kong and its lack of oversight makes the big ticket disadvantages irrelevant.
Seems to be swine only practices this under the swine Pacific limited rather than John Swire & Sins
https://en.m.wikipedia.org/wiki/Conglomerate_(company)
DisadvantagesEdit
- The extra layers of management increase costs.[5]
- Accounting disclosure is less useful information, many numbers are disclosed grouped, rather than separately for each business. The complexity of a conglomerate's accounts make them harder for managers, investors and regulators to analyze, and makes it easier for management to hide issues.
- Conglomerates can trade at a discount to the overall individual value of their businesses because investors can achieve diversification on their own simply by purchasing multiple stocks. The whole is often worth less than the sum of its parts.
- Culture clashes can destroy value.[6]
[7]
- Inertia prevents development of innovation.[8]
- Lack of focus, and inability to manage unrelated businesses equally well.[9]
- Brand dilution where the brand loses its brand associations with a market segment, product area, or quality, price or cachet.
- too big to fail
Some cite the decreased cost of conglomerate stock (a phenomenon known as
conglomerate discount) as evidential of these disadvantages, while other traders believe this tendency to be a
market inefficiency, which undervalues the true strength of these stocks.
[10]
Edit: autocorrect fails