DealFlowBlog

Aging Workforce

The week of my birthday it seems fitting that The Economist would publish an article entitled The Silver Tsunami. As always, The Economist offers thought provoking arguments and discussion. In North America two years from now, one in three people in the workforce will be over 50. Older still in Japan, Germany and aging workers are rapidly becoming an issue in China.

Things can be done to address this; according to The Economist, BMW has an assembly line with a team that demographically represents what its workforce will look like two decades from now. Special shoes, chairs and magnifying lenses were among the adjustments that made this team as productive as the other lines. If I recall correctly, unions in Germany have negotiated a certain amount of beer consumption per shift – if right, I wonder if that increases or decreases with age and also effects production?

If age does count, which countries will have younger workers with comparable education and how will this effect investment, or is it emerging economies that attract or retain entrepreneurs?

What I do know is that after decades of anyone able to leave Colombia, young well educated people are now staying and have important roles to play in their country. There for a week shooting an episode of DealFlow we met men and women in their 20s and 30s educated both in Colombia and abroad. They stay because there is opportunity; other generations before them did not.

The DealFlow audience is looking for stories about emerging markets. The episode we did in Malaysia included an interview with an Australian entrepreneur who has built a bio-fuel business there. His comment about Australia’s policies hindering entrepreneurship and the enterprising people willing to meet to discuss business day and night in Malaysia stuck with me. Now he was in his 60s....made me feel young!

Confessions of a Southern Girl Preparing to Ice Trek in the NWT.

“"This place is too cold for hell" – Shakespeare

It started out as a dare. I do not like the cold. In fact, I am a self-professed beach bunny, a champion surfer (in my mind) and was raised southern girl...I play tennis in my heels. After 15 years of living in Toronto, I finally bought a proper winter coat just this year and once and yes this is true -- I broke up with a man who bought me a down filled coat as a gift. I called it the ‘good-bye’ coat.

I haven’t told my business partner Fred nor have I called AVALON’s IR Manager Virginia – but I made a commitment last week to go to the Northwest Territories the week of January 18th. The terror of going north has caused me great anxiety and I can’t seem to get my lips to utter the words: I am heading north.

Described as adventurous and a high risk kind of gal, I could jump off of a cliff in Peru with Mr. Extreme and handle the outback of Armenia (correction, I threw up for 2 days), but for some reason, you toss in the cold variable and I call it an immediate pass. “X” called me on my so-called risk taking persona on DealFlow and asked me if I would join this French documentary crew as they “ice trek” or something equally as morose, ahem – I mean ‘adventurous’ in what I think I read were -45C temperatures excluding the wind and wind chill factor...

A year ago, maybe longer; AVALON (TSX: AVL) CEO Don Bubar said that “one way or another” he would get me to Thor Lake and that I would love it! Plus, of course -- needed to see where this "...flagship project, the 100%-owned Nechalacho Deposit, Thor Lake, NWT, is emerging as one of the largest undeveloped rare earth elements resources in the world."

I am blaming Don for coordinating this although I can’t prove it yet. Clearly I explained in January 2009 that my skills did not involve site visits to lakes named after gods like “Thor” and that I had seen the image of the fish that Dr. Berry had caught and that I was not meant to hang anyplace where one can catch a 100lb fish or whatever that thing was with the sharp fangs that is sitting across his lap...(as an aside, Dr. Berry told me at the Vancouver Cambridge House show that he would LOVE to return...told him if he caught anything larger he would be devoured...) --

Going to post this blog and see if anyone is reading...(excluding Ian of course who is always reading, watching...)

Colombia - Medellin

Medellin is a city of about 2.5 million nestled in a valley and divided by a river flowing roughly north and south. This was the first capital of Colombia when independence was first won from Spain (it is now Bogota). At that time Panama immediately west of Medellin was a state of the new Colombia. Strategically situated about 200 km from both Atlantic and Pacific coasts, Medellin is in the heart of the coffee region.

This is Juan Valdez country and the culture and work ethic reflects this. Coffee growers start the day early and so it is in Medellin. University lectures begin at 6:30AM; now that’s a reason to drink coffee!

It is or was also Pablo Escobar country. In the 1980s the city was the most dangerous in the world. People lived in fear as Escobar’s killers. That is no longer the case and Medellin is spending on infrastructure to bring the population together. The philosophy is based on the principal that the poor deserve the same level of schools and libraries as the rich.

I visited a neighbourhood on a steep hillside that is densely populated and poor. Access was first by electric Metro train that was modern and cleaner than the public transit systems in most North American and European cities I can think of. Next we went up the hill by cable car; the third stop at the top dropped us off at the library built to look like three cubes of black granite. Very impressive!

The streets were busy with people mingling, all part of the strategy of getting the communities separated by a deep river valley together. This is now bridged and the community facilities of library for study and soccer field for sport are located on either side.

A microfinance bank is located here and I also saw a retail bank branch in the community as we walked about. It took about two hours to get from this community to work in downtown Medellin twenty five years ago; that was before the train and cable car were built. Quality of life is improving for these industrious people.

A Premium World of Money.

"When a fellow says it ain't the money but the principle of the thing, it's the money."

…a pile of clothes, receipts and ‘stuff’ strewn across my bedroom floor -- time on the road: 11 days. This road tour, there is no denying the evidence of enjoying too many fabulous restaurants from Bogotá to Cartegena to Orlando…I am home from the World Money Show.

And yes, I said Orlando when referencing fine dining! Having had a world class dinner at Victoria & Albert’s at the Grand Floridian, I wish that I could justify a glass of the Russian Valley pinot noir that I overindulged in. Never mind, follow-ups at D’angelos, Narcooses, and Seasons52…tomorrow’s workload will humble me all too quickly.

Flight home from Orlando was relatively straightforward, I text messaged Fred this AM to let him know that DealFlow Malaysia was being fed through the CNBC Toronto affiliate this morning. I listen to the one entrepreneur explain how to make a revolution in one’s life and smile as he explains the benefit of endurance in making money.

Speaking of endurance, the Premium Exploration (TSX.V: PEM) IR team of Wilf Struck and Christine Kopr, along with me spent the last 3 days at the Orlando World Money Show. Ah, the World Money Show. Say what you will and many did, this is an excellent event (the one in Orlando at least) to meet people and talk not only about opportunity, but to listen to our financial pulse speak about their concerns and confidences on everything from the debt to the recent SEC porn scandal. Personally, I spent 3 days staring at the vitamins that you shake on your food and wondered why anyone would add this step to their cooking...

We spoke with, listened to and discussed Premium’s gold, silver, platinum and palladium explorations in Idaho, Montana and Mexico to over 300 people and highlights included our draw for a 10 oz bar of silver that was awarded to “Sparky” Dee. So congratulations Sparky from the Premium team and just for fun, I have compiled some quotes on money --

• “Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it makes one.” -- Benjamin Franklin
• "I believe that sex is one of the most beautiful, natural, wholesome things that money can buy." --Steve Martin
• “Formal education will make you a living; self-education will make you a fortune.” - Jim Rohn
• “Money, if it does not bring you happiness, will at least help you be miserable in comfort.” -- Helen Gurley Brown
• “Money often costs too much.” -- Ralph Waldo Emerson
• “Money will buy you a fine dog, but only love can make it wag its tail” -- Richard Friedman
• “Money, it turned out, was exactly like sex, you thought of nothing else if you didn't have it and thought of other things if you did.” -- James Arthur Baldwin
• “Money is usually attracted, not pursued.” -- Jim Rohn
• “Money is like love; it kills slowly and painfully the one who withholds it, and enlivens the other who turns it on his fellow man.” -- Kahlil Gibran
• "Money can't buy friends. But you can afford a better class of enemy." --Lord Mancroft

Here's to an exciting week!

Colombia - Swimsuit Entrepreneurs in Medellin

Not what I was expecting to find in Medellin at all, Agua Bendita Swimwear was founded in 2003 by Catalina Alvarez and Mariana Hinestroza. These two enterprising 20 something women design and sell fabulous swimwear all over the world.

Tracy interviewed Catalina Alvarez in her shop in the fashionable area of Medellin. We learned what young entrepreneurs willing to take some risk can achieve. In this case not only sales but the coveted cover shot of the Sports Illustrated swimsuit edition.
 
The Colombian business community is full of young well educated industrious people. They are engaged in a way that is refreshing. The work ethic in Medellin is born of the coffee rowing history of the region and an early start to the day of the coffee producer  extends through every aspect of life. Imagine have a 6:30AM university lecture and being locked out if you are late!

Medellin was a surprise on many fronts; what had been the most dangerous city in the world during the Pablo Escobar years in the 1980’s did not give me a minute of concern, even in one of the poorest districts.

Stay tuned for more.......

Colombia is Passion

In 2005 the Colombia is Passion program was launched in support of the renaissance of confidence in this country that had been one of the more dangerous places to live and to do business.

Colombia’s young well educate people are electing to stay to live and work in their country. Previous generations looked to leave if they could often taking wealth in addition to talent with them. The result is a young and enthusiastic workforce, at least in the cities we visited during the filming of the DealFlow Season finale.

The symbol is displayed proudly by Avianca, the leading South American airline and country’s flag carrier. Unlike some programs in other countries in which companies are paid to show logos of similar programs, research showed increased sales for companies displaying this design. As a result, the Colombia is Passion trademark generates revenue.

For more see Colombia is Passion.

Food in Bogota

Part of the fun in travel, either for business or pleasure, is experiencing local cuisine. At least for me; call me the travelling gourmand.

The DealFlow team ate very well everywhere in Colombia. In Bogota there were some memorable meals, some extravagant, others simple. Pressed for time at lunch one day we stopped at Hambuguesas El Corral in the G Zone.

El Corral serves gourmet hamburgers. There are many choices of burger including the filet mignon version I had. Choices of bread and toppings are also extensive. A bit of a surprise were familiar looking curly French fries. When I spotted a McCains carton later in the trip, I was told McCains is a large supplier of potato products to Colombia. All the way from Canada’s east coast....a little bit of home!

San Isidro Restaurant in Monserrate was another surprise. High atop the hillside overlooking Bogota this restaurant is accessed by cable car or funicular. A pianist played while we munched on oysters Rockefeller.

Club Colombia, also in the G Zone neighbourhood of our hotel was great. While our host amused us with tales of his youth in Cartagena, I had more fantastic fish. The atmosphere of this old building was charming and we were offered a table either inside or on the patio.

And now for Harry’s Bar; a favourite of the young good looking crowd (almost everyone in Colombia involved in business or government that we met falls into this category) it fills up at 9PM. The deep fried olives stuffed with roquefort are a must have. I ate there twice!

The Charleston Hotel Casa Medina provided breakfast each day in Bogota.
The house omelette was terrific, served of course with Colombian coffee. And yes, Juan Valdez is a brand and everywhere in Colombia there are Juan Valdez cafes and coffee outlets. I brought some home. Duty free, of course.

Colombia, the Fairy Tale?

“All I need is passion for a fairy tale and to find my toothbrush.” -- Tracy, Day 8 on the road (Bogota, Medillina, Cartegena and Orlando).

“Colombia is passion” said our Proexport liaison as he nearly killed me for 5 straight days with a rigorous schedule from as early as 4:30 to nearly midnight. He added the same message I heard in every city: “Tracy, the only risk in you coming to Colombia is the risk that you will never leave.” Ironically as I write this, I am sitting at the Grand Floridian in Disney World, where they not only understand this marketing methodology, but they arguably wrote the book on this. It’s called Cinderella as I stare at the castle from my window and wait for the evening fireworks.

Who else but Disney could make billions from something we do not need? Do we really need a book about a mouse that would benefit from a vocal coach, a sleeping princess with chronic fatigue syndrome or an awkward toy that flies around named Buzz?

Yes, we all know its passion that compels us to buy. With years in the music industry, I sold music and understood that we not only need this variable in our lives -- we crave it. It seems that we would rather b-u-y a piece of fantasy over a need because it appeals to the passion of life and satisfies something larger. Who wants a fish when they may find a pearl? (Steinbeck)

Ah passion…I consider as I search for my toothbrush, always hiding them in hotels after seeing an expose on housecleaners that seek revenge on guests by using them to clean toilets. Constantly forgetting where it’s hidden as it’s now day 8 on the road, its words like “passion” that makes poor Fred and many of my MBA-buds cross their eyes in confusion when I speak on marketing and sales -- is the only way to close a deal.

 
 

There, I said it; the undeniable secret to successful sales is passion. Sorry Ron, I liked your piece in WaterCooler Confessions and DealFlow blog on the value of fearlessness a couple of weeks back but believe that this is secondary. While fearlessness is certainly an asset, you can NOT close a deal unless you appeal to passion.

The Colombians know, understand and are marketing this…and this is why Colombia may single-handedly be one of the greatest success stories in this upcoming decade of any emerging market in the world. Coffee, Gold, Art, Oil and Architecture – 2 oceans, mountains and a desert or a population of 44 million is only the starting point I discovered. I had the distinct pleasure of meeting one after another smart, sharp, focused and driven young professional. Dynamic, educated and professional they are committed to building a global repositioning of Colombia and I have no doubt will succeed.

The weather here in Orlando is rainy and chilly as I prepare for the World Money Show for IR client Premium Exploration (TSX.V: PEM) through the end of the weekend. The World Money Show sells the allure of wealth and opportunities for all that attend. Orlando is the home of the fairy tale and I smile as I locate my toothbrush.

Capital Markets – BVC Colombian Securities Exchange

While in Bogota last week we visited the Bolsa de Valores de Colombia; Tracy interviewed Juan Pablo Cordoba Garces, President of the Exchange.

As the name implies, the exchange trades debt and derivative securities in addition to equities. The trading sessions are shorter than major markets ending at 1PM, but the performance of the index last year is worthy of note.

Look at the chart of the BVC Index for the past 12 months. The performance has been strong and with the tools at the Emerginvest.com site you can compare this to other indexes.

Colombia’s performance may in part be to the growing confidence within that country. The work force is young. After generations of Colombians leaving the country for security reasons, the current generation of well educated men and women are engaged in the process of leading the country’s government and small and medium enterprises.

The government officials we met such as the President’s counselor on the global economic crisis who was the author of the Colombian response to that situation, we in their 30’s. Tracy also interviewed an entrepreneur in her 20’s who with her business partner design and sell swimsuits in 35 countries. Her products have appeared on the cover of Sports Illustrated.

Avianca, the once near bankrupt country flag carrying airline is a privately owned company that has bonds trading on the BVC. German Efromovich, Avianca’s Chairman told me that market depth and liquidity was such that their issue was easily placed last year. The 10% sold last year of Ecopetrol, the country’s largest oil producer, was massively oversubscribed. Secondary listings are also starting with Pacific Rubiales Energy Corp. (TSX: PRE, BVC: PREC) being the first.

 

Bogota Transportation

TransMilenio is a commuter transportation system in the capital city of Bogota, Colombia. Transportation  in cities including Bogota and Colombia generally is an investment opportunity.

Bogota has a significant rush hour transportation need but has some interesting solutions including making all six lanes of the boulevard that ran outside of our hotel one way during  the evening peak traffic period.

The city has mountains on both sides; it was no surprise to see cable cars, aerial trams and a funicular all in use. We travelled to the highest point in the area to have lunch at Monserrate’s  Casa San Isidro by the same sort Swiss made tram that skiers know around the world. Monserrate is also a pilgrim shrine; some people walk up the mountain or even climb on their knees. Too bad we didn’t have time for Tracy to do that!

Private Public Partnerships (PPP) in toll roads were evident where we were in Colombia. PPP investments along with tax incentive and Legal Stability Contracts that ensure the terms of Foreign Direct Investment commitments make Colombia worth a look for significant projects. There are plans for a lot of transportation projects.