Jewish presence would add
credibility and the minority
ownership would be pres-
tigious from a social respon-
sibility point of view. These
public partnerships would
enhance opportunities for bet-
ter understanding of each
cultural group while pursu-
ing a very objective profit
motive.
The highly conservative
U.S. Supreme Court has
maintained special laws
regarding minority owner-
ship of media-related com-
panies. The message is clear
that minorities need some
privileges in order to
establish a level playing field.
The Small Business Ad-
ministration administers 8(a)
programs where a certain
allocation of government
funded projects must be con-
tracted to minorities. If such
companies were public, then
the public could take advan-
tage of the special oppor-
tunities set aside for
minorities. Dealmaking op-
portunities for a Jewish-back-
ed minority-controlled public
company would be greatly
aided by the powerful sym-
bolic union of these cultural
groups; and with good
management and competent
advice and counsel such com-
panies could be extremely
profitable and therefore ir-
resistible. They may also at-
tract other minorities or na-
tionalities such as the
Japanese who might find the
cultural union inviting. The
Japanese could bring tremen-
dous financial clout to
America's securities industry
as their own securities
markets have become
overpriced.
There are a number of corn-
pelling reasons to go public.
Technically speaking, cor-
porate cash flows are enhanc-
ed by earnings multiples. A
$1 million cash flow at a
multiple of 20 becomes a $20
million company. There is
also liquidity. A public com-
pany can be sold piecemeal
which gives ownership many
more options. For our pur-
poses, however, the principal
reason to go public is for
visibility.
Public companies are wide-
ly held by shareholders and
market makers. They are
more visible throughout the
country which impacts mar-
ketability. A properly
marketed minority-controlled
public company with govern-
ment-aided market maker
support should sell at a
higher multiple than its com-
petitors. Pension funds which
derive a percentage of their
money from minorities would
be encouraged to invest a
percentage in these corn-
panies. Large corporations
such as Coors, U.S. West, and
Martin-Marietta which
outreach to the minority com-
munity could be contacted to
provide financing for some
securities-related overhead
such as preparing quarterly
reports. Finally, once the
minority-controlled public
company has been establish-
ed, the NASD can be lobbied
to propose legislation that a
certain percentage of market
maker inventory must be
stock in minority-controlled
public companies.
The effect of a movement to
access the securities markets
for minority business capital
will be to provide oppor-
tunities for minorities to in-
vest in businesses which
represent them. Hopefully
many minority citizens and
many Jewish citizens will
make good capital gains from
small stock purchases; and
hopefully the participating
securities firms will use NSD
compliance as part of their
marketing so that there is no
repetition of the abuses that
were common to the "penny
stock" market. The success of
minority-controlled public
companies will build pride in
the minority community and
the Jewish community which
helped to build it. The final
effect will be to create a new
multi-billion dollar segment of
the securities industry.
There are thousands of
minority business owners
who are successful and
thousands more who could be
successful. With investment
from the Jewish business
community into minority-con-
trolled public companies,
America can maintain its pro-
minence as a capitalist coun-
try and its prestige as a na-
tion which provides oppor-
tunity. 0
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New Zealand (JTA) — The
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had a history of psychiatric
illness, has been committed
as a "special patient" to a
psychiatric hospital after the
Auckland jury took 15
minutes to decide that her il-
lness had been responsible
for the attack.
Defense testimony said
that Ms. Williamson is a
paranoid schizophrenic.
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THE DETROIT JEWISH NEWS
77