Investment Manager: If You Think The Coalition Will Win, Power Buy Shares In Salary Packaging

Photo: Getty/Stefan Postles

Forget putting a few dollars down on your team.

BT Investment Management portfolio manager Noel Webster has a great way of explaining the woes of salary packaging firm McMillan Shakespeare, whose shares plummeted on Kevin Rudd’s proposed changes to the FBT.

“McMillan becomes your ultimate election stock,” Webster told the Australian Financial Review.

“Instead of using Sportsbet or any of the other betting companies, you might as well have a bet on McMillan if you think the Coalition will win.”

When Rudd announced the change, aimed at paying for a faster move to a floating carbon price, the stock was put into a trading halt. A lot of its business is dependant on salary-sacrificed car packages.

When it started trading again on Thursday last week it fell 43% to $8.80. Opposition Leader Tony Abbott has said he would scrap Rudd’s plan.

Read more here.

Now read: Salary Packaging Company McMillan Shakespeare Got Absolutely Destroyed Today

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.