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.
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