17 May 2021
1300 794 893
Subscribe

Share plunge indicates Labor will win? Spare me.

Share plunge indicates Labor will win? Spare me.

Janine Perrett
26 July 2013

Well if ever you need evidence that the stockmarket really is not much more certain than throwing your money away at the track, you only need to look at the debacle over McMillan Shakespeare shares.


Just to recap, the listed salary packaging company was suspended last week because of uncertainty over the government's new FBT rules on leased cars which would affect their business. The fact that the Rudd announcement is in the never never, as in after an election they have a strong chance of losing, appears to mean little.


When the shares were finally re-listed Thursday, they plummeted some 50 per cent wiping half a billion dollars off the company's value. Just hold on a minute here. Firstly why were they re-listed given no one has a clue what's going on? Yes this is a policy announcement that might happen after an election Labor might not, no probably won't, win. Changes are not proposed to be made before the election as parliament isn't sitting. The Opposition has said it won't implement them ever; so it's a very long shot. That didn't stop the market over-reacting of course. Facts, don't let them get in the way
.

And as one broker pointed out, the company is not doing itself any favours by suspending all communication with the market, analysts, its own shareholders and the media until the situation becomes more clear. That would be after an election who knows when.


So my question again: how could the bozos at the ASX re-list the shares in this environment? A scandal, a disgrace and an informed market, my foot.


Worst of all, in light of all that, does the share plunge indicate the market actually thinks Labor will win? Spare me.

Click here to subscribe to the Switzer TV channel on YouTube and keep up to date with all of our shows.

Subscribe to our Switzer Daily newsletter and get our latest articles, videos and podcasts straight to your inbox!

Comments
Get the latest financial, business, and political expert commentary delivered to your inbox.

When you sign up, we will never give away or sell or barter or trade your email address.

And you can unsubscribe at any time!
Subscribe
1300 794 893
© 2006-2021 Switzer. All Rights Reserved. Australian Financial Services Licence Number 286531. 
homeshopping-cartphoneenvelopedollargraduation-cap linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram