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Oh dear the Henry tax has just killed my mining portfolio

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Nero64

Nero64

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23 August 2008
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I decided to buy today on good news. Turns out it was a good day to sell and boy did the selling come hard and fast. :banghead:

Anybody else get killed today?
 
You weren't the only one. I had luckly reduced down my portfolio by 70% over the last week and had a few shorts that nearly covered my longs which got hit hard.

Miners are deadmen walking at the moment with the majority showing no signs of strength and lots of selling pressure.

But what do you expect from a Labor Govnuts that only know two things :

1) How to spend money they dont have
2) How to increase taxes to cover point 1.

Go Labor.
 
Nero64 said:
I decided to buy today on good news. Turns out it was a good day to sell and boy did the selling come hard and fast. :banghead:

Anybody else get killed today?
Click to expand...

Yep, got out of Giralia, down 6.9%, and bought more Korab, up 6.02% :)

Shocker of a couple of days and the sooner this dopey gumment goes the better. Mighty p*ssed off.
 
There was good news today? Where?
Click to expand...

Coalworks (cwk) signs a farm in agreement with ITOCHU for Vickery South worth 11 Mill.

The problem was it was in a trading halt and missed yesterdays selling, so it got double today despite the news. Down %14.
 
Re: Oh dear the RUDD GOVERNMENT has just killed my mining portfolio

Henry didnt kill your portfolio Rudd did. SO much for the increase in Mining Tax to fund our super, mine fell $15,000 over last two days. Increasing the contributions to 12% can never make up for that. I am so :banghead:
 
Re: Oh dear the RUDD GOVERNMENT has just killed my mining portfolio

Did Henry mean for it to be levied all in one go or staggered over time to ultimaetly reach 40% (total tax take 55% with a corporate rate of 25%) ?

Subject to transitional arrangements, the new rent-based tax should apply to existing projects, replacing existing charging arrangements. The allocation of revenue and risks from the new tax should be negotiated between the Australian and State governments. A cash bidding system could also be adopted to supplement the resource rent tax and promote the efficient allocation of exploration rights.
Click to expand...

http://taxreview.treasury.gov.au/co...ions/papers/Final_Report_Part_1/chapter_6.htm
 
Tough day for me as well
Even my shares with projects overseas got smashed

Part of the bigger picture?
 
Although the super rate is proposed to increase to 12%, a majority of super funds would hold resource stocks and most would have taken a good battering the last few days. Increasing mining taxes would lead to lower dividends, which would also be bad news for super funds as they would then receive lower dividen payments. Seems the shareholders are also getting shafted with the miners.
 
Interest rates up yet again. Mining investors & everyone in the industry (surely including unions?) ROYALLY pissed at Rudd & co. War declared on Telstra shareholders. Stuffup after stuffup. It really is almost as if they want to lose the election.

I take heart in knowing that some of those affected voted for this.
 
um....... Can i just say a quick "harden the fark up "

This is the stock market folks . stocks go down also at times .......... IF one has a quick look at some charts a lot of the miners were already on there way down from way before this henry tax rubbish ..

At least no ones blaming the shorters this time :D

Anyone want to blame anyone for the stellar run a lot of the mining stocks have had for the last year ?
 
There's a bit of over-reaction happening here (and yes, I hold miners also).
This has to get through the Senate yet, and this is imo very unlikely to happen without significant modification, especially given the fight the mining industry is going to mount.

If we want to do a Pollyanna on this and find a positive, there will be quite a few investors out there in voting land who will be blaming Rudd & Co. for the fall in their shares combined with the rise in their mortgage rate.
Coming on the same day as the fairly dramatic fall in Rudd's approval rating, the government must be having the first tremors of panic.
 
Julia,

There's a bit of over-reaction happening here (and yes, I hold miners also).
Click to expand...

Why on Earth do you hold them?? There has been an accelerating decline happening for some time, as Nun said since well before the Henry report. China is tightening up credit, their market is falling, this is the big picture.

I have had some miners on my radar as possible buys but they keep breaking support, and look nothing like a buy in their present state. If they don't look like a buy, then why hold??

brty
 
Julia said:
There's a bit of over-reaction happening here (and yes, I hold miners also).
This has to get through the Senate yet, and this is imo very unlikely to happen without significant modification, especially given the fight the mining industry is going to mount.

If we want to do a Pollyanna on this and find a positive, there will be quite a few investors out there in voting land who will be blaming Rudd & Co. for the fall in their shares combined with the rise in their mortgage rate.
Coming on the same day as the fairly dramatic fall in Rudd's approval rating, the government must be having the first tremors of panic.
Click to expand...

Same here, Julia;
I was tempted to dump the lot - but then reconsidered:
What if KRudd does (yet another) backflip and "explains" that he never meant to be that harsh - the introduction to be staggered over 5 years, maybe delayed (like ETS) etc... The result may well be an instant support - especially of those miners that earn the biggest part of their profits Overseas. Did you hear "Prof" Palmer and Tony Sage in tonight's News?

Yes, I'll continue to diversify - even more now than previously. But slaughter my mining stocks in panic I won't.
 
pixel said:
Same here, Julia;
I was tempted to dump the lot - but then reconsidered:
What if KRudd does (yet another) backflip and "explains" that he never meant to be that harsh - the introduction to be staggered over 5 years, maybe delayed (like ETS) etc... The result may well be an instant support - especially of those miners that earn the biggest part of their profits Overseas. Did you hear "Prof" Palmer and Tony Sage in tonight's News?

Yes, I'll continue to diversify - even more now than previously. But slaughter my mining stocks in panic I won't.
Click to expand...

Also keep in mind right now its also China fears that are driving the miners down.
Massive liquidation by funds; not just pure HTR, its just contributory imo
 
Even if the super tax passed the senate, i thought it was due to start in 2012? Why would shareholders be selling off now?
 
lemontree said:
Even if the super tax passed the senate, i thought it was due to start in 2012? Why would shareholders be selling off now?
Click to expand...
Because it is now more probable that a company's ability to generate distributable earnings in the future has reduced. When people buy shares, they do so in order to generate a return in the future, if that return is now reasonably assessed to be less than it was before this additional tax became probable, then it makes sense that people are willing to pay less for it.
 

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