"PP, you need to educate yourself regarding sovereign risk and what the term means."
Well, I'm certainly not claiming to be an expert here, but I do subscribe to the Fraser Report of Worldwide Sovereign Risk and based upon it, I feel very comfortable with my views.
I'd suggest you subscribe to it Peter111 it may well open your eyes. It's what the financial institutions utilise and makes Wikipedia look an elementary guide to basic theory.
Specifically I'd refer you to Table 2 which deals with "Uncertainty Concerning the Administration, Interpretation, and Enforcement of Existing Regulations".
You will notice that all Australian states are rated as more risky than in past surveys and guess what the culprit was...yep, mining tax!
As to Qld, 18% of respondents state that they would not invest in Qld and/or the government acts as a strong deterrent to investment. I'll bet this will rise in the next survey period.
As to the subject of Stradbroke Island...I make no comment on the specific lease itself...only to the manner in which the government has acted.
And this as I understand it is the issue of the Qld Resources Association.
It's all about process...not the specific lease itself or where it is situated.
But that's it for me on this thread...differing views are obvious and I'm not looking to convert anyone...merely stating a position.
CFE Price at posting:
56.0¢ Sentiment: Buy Disclosure: Held
