labor burns telstra shareholders., page-3

The below post is my opinion;

I personally saw this one coming and bought put options to cover a telstra holding I was resposible for. If labor got in the plan was to exit telstra. If liberal got in I was going to sigh a breath of relief, sell the put option and watch the share price rise.

Labor does not respect private capital. They are happy to burn what they consider greedy private capitalists.

This leads me to one of Margaret Thatchers great quotes, "socialism is a great system until you run out of other peoples money".

Well through the condoning of ACCC (rogue regulator) wholesale access price determinations and the legislative screwing of telstra into submission labor has set up that big red warning sign to foreign and private investors. Do not invest your money in Australia unless you want to lose it!

They didn't stop at telecomms by also proposing a mining tax that takes none of the risk:reward ratio of exploration and mining ventures into consideration. Further, since most mining operations deliver skinny dividends and mostly retain profits to grow the business their tax was aimed at inhibiting the growth of the sector. Further, mining execs who chase a certain return on capital would have high-graded some of Australias best deposits - pulling their eyes out and turning 80 year operations into 10 year operations. Would labor have set up a mining oversight department to counteract this - probably. Tassie labor has talked about mandating that Tassie citizens connect to the NBN. Fortunately the bulk commodities of coal and iron are less susceptible to these high grading problems and the industries hopefully should be able to carry the burden.

The point is that this labor green philosophy always drives down private investment. Labor will need extra funds to cover their extra spending, new taxs will come. These new taxes will probably be tax grabs targeting other sectors or expanding on mining. This will further reduce foreign and private capital investment - And this is how the labor debt spiral always occurs.

This is the quickest I have seen labor get us in this position. Lets hope the independents have the sense to change sides.

For the record the put option position I was resposible for had stock assigned to it, though more telstra was purchased as I think the stock has shot below intrinsic value even with a labor government.

Disclaimer: the above post is not to be used for making any decisions it is my opinion. The above post has been made purely for entertainment purposes.

I have not stated a sentiment as who knows how low the labor party and ACCC can screw the telstra shareprice down?