super profits tax

Since the announcement of the super profits tax on miners we have now learnt that several of the large miners are planning on scrapping up and coming projects as they will no longer be feasible and funding would be harder to obtain.

I therefore cannot understand how SDL' share price can slump by around 25% since the annoucement especially since its project will not be affected by the TAX and funding should now be easier to obtain since it is going to put pressure on the supply side of IRON and if we believe previous reports by the CEO's of both BHP and RIO then demand for IRON is only going to get stronger.

Considering the iron price that SDL used in its projections is very conservative to the current price and with the hint of the cancelling of future domestic projects then one can only assume the iron price should further move north.

All sounds very simple, however what i think is the real picture here is more like the demand for IRON is going to slump quite dramatically in the short term until China gets its act together and shows that all of its past excesses are first met by DEMAND before we once again get fooled by its growth forecasts.

If i am wrong then the SDL should be surging ahead very shortly.