Rudd's Resource Super Profits Tax

A tax that won’t reach its targets

There’s been much said about the Rudd Government’s Resource Super Profits Tax (RSPT) in the media, by both the government and the mining companies. The RSPT is simply not going to achieve what its been designed to do, and in the process its going to cause a lot of harm to Australia. While I agree that the profits from Australia’s resources should largely be for Australians, this RSPT is completely wrong.

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Can these advertising companies survive?

There are 3 companies listed on the ASX in the advertising sector;  Photon Group (PGA), STW Communications (SGN) and Mitchell Communications (MCU). Photon and STW Comms are the 2 major companies, while Mitchell is a very small company. Given the recent performance of Photon and STW Comms, I have grave doubts whether they can continue to survive in their current forms. Both companies own a large number of separate businesses involved in marketing, advertising, web development, desktop publishing and similar activities. STW Comms  owns at least 75 different companies, while Photon owns at least 40.  Both companies have negative Net Tangible Assets, the largest portion of their assets are intangibles – mainly goodwill from their multiple acquisitions. While both companies have been increasing revenues significantly, shareholders are seeing less and less returns from both companies.

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