Jeez, you ever heard of paragraphs? It takes me longer than necessary to work out that you are talking utter rubbish.
ABS - ABC Learning Centres
- Thread starter Lucstar
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Jeez, you ever heard of paragraphs? It takes me longer than necessary to work out that you are talking utter rubbish.
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Does anyone know whether Eddy and co. who paid off the $9M to Citi to stop legal action , did it with their own funds ? Or was it from the $700M sale of the US centre sales ?
I agree... that was ramble that took me 5 mintues to make out what was actually being said - nothing.
I believe the sale of US business is still under exclusive negotiation and will not be closed until end April.
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Thanks for that Kat . Do you know if the first installment has been paid yet ?
I've heard a mention that Eddy had secured a new line of credit as well , but has virtually lost control of the company to other shareholders .
Do you know if this is correct ?
I've heard a mention that Eddy had secured a new line of credit as well , but has virtually lost control of the company to other shareholders .
Do you know if this is correct ?
The deal is subject to MS securing the financing so I do not think there is any significant payment made to ABS. The deal risk is quite high given the current credit squeeze. ABS is down 14.5% today. I wonder why.
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Thanks again .
I'm just trying to get past a few mentions and square them off .
One I must admit puzzles me . Eddy said he had everything in ABS , I thought he had a nice slice of a private equity fund as well . Future Capital something .
I'm just trying to get past a few mentions and square them off .
One I must admit puzzles me . Eddy said he had everything in ABS , I thought he had a nice slice of a private equity fund as well . Future Capital something .
ABC Learning debt in question
By Liam Walsh and Josh Robertson
March 25, 2008 12:00am
http://www.news.com.au/business/story/0,23636,23427591-462,00.html
CHILDCARE business ABC Learning Centres might have come close to "breaching" a debt agreement, an analyst report has said ahead of a deadline for exclusive negotiations for a sale of US assets.
Speculation about whether ABC had remained within debt obligations was a factor which helped drive down its stock last month.
Some analysts have felt comfortable with statements from ABC, responsible for 2300 centres across four countries, about meeting debt covenants and there is speculation that hedge funds are trying to force down prices by spreading bad news.
Already-battered ABC shares dipped again on Thursday amid rumours that negotiations with US investment house Morgan Stanley for the partial sale of US childcare operations had ceased.
ABC last week reaffirmed talks were ongoing but yesterday could not confirm documentation would be finalised before an agreement with Morgan Stanley lapsed at 2pm Brisbane time today.
The $750 million deal was proposed after ABC surprised the market on February 25 with a fall in half-year profits.
ABC issued an update on February 26 to dispel speculation of breaching debt covenants.
Some analysts had found the profit result, released late in the afternoon, confusing.
Citigroup analysts, talking before ABC's debt statement, said one funding-ratio covenant appeared to have been breached but ABC might have calculated to keep it within agreements.
Citigroup said it would "seek clarity" but ABC co-founder Eddy Groves criticised the research and its release in a later Business Spectator interview.
"We're fine with our banks," he said.
Yet last week Patersons analysts stated: "Our calculations, although using loose assumptions on operating lease expenditure . . . reveal that the company was close to breaching their (funding ratio) debt covenant".
Patersons said ABC would not give detailed covenant calculations.
ABC declined to comment on Patersons' report while reaffirming past debt statements.
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Still have a $80-89m net loss for 07/08. No guide as to how this will improve over the short-term now that their growth / expansion has been affected.
Although change of directors and strategy might help it over the long-term, might struggle to head back towards the $7 days of joy.
However, Eddy's still in charge so anything could happen!!
Although change of directors and strategy might help it over the long-term, might struggle to head back towards the $7 days of joy.
However, Eddy's still in charge so anything could happen!!
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Mmmmn very strange couple of days up to $2 on the plethora of news yesterday, back down to $1.51 today. Amazing that you can have 35% - 25% fluctuation over 2 days. Perfect for day traders for which I dabble with CFD's (had a very nice day yesterday and didn't go back in today), but still worrying for long term investors. The big 3 ABS, CNP, and AFG are like yo yo's - predicting the flux and traders notion's in the credit crunch - will they make it won't they is a big decision for the long term investor.
Taking a line from ABS's performance over the last 2 days, maybe AFG will dive tomorrow after their surge today? Let's wait and see.
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have no idea why the price dropped by nearly 7% today, I can hardly find any news or updates about this share. Anyone can help?
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Supply>demand 
This stock looks horrible at the moment, just slowly trending downwards!
Notice of becoming a substantial holder released after close however, so may get some upward movement tomorrow.
This stock looks horrible at the moment, just slowly trending downwards!
Notice of becoming a substantial holder released after close however, so may get some upward movement tomorrow.
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Supply>demand
This stock looks horrible at the moment, just slowly trending downwards!
Notice of becoming a substantial holder released after close however, so may get some upward movement tomorrow.
Supply>Demand is due to the company's earning is greater than its debt?
I found 1.3 had been a strong supporting point for past few weeks, but looking at yesterday and today, sp penetrated through it so easily.
MLC buys 5.7m ABC Learning shares
http://www.businessspectator.com.au...ys-57m-ABC-Learning-shares-ELEYM?OpenDocument
More money from the government to pay for childcare is good news too
http://www.theaustralian.news.com.au/story/0,25197,23694600-643,00.html
Struggling childcare group ABC Learning is also expected to benefit from a $1.6 billion increase over the next four years in childcare rebates for out-of-pocket expenses. The aim is to help families with cost-of-living pressures and increased workforce participation.
ABC has begun a clean-out of its board and management following the 60 per cent sale of its US business to a private equity group, and it will now focus on its market-leading Australian business.
http://www.businessspectator.com.au...ys-57m-ABC-Learning-shares-ELEYM?OpenDocument
More money from the government to pay for childcare is good news too
http://www.theaustralian.news.com.au/story/0,25197,23694600-643,00.html
Struggling childcare group ABC Learning is also expected to benefit from a $1.6 billion increase over the next four years in childcare rebates for out-of-pocket expenses. The aim is to help families with cost-of-living pressures and increased workforce participation.
ABC has begun a clean-out of its board and management following the 60 per cent sale of its US business to a private equity group, and it will now focus on its market-leading Australian business.
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Quiet the afternoon rally this afternoon. I can't find the reasons for this though.. Anyone got any theories?
Cheers
Cheers
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Quiet the afternoon rally this afternoon. I can't find the reasons for this though.. Anyone got any theories?
Cheers
The budget was kind to them which would have been at least part of the reason if not all.
My opinion is that they are now undervalued however it will take some time for sentiment to shift plus they do have a $280m loss from the US to deal with.
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Nice 12c rally after the announcement of Sallyanne Atkinson ceasing to be a Director. I'm guessing that made a lot of people quiet a bit more confident with ABC Learning Centres.. Hopefully the rally can continue early next week..
Cheers
Cheers
