This is a mobile optimized page that loads fast, if you want to load the real page, click this text.

ABS - ABC Learning Centres

Jump to new

Jeez, you ever heard of paragraphs? It takes me longer than necessary to work out that you are talking utter rubbish.
 
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 ?
 
kloid said:
Jeez, you ever heard of paragraphs? It takes me longer than necessary to work out that you are talking utter rubbish.
Click to expand...

I agree... that was ramble that took me 5 mintues to make out what was actually being said - nothing.
 
ithatheekret said:
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 ?
Click to expand...

I believe the sale of US business is still under exclusive negotiation and will not be closed until end April.
 
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 ?
 

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.
 
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 .
 
Kat82 said:
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.
Click to expand...

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.
 
Nice increase on ABS today, ann at 3pm that they've sold off 60% of their US interest. Share price up 40 percent at close !!! Anyone got any views on whether this will drop or continue to grow?

marc
 
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!!
 
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.
 
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?
 
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.
 
MRC & Co said:
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.
Click to expand...

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.
 
Quiet the afternoon rally this afternoon. I can't find the reasons for this though.. Anyone got any theories?

Cheers
 
Lukeyz said:
Quiet the afternoon rally this afternoon. I can't find the reasons for this though.. Anyone got any theories?

Cheers
Click to expand...

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.
 
zzz to sell or not to sell, got a bit tied up in this, thinking ti liquididate and pump into some of those oil and iron ore stocks
 
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
 
You must log in or register to reply here.

Similar threads

April 2024 DDD
3 4 5
Replies
98
Views
9K
ducati916
R
21 Lessons in Investing
Replies
6
Views
3K
divs4ever
Rate My Picks
Replies
9
Views
5K
Trembling Hand
K
Developing Investment/Trading Plan
Replies
12
Views
7K
kermit345
K
E
Jumped in the trading deep end - thoughts on getting out and learning to swim
Replies
5
Views
5K
Frankie
F
Menu
Log in
Register
Cookies are required to use this site. You must accept them to continue using the site. Learn more...