ABS - ABC Learning Centres
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http://www.abc.net.au/news/stories/2008/08/27/2347609.htm
Well said Mr Fast Eddy and his gambling at the cost of school kids
Pity he gets a jail free card and worse than a drug peddlar or a pedaphollic
No court of law will punish him excepting some cash fines
Well said Mr Fast Eddy and his gambling at the cost of school kids
Pity he gets a jail free card and worse than a drug peddlar or a pedaphollic
No court of law will punish him excepting some cash fines
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Are you for real? To compare some cash against a pedophile? Wake up to yourself.
Not to say i support any part of what has transpired however to compare it to what i consider the most heinous of crimes is grandstanding to say the least. Stick to the sharemarket for comparisons please.
mim168 - they are now overdue and facing a fine from ASIC for non-compliance with the listing rules. Eddie was quoted as saying he "wasn't sure when they would come out" and that "it's due to different accounting interpretation".
Given the restatements are expected to be material - the details around the different interpretations will make interesting reading - as will the outcomes.
Given the restatements are expected to be material - the details around the different interpretations will make interesting reading - as will the outcomes.
I've been in the bush too long it seems.
Actually, I went to uni with Simon Green, the audit partner at Pitcher Partners responsible for the ABC audit in past years.
No matter how large or small the audit firm was, all auditors must apply the same stardards. One can't use the excuse that you took on something too big for your firm to handle I'm afraid.
"End of a fairytale" at http://business.smh.com.au/business/end-of-a-fairytale-20080905-4amn.html?page=fullpage#contentSwap2
"Shares last traded at 54c, but Clime Asset Management's Roger Montgomery, a long-time ABC sceptic, the stock may be worth as little as 19c."
"Shares last traded at 54c, but Clime Asset Management's Roger Montgomery, a long-time ABC sceptic, the stock may be worth as little as 19c."
prawn_86
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Looks to be a long painful wait for holders.
Results not expected until the end of the month. Dodgy. I never did trust fast Eddy. I just didnt like the look of him, too sleazy.
http://www.news.com.au/business/story/0,27753,24317777-462,00.html
Results not expected until the end of the month. Dodgy. I never did trust fast Eddy. I just didnt like the look of him, too sleazy.
http://www.news.com.au/business/story/0,27753,24317777-462,00.html
UMike
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Well you can't get much more end of the month than now.
Tomorrow will be exactly a month since they last traded.
Anyway no matter when they start in can't be good news and there'll be just more red ink on my spead sheet.
Tomorrow will be exactly a month since they last traded.
Anyway no matter when they start in can't be good news and there'll be just more red ink on my spead sheet.
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Just reading that ABC learning is expected to go into receivership today. Glad i bailed from this one.
http://www.news.com.au/business/story/0,27753,24603471-462,00.html
ABC Learning, the childcare centre operator that looks after 100,000 Australian infants and toddlers, is today expected to be swept into receivership after months of escalating financial trouble.
It is understood the board of the debt-laden company will call in administrators, formally killing founder Eddy Groves's dream ofcreating a global childcare empire, The Australian reports.
ABC's bankers are then expected to demand the appointment of receivers, in a sign that Australian banks are losing patience with companies crippled by the global financial crisis.
Last night, banks including Westpac, the Commonwealth, NAB and St George appointed receivers to stricken investment firm Allco Finance Group - another victim of the credit crunch.
The Commonwealth is also the biggest creditor to ABC, which declined to comment last night.
http://www.news.com.au/business/story/0,27753,24603471-462,00.html
ABC Learning, the childcare centre operator that looks after 100,000 Australian infants and toddlers, is today expected to be swept into receivership after months of escalating financial trouble.
It is understood the board of the debt-laden company will call in administrators, formally killing founder Eddy Groves's dream ofcreating a global childcare empire, The Australian reports.
ABC's bankers are then expected to demand the appointment of receivers, in a sign that Australian banks are losing patience with companies crippled by the global financial crisis.
Last night, banks including Westpac, the Commonwealth, NAB and St George appointed receivers to stricken investment firm Allco Finance Group - another victim of the credit crunch.
The Commonwealth is also the biggest creditor to ABC, which declined to comment last night.
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That's gotta be the most un-surprising announcement of the year.
What WILL be interesting is how the thousands of ex-ABC child care centres will now cope in the aftermath. Presumably The Guv-Mint will offer guaranteed, no-risk truckload$ to the few alternative, much smaller companies to assist them to buy up the assets (ie a form of bailout to the sector)?
Condolences to those that held/hold shares in this dead dog.
Fortunately, I am not one.
aj
chops_a_must
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Or perhaps parents may actually have to pay full cost or even have to raise their own kids for once. Fancy that!
prawn_86
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Two 'top 200' companies in a day. ABS and AFG, its all happening
Good lesson in what not to do i guess.
Good lesson in what not to do i guess.
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Another aspect of this is the artificial bubble ABC created in the value of child care centres. ABC were buying every centre they could get their hands on no matter what the price.
Speculators were building centres in the hope of selling to ABC and achieving same. The value of centres owned by others everywhere went up accordingly. Did they use their new found values to borrow for additional centres, other purposes or expansions? What happens after the revaluation is applied with less b uyers available in a tighter credit market?
Where does this leave the other major players? Short term less value longer term very well if they have some capital to pick up some cheap centres.
Thoughts?
Speculators were building centres in the hope of selling to ABC and achieving same. The value of centres owned by others everywhere went up accordingly. Did they use their new found values to borrow for additional centres, other purposes or expansions? What happens after the revaluation is applied with less b uyers available in a tighter credit market?
Where does this leave the other major players? Short term less value longer term very well if they have some capital to pick up some cheap centres.
Thoughts?
UMike
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Well it hasn't happened yet.
Can't see why they can't trade out of this mess.
As if the creditors want it to go under? :roll:
Can't see why they can't trade out of this mess.
As if the creditors want it to go under? :roll:
Well when you cant meet your debt repayment, bank siege control of your business and call in the administrators.
The long they wait the worse it get and banks are not in the business of keeping thing going, they want their money back ASAP so they can lend it to the next guy and get interest on that.
When that happen kiss good buy to share holders, you get nothing back.
bank will get some or most of their money back and the rest they write it off as bad loans.
Sh*t happen, I dont own shares in ABS same was as I dont hold shares in BNB and Alco, Centro as their model is based entirely on debt and revaluation for profit. History proved this model NEVER works
When ABS buy a center say for 6 or 7 times earning and then revalue it at 15-20 times earning and called it profit that scare the hell out of me and that the end of me looking at ABS
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The way the business is run,(ABC) has NEVER made a profit, as per my earlier post.
The whole thing is a sham, when I looked at investing in this company due to its growth, I was appalled and could not believe why anyone would.
Childcare is a low margin game. Basically not-for-profit.
Australia is the only country in the world that ran this model.
There is no way income will cover operating cost including interest.
Assets are so overpriced it beggars belief.
Looked closely at childcare some years ago..they were Mom and Pop wages jobbies, who employ young girls at Mcdonalds rates.
It is totally uneconomic to look after babies!!
staff ratio is too high.
a dozen 4 yr olds in a sandpit with 1 supervisor is the only way to make money.
big changes coming, looking after babies is hard work, done for love, not money
