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ABS - ABC Learning Centres

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I wish this stock and CBH wouldn't go up and down at the same time.

I still feel that ABS will do well longer term.
 
UMike said:
I wish this stock and CBH wouldn't go up and down at the same time.

I still feel that ABS will do well longer term.
Click to expand...

UMIke
If ABS can't perform in this market, the most liquid, cash filled environment possible, then what makes you think it will do well long term??

I have said it before and I will say it again, this is both fundamentally and technical a weak company...

Technically, lower lows and lower highs.....

Fundamentally, the accounting is shonky and they have really poor returns....

It's a no brainer to me. The only thing I would say is that they have insto support, so this will prevent them from dropping too much.

Cheers
 
Its part of ABS movement. Its regualr higher top higher bottom. And comsec put valuation for that at around $9.5. Here is chart i attached for your reference. I found ABS got really good management they always outperform market.
 

Attachments

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I'm very much back into ABS.

Some whispers in the US market and relatively sound to positive results against tough times over there shall prove interesting.
 
In short the profits are skewed to the last half of 2007 so they are taking some short term pain for longer term gain. I believe the market has over reacted.

There are so many conflicting opinions (Some that I value) about the value of this company that I won't go too far into it.

insto support is a real positive imo.

Mike
 
phew! today's ann is a real relief. bought them at 7.20 thinking the budget should help them but they went down straight after that. someone in the market seems to know when i buy into a company because their sp goes down straight away
 
I have big moral issues with this company, and having had a closer look at their stafffing policies than most people are able to see, the ways they have achieved their bottom line are not sustainable. They have profited under Workchoices, but the bottom line will suffer under a future Labor Govt.
 
All Childcare providers pay their staff very little.

Closed at $7.53.

I wonder if it power on tomorrow or give up some of it's recent gains.
 
I wonder how it will go if they cut the 'baby allowance' in the future?
UMike said:
All Childcare providers pay their staff very little.
Click to expand...
I believe that the way you treat your staff flows on to the kids. Just look at the next level up in schools.
 
PureCoco said:
I wonder how it will go if they cut the 'baby allowance' in the future?
Click to expand...
I believe most of their earning are from overseas nowa days

PureCoco said:
I believe that the way you treat your staff flows on to the kids. Just look at the next level up in schools.
Click to expand...
Having a close connection with childcare centers I reckon some of the loveliest/talented people work in those places.

Pity they earn less than non-skilled production workers in a factory.
 


I agree Mike. 70% of their earings are from AU.

Not all childcare centres pay crap, but they all pay as little as they can get away with. You pay peanuts, you get monkeys.
My gripe isn't just with pay rates, but also with the levels of training and information that they give staff. There are plenty of illnesses that kids carry that are potentially very serious/fatal to pregnant mothers and unborn baby. Their duty of care with regards to infectious diseases is found wanting, but it also varies from place to place.

Another area of concern is the way they acquire new facilities. Quite a number are pre-existing facilities and in some cases old houses. Very little money is spent bringing these newly acquired facilities up to the level of purpose built ones. So if you have a choice, send your kid to a purpose built place!!!!!
 
Dammitt... I hate surprise share placements... There goes another chunk of value from my holdings..

Trading halt today while they flogg their placement to the big boys.
 
Bazmate said:
Dammitt... I hate surprise share placements... There goes another chunk of value from my holdings..

Trading halt today while they flogg their placement to the big boys.
Click to expand...

They are always out of cash!

thx

MS

Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS 27.0 35.2 45.7 54.7
DPS 15.0 18.0 22.5 27.0

EPS(c) PE Growth
Year Ending 30-06-07 35.2 20.6 30.4%
Year Ending 30-06-08 45.7 15.8 29.8%
 
Well, it's had another bounce of late after announcing a profit upgrade.....

I still say look at the cash flows - this is a Company writing cheques it cannot pay!!!

And what do you know - in the cookie jar again today I see!! Well, I don't blame them - gotta take your money when the money is there for the taking.... Shareholders are diluted again......

Still a dog in my mind.......

Cheers
 
This truly is turning into an awful business. They continue to raise capital to fund growth and in the process continue to lower returns on invested capital. Looking to raise up to 1 billion of capital ($600m debt & $400m equity) this time around.
 
ABS has one of the best non-resource stock EPS growth rates in Australia. My data has it on +60% FY07 and +40% FY08 - so who cares is their equity base increases? Also - the stock is priced to fail. Just look at the fwd PE's. If they pull off their US/UK strategy the stock will be revalued upwards. Just my worth
 
ABS sp has been performing extremely poor recently until Monday. Up over 7%.

Despite NAB and CBA decreasing their share holdings.
 

yes but cashflow, there was a danger of itbeing net -ve i think in the last results etc

Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS 27.0 34.5 44.4 52.7
DPS 15.0 18.0 22.5 27.0

EPS(c) PE Growth
Year Ending 30-06-07 34.5 19.9 27.8%
Year Ending 30-06-08 44.4 15.4 28.7%

Thanks

MS
 

This would be funny if it wasn't meant to be serious. Put simply the value of a company is the value of it's equity. This equity value is adjusted to take account of future growth and returns to shareholders. A company that has to consistently raise equity to fund growth and which achieves the sub-par returns on that equity such ABS has been doing for some time now is a poor business.

Also PE's are an indicator of price but have nothing to do with value.
 
Hi
Has any one looked in to the recent purchases by one of the directors on a large volume. Not once but few times.
Does he know something which market does not?
Or was it just to raise market expectation or ramping so that some quick money can be made.
I bought some and it went up in a couple of days. I am thinking to hold and then to loose, or to sell and then repent .
Any advise please?

Regards

Miner
 
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