ABS - ABC Learning Centres

[TheAbyss]

And what of the 1 in 4 children who go to an ABC Learning centre every week if ABC tumble? Govt would be pretty keen to see ABC stay operational in my view.


Not a holder, just posing a question.

 

[Prospector]

And what of the 1 in 4 children who go to an ABC Learning centre every week if ABC tumble? Govt would be pretty keen to see ABC stay operational in my view.


Not a holder, just posing a question.

They couldnt do anything to prop it up though - could they? Probably not worrying too many Government workers, don't they have their own child care arrangements? It is quite a big story I think and not just the share price either!

 

[Aussie2Aussie]

"Eddy Groves is a very smart and cluey guy (Ex Mckinsey) and the rumours of hedge fund shorting it to wash out the large margins on ABS has merit.."




Maybe smart, but he always reminds me of Carl Williams.

 

[benwex]

This feels like an eternity...

Notice recieved at 9.59, how long before the ASX need to make public???

What drama, as good as any episode of underbelly I have seen.

 

[Miner]

Something very strange.
In Commsec people wanted to sell at 85 cents.
Some one placed an order for 10 million shares at $2.14.
Trading halt without any announcement.

GOK (GOd only knows)

 

[TheAbyss]

Trading halt till friday. Interests in parts of the business, or we don't want to play anymore. Time out while we come up with something.

 

[benwex]

Well there you go...

Trading Halt while they evaluate asset sales or some sort of re structuring the business???

Why dont they just let the inevitable happen and let the market do what the market does, determine the value of a companies....

Lets see what the company can pull out of the fire now..

benwex

 

[nioka]

Why blame Groves for the share price. He didn't set the price,the market set the price and maybe he is right when he says the hedge funds are manipulating the price. It is always easy to look back and see the future but he built a business using credit which at the time was a sound thing to do. I never bought in because I thought the price was too high. I dislike hedge funds, they are parasites manipulating the market for nonproductive gains.

 

[benwex]

Two of the companies directors sold their bundle of shares and got smashed!!!

So lets see Eddy score card....

 

[ROE]

Something dodge going.. did anyone watch Lateline business last night?
Eddie seem very irritated.

He sound so much like Enron chief ..when people start dumping/shorting Enron stocks...he beef it up and said at this price it's a bargain and it's the short seller that drive the stocks down.

I'm not saying ABS is going under but this is how I see things.

If a decent company get hammer I don't know something like WOW, JB Hi-fi, DJS, AMP their chief would come out and cope it and quietly go on their way making more money for their share holders knowing their company is in good shape.

if something like MFS, Alco and ABS get the quack they blame it's short sellers and all sort of excuses why the share price is doing badly.
Hello!!! how about came out and said we F**K up we leverage too much, we are sorry, we should be sack let get back to the business of making money for share holders instead of blaming others for their bad judgment.

Amen

 

[nioka]

Two of the companies directors sold their bundle of shares and got smashed!!!

So lets see Eddy score card....

Maybe they had margin calls and had no choice. There was something on the news that Eddy probably had a margin call. Investing with money belonging to someone else has a very high risk as I'm sure many ASFers have found out recently.

 

[Prospector]

Maybe they had margin calls and had no choice. There was something on the news that Eddy probably had a margin call. Investing with money belonging to someone else has a very high risk as I'm sure many ASFers have found out recently.

Which is why I have said before, Directors of Companies should not have margin calls that impact on the shares of the companies they are directors of. First MFS, now this.

 

[ROE]

Good no sympathy, greed got to them.
Thinking they can make quick bucks leverage up.

Leverage works both ways not a one way street to riches.
1 way go to the moon the other way straight to hell

I do feel for mum and dad investors that got burned ... maybe they can now take conform the directors got burned too and go back to the core fundamental. and in the future stay away from these stocks.

 

[nioka]

Which is why I have said before, Directors of Companies should not have margin calls that impact on the shares of the companies they are directors of. First MFS, now this.

I definitely agree with you there. They put all the other shareholders at risk. Margin calls on directors shares should be outlawed. I gave it as a REASON for the dramatic fall not as an EXCUSE for the directors. However they acted within the rules as did the hedge funds. The rules are wrong.

 

[Prospector]

I definitely agree with you there. They put all the other shareholders at risk. Margin calls on directors shares should be outlawed. I gave it as a REASON for the dramatic fall not as an EXCUSE for the directors. However they acted within the rules as did the hedge funds. The rules are wrong.

Sorry Nioka, wasn't having a go at you about that, but yes, the rules are just so wrong and as you say, they put everyone else's shares at risk because of their greed. They are Directors of a Public Company - blind freddy can see this is a huge gap in the law that not only allows exploitation, but opens up huge vulnerabilities to the hapless investor. In one day, both MFS and ABS crashed, absolutely and with no warning. Fed by margin calls from the Directors. But the financial media never even seem to question that this is an issue. We aren't cleverer than them are we

 

[ouch]

HOW is the 2 million share sale on 22/2/08 @ 3.75 by the director legal? --- One might say it was a margin call, we'll never know. However how can a director be allowed to sell shares 3 days before a profit announcement? - Regardless of the mechanisms used to sell the shares its in the prohibited trading period. My worry is that these "margin loan" excuses are just that and the dodgy directors who are already taking too much in salaries will use them to sell shares during prohibited periods........ Can't wait for TWIGGY to catch onto them.... that'll make the FMG tradin gmore lively. (Not that twiggy ever releases negative FMG news anyway.)

 

[ouch]

Good no sympathy, greed got to them.
Thinking they can make quick bucks leverage up.

Leverage works both ways not a one way street to riches.
1 way go to the moon the other way straight to hell

I do feel for mum and dad investors that got burned ... maybe they can now take conform the directors got burned too and go back to the core fundamental. and in the future stay away from these stocks.

And how do you propose to know which stocks have directors that have done this?? By the time you find out its too late. They should be prohibited imo.

 

[Miner]

"Eddy Groves is a very smart and cluey guy (Ex Mckinsey) and the rumours of hedge fund shorting it to wash out the large margins on ABS has merit.."




Maybe smart, but he always reminds me of Carl Williams.

Good point.

However not every Harvard graduate turned out to be a successful businessperson and conversly not every successful businessman has a degree and not even ever stepped into Harvard campus. Mckinsey is a great company but the turnover from the company is also very high considering many of the smart people like Eddy goes to market to ruin others.
Bill Gates, Alan Bond, Buffet, Kerry Packer, James Packer, Kerry stokes, Andrew Forest - no one even thought to join Mckinsey in their life time.

So good example but Eddy will be a black spot of McKinsey exits and soon follow the crooks in jail. He will get away only because Australian justice system is very lenient on white collar crime unlike US justice system.

I am wondering what Keith Nelson in his Directors Trading and Insider newsletter will refer to the high vol purchase by Eddy and few others

 

[YOUNG_TRADER]

Jumping Jimminey Batman looks like there's some real trouble over here,


I heard a rumour it had something to do with hedge fund manipulation and stop losses, including the MD who had a very large geared postion in the company who is being stopped out today

Heard the same thing on AFG

Seems really dodgey to me

Looks like I heard right,

Amazing, I can't believe this is allowed, its so unfair to the founders, so so unfair, they build an empire and get screwed by ****ing hedge funds,

Well was a good trade for anyone who bought at the lows yesterday

 

[Prospector]

This absolutely stinks for the average investor:

http://www.news.com.au/business/story/0,23636,23284258-14334,00.html

ABC bosses forced to dump millions in shares

TWO ABC Learning directors have been forced to dump millions of dollars worth of shares in the company, before the stock was suspended from trade on the ASX this morning.

In two announcements to the market this morning, ABC director David Ryan revealed he had sold his entire stake of 249,000 shares.

Board member Martin Kemp offloaded a whopping 7.64 million shares, leaving him with 2.76 million of the company's stock.

Mr Ryan sold 249,101 shares yesterday at $1.89, netting a total of $472,046.

Mr Kemp has sold $16.8 million worth since Friday, offloading 2 million at $3.75 per share on February 22 and 5.6 million yesterday at $1.66 per share.

In a response to an ASX query regarding the company’s share price volatility yesterday, ABC Learning said its directors might be required to sell their holdings because of margin calls.