opening price , page-38

"The quality of earnings from child care is among the best anywhere you can find in a business."

Well if you equate 6.5% ROE as the best earnings you can find you have no experience in business.

Don't expect the Rudd government to increase subsidies by a margin required to make the ROE acceptable.

BTW barriers to entry are very very low. Oil refining has a high barrier to entry. Childecare centres are mostly modified residential properties.

If you at $1.75 or less you are likely to get a good return of 20c or so per share i.e. 11% but there are significant uncertainties regarding the convertible notes and funding costs going forward.