the intention of creating new centres is not to stifle ABS but to encourage mums to return to work by providing childcare in their localised area where private operators would seen as unprofitable, the gov't relised that childcare is expensive therefore have increased their rebate from 30% to 50% an amount that I belief is too generous and an incentive that would put kids in childcare even if mums don't return to work! The single biggest listed ASX winner in this years budget is undoubtfully ABS and I wouldn't be surprised if ABS would be involved in some way if the creation of the new childcare centres is true.
The increase in rebate is a leading indicator of what will happen next and it shouldn't be long for ABS to come into fruition. I brought for long term and now that they have substantially mitigated their risk in the US and repaying loans their FY09 outlook should be rosier than ever.
Please remember their sp has dropped more than 80% from its high, oversold imho and we should instos buying back like NAB.
Good Luck All
ABS
a.b.c. learning centres limited
