abs position, page-8

My 2c On ABC Learning in response to A few comments made here about them.

Ive heard the argument a few times about ABS and how their is no money in it and they will never make profits and market saturation.

I always liken them to Flight center. Flight center had a near monopolist market in Australia, so they went overseas and opened other brands to broaden their market share and increase profits. Options similar to these are always available to ABS.

Back in the 90's people took the view of travel agency much like they do childcare now. They believed their was no money in it and it would never generate really solid profits.

Every just seemed to brush of that ABS raised their rates 11% this year. Thats well above CPI and shows they are trying to bring some value back to the share holder.

Childcare isn't a luxury item. They are in some ways ressesion proof. Certainly they have funding / debit issues. However they where acciquring something in the order of 100 centres a year and building 100 a year in the previous years. Which clearing has been a big lesson for them about getting to big to quick.

As for those who question eddies motives. Remember this is a guy who sacrificed his entire wage and his wife sacrificed half of hers to get options at 92c which is above the SP. I'm sure if they had anything less then 100% faith in the company they would have not have done so.