absolute disgrace

i am fast losing patience with this company.

just two months ago they said they would achieve eps of at least 41c per share. they clearly lied to the market back them, knowing full well 41c was not achievable.

the announcement is contradictory. first they say they will spend the full $137m on child care acquisitions, and then they say the delay in aquisitions will reduce eps. if they are spending the full amount, where is the delay in acqusitions?

also, eps of 34 - 36 equates to NPAT of about $170m - $180m

now abs earned $40m of NPAT in the first half, which means $130 - $140m NPAT from the second half.

however, $100m of this is the capital gain from selling the UK vouchers business

which means underlying earnings are $30 - $40m or 6 - 8cps which is an absolute disgrace.

as for the morgan stanley deal, see p 24 of today's afr. sale price will be lower, and the article hints the convertible notes will be issued on extremely unfavourable terms so dilution will be massive.