A bit of old news

  1. 2,111 Posts.
    SYDNEY, Oct 3 (Reuters) - Shares in newcomer Childcare
    Centres Australia Ltd surged on Thursday, delivering a 100
    percent gain for initial stakeholders, but dealers cautioned
    that
    rival ABC Learning Centres Ltd could be a better long-term
    bet.
    Childcare Centres rallied 64 cents, or 47
    percent,
    to A$2 in late afternoon trade, giving it a market
    capitalisation
    of about A$30 million ($16.2 million) after its debut on
    Wednesday at a 36 percent premium to its A$1 issue price.
    ABC Learning Centres , Australia's biggest daycare
    company which listed at A$2 a share in May 2001 and nearly
    doubled its profit to A$6.9 million in 2001/02, traded down
    2.7
    percent, or 39 cents, at A$14.01 in a slightly soft overall
    market.
    "ABC have been in it a long time. If people are putting two
    and two together and thinking that this will do what ABC has
    done, that's a bit of a dangerous comparison," said David
    Spry,
    analyst at F.W.Holst.
    "I'm not saying they won't get it right, but I think we
    need
    to just wait before we jump and pay A$2 a share," he said.
    Childcare Centres' initial public offering included 9
    million
    shares offered publicly and 6,956,500 offered to some vendors
    of
    childcare centres as the company consolidates into a total of
    30
    childcare centres in New South Wales, Queensland and Victoria.
    For the nine-month period to the end of 2002/03, Childcare
    Centres forecast a net profit of A$1.95 million from revenue
    of
    A$14.77 million.
    ($=A$1.85)
    ((Sydney newsroom 61-2 9373 1800, [email protected]))

    Closed 2.90. What is the value now and what will be the expected earnings, say in 3 months.

    i have many friends who r paying huge dollars for putting there kids there.

    Many must of taken profit today and yesterday to c in total amazment go out on such a high.

    hate to c where it might end up on Monday and weeks to come.

    Many im sure as myself were anxiously watching, trying to jump in on any weakness, but no chance.

    All watching with mouths open,seeing pushed over the top.

    Who game to pay up here, not me!
 
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