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.