trading halt childcare centres australia , page-2

  1. 840 Posts.

    Palto,

    The following musings from Michael West in his Margin Call column in the Australian this morning, suggests all is not well.



    Just Kidding, Kids.

    THAT is surely enough titillation for one day. Onwards and upwards to child care then.

    How cruel, how inexorable is the business cycle? Here were Mikey Kroger and the boys from Child Care Centres Australia going veritably gangbusters with an $8.5 million capital raising upon the triumphant proclamation of a 46 child care centre acquisition when – shock, horror – along came a nasty profit warning and bit them square on the rear-quarters. Just jumped out of the blue it did. Mugged them.

    At least we think that's the case. The news hasn't been announced to the ASX as yet.

    But if it is the case, the lads are fair-dinkum victims of the cycle – how quickly it turns – that mini-micro cycle.

    And here are all these investors just sitting there like wood ducks, soaking up the new equity at $1.50 a share (the vendors took two-thirds cash, one-third equity – they'll be over the moon) when the cycle doggone went and bloody well turned on them!

    What an outrage! CCCA only just had its general meeting on the first of the month, 19 days ago.

    It's enough to make a grown man cry in his cornflakes.



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