Islay, you are advising readers to avoid investing in companies that rely on government funding and are highly regulated... such as health care, aged care, and superannuation? (Past few weeks, the OZ govt pointed to super tax deductions as one of its largest subsidies).
Kohler may be right about industry uncertainty, but UBS (or possibly Deutsche Bank) cautioned investors not to get caught up in the debate, saying that the proposed gov't policies aren't going to roll the industry or parents. Here is the gov't's own words in its 2014 childcare funding report: "Since the collapse of ABC Learning Centres in 2008 and the actions undertaken by the Government to avert a crisis in child care supply the market has stabilised and we are seeing a period of sustained and controlled growth in a high quality market."
As with any investment, GEM has its own set of risks that investors need to be aware of and wary of. So DYOR.
GEM Price at posting:
$3.75 Sentiment: None Disclosure: Held
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