Why the selling?, page-21

Yes, Islay, but the activity test is not the reason for the decline. From MF, whom have been bullish, the Fools have changed their mind on GEM and moved from bullish conviction territory with previous articles to now bearish (presumably just based on the Groupthink from the Canaccord piece) see below
"G8 Education Ltd (ASX: GEM)
The cost of childcare is quite high. Depending on where you live and how many children you have, it can be more economical to have one parent stay at home as caregiver rather than have both parents working full time. Plus, if unemployment rises, a larger number of parents will be at home to take care of the children, reducing demand for this service.
Childcare might be ‘essential’ when both parents are working full time, but – government support notwithstanding – I’m not convinced that it is the kind of essential expense that will live on in a downturn."

The last comments from the Fool suggest a latch key Australian environment where the Federal Government has means tested the childcare of the working population of double income families into a "latch key" generation where they lose the "essential" expense due to the Government cutbacks.

The market seems to think so and has marked down GEM accordingly.