Appears that every media outlet was reporting on G8 today.
The only one not mentioning the JH debacle was The Courier Mail.
The Courier Mail:
Fears that an oversupply of new Childcare centres would squeeze the number of children attending facilities helped weigh down industry giant G8 Education on Wednesday.
It followed a report from analysts at Morgan Stanley, who cut earnings forecasts for G8 by almost 15 per cent for the next two years.
"Normalised" profits should hit $91.5 million in 2018 and $115.8 million in 2019, they estimated, compared to $93 million result in 2017.
Morgan Stanley still expects occupancies levels to increase, but at a slower rate than initially expected.
One factor they highlighted was supply of centres increasing 10 per cent while demand was only rising 3 per cent industrywide, impacting on occupancies.
G8 managing director Gary Carroll told The Courier Mail that occupancy levels had not deteriorated since the last results, and even improved slightly.
"It's still a challenging operating environment" he said.
Motley Fool are reporting that Morgan Stanley analysts have downgraded the Childcare centre operator to an equal-weight (hold) rating and slashed the price target on its shares from $4.25 to a lowly $2.80.
The above, together with the media coverage regarding the charges against JH (bail reported at $200,000) created a perfect storm.
It took G8 almost 24 hours to release a statement about JH.
We know they read Hotcopper. Gary, get yourself a top notch media advisor. A well worded timely statement, released yesterday before the market closed may have limited the damage done today.
IMO & DYOR
GEM Price at posting:
$2.49 Sentiment: None Disclosure: Not Held
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