The $115,000,000 debt facility might provide the re-rate for AFJ. I like this company as is, and I'm still thinking about allocating more capital to it (just depends on timing, got engaged last weekend, so not sure how much that will put back my investing! - but beyond that) -
Beyond that you need to remember, this is a coy who didn't just have a successful rights issue at $1.12, but they were successfully able to sell off unused rights at $1.25! This was only a month ago, and although there is "regulalatory risk" the fact remains childcare is still always going to be in demand. I was watching something this week, forget what, but it was talking about childcare centres being too in demand, with parents being unable to get placements. The call went on, with a suggestion that they wanted childcare centres to work like public schools - where everyone has a right to go.
- This provides an interesting point:
Currently governments are trying to "privatise" public schooling, give the schools the cash and walk away. If preschool did become an entitlement, like public schooling, the system is already private, so it would essentially already meet the intended model.
CBA Price at posting:
$81.35 Sentiment: None Disclosure: Not Held
AFJ Price at posting:
$1.12 Sentiment: Buy Disclosure: Held
