Sentiment is low for both of the large corporate child care providers.
There is no point in purchasing occupancy through acquisition if you cannot maintain or improve it.
Other points to consider:
How will Anchorage improve Affinity? If both corporates centres are in close proximity to each other (and in some areas they are) improvement in one could see reduced occupancy in its competitor.
How are they going to restructure to minimise the additional costs incurred with the ratio changes, in centres,from January 2016?
What are the projected occupancy levels for the beginning of 2016 and will steps be taken to minimise staff costs accordingly?
What are their plans for improving occupancy?
IMO sentiment could be improved with more transparent communication with shareholders, acknowledging the current concerns and providing solutions that will see occupancy in centres improved, profit increased, debt reduced and confidence with shareholders restored.
GEM Price at posting:
$2.98 Sentiment: None Disclosure: Not Held
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