guys, we will definately get an update as to whats happenning in...

guys, we will definately get an update as to whats happenning in the USA this time round

the stock looks like its technically at a good point ( I cant see it going back down to 7.40s), and with possible good news coming re US biz, we could see the company back up over $8 within the next 2 weeks as I believe its due to report on the 26/2/07.

We hit 7.55 today and from chart we may go down to 7.50-52, but i think that theres a support on bar chart around the mid-late 7.50s and 7.60. If the US tanks ina major way it could go down into next support level, but looking at chart , i think its good buying around this level of support 7.55-60 support.

the short term moving avg has gone waaaaaaaaaay below the long-term and RSI is at a good level.

With 2 weeks till the report , LOOKOUT if the news re the US biz is positive.

Eddie the milkman usually delivers!

despite worries about the increase in equity , the stock has fallen from 8.80 to mid 7.50s , and lets not forget the co has acquired businesses that are operational and make money already and eddie will just aim to improve their efficiency and profitability , and in doing so will ADD TO THE COMPANYS EPS in the future.

did he pay too much???

did he take on too much too quick???

will he be able to increase US companys efficiency and profitability??

who knows.

What I do know is that the US biz is a large childcare outfit and already generates income and eddie will most likely improve its financials with his expertise. All they have to do is improve the ENROLMENTS a little and get the ABC brand name out there via an aggressive marketing campaign.

Obviously building the brand in US will take time, but these are 'easier' businesses to run (childcare - simple business; simpler model)

Fundamentals may look bad for now, but if you have faith that the milkman will have all businesses that have been taken over in US operating at near full capacity, then the fundamentals and EPS will start to look better.

Commonwealth bank has 14% of the company! Thats a lot of shares guys, and we're talking about the commonwealth bank here.

If eddie saw that the US biz wasnt doing well by now, he would STOP trying to expand and focus on improving the sitch there, but obviously he keeps going for more and the market and banks have no problem.

ABS themselves I believe have given the FORECASTS ON COMMSEC

thus they say 38 cents this yr and a whopping 50 cents in 08.

If they make 50.8 cents in '08, its got $10+ written all over it by that time!

I think around todays prices are a good entry point mid7.50s-7.60 are a good point of entry chart wise unless theres a drop to next level of support in the mid 40s which might happen if theres a lot of selling in the US.

In the next 2 weeks this seems a good trade for those betting on the report being decent and the US story unfolding well