correct me if im wrong but you got to feel for eddie groves...

correct me if im wrong but you got to feel for eddie groves here.

even though the half yearly profit was down, it was still $48 million for the half year (after paying interest on all loans). really dont know what all the panic is/was over, child care is not a business that demand will cease for anytime soon and the business had proven it was well and truely able to service its debt.

regardless we obviously are living in a different world now and we all have to get used to it. any company, no matter how profitable it is that carry's signifant debt is a huge risk.

so if the US deal goes through ABS have made $750 for a 60% stake of their US business alone. That still leaves 100% of their AUST, EUROPE & 40% of the US business, debt levels significantly reduced and a market cap for all the above of around $650 million. on face value ABS looks good value but as with AFG, CNP, MFS etc we have seen that anything can happen.

id rather be take a punt on ABS surviving than any financial stock in a similar situation simply because childcare is an essential business - someone will want a grab of this & worse case scenario there will be a bail out! and even if that fails, governments cannot allow a dominant player like ABS to go belly up leaving thousands of families stranded.

i have been wrong before & could possibly be wrong here but i dont think so. i think opportunity really is knocking here imho.