I don’t want to bring this up to much, mainly due to the fact that a good friend of mine has copped a pizzling with the ABC fiasco, but ABC Learning centres is gooooooonnnne!

It is a shame that a company with such a great monopoly on childcare in Australia would allow itself to get so riddled with debt that it can’t support itself. Unfortunately this is just another example of the ‘debt’s ok’ culture that grips people & companies all over the country (and world). Debt is acceptable in some situations but it is ridiculous in others.

ABC = Ludicrous

The following is a bit of a re-run from a post earlier this year. Eddy Groves will in all likelihood face criminal chargers at some stage. The following question remains unanswered and is one of that shareholders, banks and the government should demand an answer to.

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How is it that Eddy Groves former high flying corporate hero turned lame duck, on Friday the 7th of March 2008, was able to fly back into Australia and sell 12,165,301 ordinary shares for $2.1390488 per ordinary share?

Reviewing the total public share trading results for ABL (ABC’s stock ticker) for the entire trading period on Friday indicates that the share price never got past $1.75 per ordinary share. Who in their right mind would have paid 19% higher to purchase Mr Groves shares over those available on the stock market at a lower rate.

Possibly some back door deal done with a company/group interested in a position in ABC? If this is the case, are ordinary, off the street, shareholders allowed to do such deals?

Do any of you chief champs have any idea on the hard and fast rules here?