A.I.M. Users Bulletin Board

[Neil Scott]

ABC Collapse.

Not sure if it's made the news over there but Aussie child care company ABC Learning (ABS.AX) has become the latest victim of the sub prime fallout.
It had huge borrowings that had been used to buy up childcare centres over here (where it had about 30% of the market) and also in the U.S.
They were obviously paying big prices for under-performing assets and now it has all gone horribly wrong.
The directors were having their share sold to cover margin calls this forced the price down more and caused more selling.
The stock has been suspended now while potential rescue is looked into.
Wow there are land mines going off all over the place, step carefully.

Regards

Neil