ABC Learning (ABS) Stock Recommendation

Macquarie has remained cautious on the ABC Learning (ABS) stock recommending investors to wait for further evidence of success in the USA. At current levels, the stock looks cheap but execution risk remains, considering recent acquisitions of Children's Courtyard LP for US$66m, USA's 9th largest, a Texas based childcare company with 74 centres and the Learning Care Group acquisition in November 2005 for US$159m with around 330 owned centres and 130 franchised. The FY06e result is due on August 28.

ABC Learning Limited is listed on the Australian Stock Exchange (ASX) under stock code ABS. You can view their investor website here. The company provides formal child care services and education. Find out the meaning of the recommendations in this primer. Check your charts!