JP MORGAN BUYS INTO ABC

The rise and rise of ABC Learning Centres just goes on and on. You will recall previous postings about this company, Australia’s largest private childcare operator which continues to report record profits and which recently was lucky enough to secure the services of former federal childcare minister, Larry Anthony, as one of its director. Now comes the news that JP Morgan Chase & Co has increased its holding and as of last Thursday owns 6.05 per cent of the company. Yes it is that JP Morgan, the investment bank created by the American plutocrat who famously said, “If I can’t take it with me, I’m not going”. He’s long gone, but the money remains and some of it is now finding its way into Aussie childcare. As previously reported, it’s a pretty good investment with Australian taxpayer funds of one million dollars A DAY going into the company, thus pretty much guaranteeing its cash flow. JP Morgan and related entities gave their address as Columbus, Ohio (that’s in the USA) when they notified the Australian Stock Exchange last Thursday (just as the market closed for Easter) that it was increasing its stake from the previous holding of 12,416,848 shares to 15,089,188 shares. JP Morgan started buying into ABC just two months ago, with an initial purchase of 200,00, and has been steadily increasing its stake to the current high levels. That’s quite a steep rate of acquisition in just two months. Still there’s a way to go before the Americans rival the holding of company founder Eddy Grove and his wife Le Nev Ann Grove who each own 18,495,000 shares. Shares closed at $5.45 on Thursday. JP Morgan obviously knows a good investment when it sees one even if Aussie childcare is a bit outside its usual sights.