Monday, March 17, 2008

The art of borrowing sensibly

TO THE hard-working mums and dads who have children at ABC Learning Centres, I know from doing brekkie radio this week that many of you are worried.

So, what are the ramifications of the company's plummeting share price? There are none – at least none threaten childcare places.

However, CEO Eddy Groves can teach us some good lessons. Firstly how to avoid high-risk borrowing and secondly the right way to save for your kids' education, and finally let's look at his hair. What's going on with that?

Eddy and his key executives borrowed heavily against their shareholdings in the company, using their existing stock as security (otherwise known as a margin loan).



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