The Motley Fool

Why the G8 Education Ltd share price is surging today

Childcare centre business G8 Education Ltd (ASX: GEM) topped the S&P/ASX 200 gainers leaderboard today after closing 5.5% higher at $2.51 despite it releasing no news to the market.

The Brisbane-based group has grown in the childcare centre space via an acquisitive strategy that used a mix of debt and capital raisings to fund acquisitions and roll them up into the G8 operating model.

The share price  jumped today on the back of reports in The Australian Financial Review that G8 may be a takeover target for any number of players in the Australian private equity industry.

Much of Australia’s childcare centre market has long been dominated by private equity owners who find the industry attractive thanks to its government support and the opportunity to drive cost savings in running the centres for profit.

The G8 share price took a hit last May when it reported that occupancy on a like-for-like basis at its centres was down 2.5% to 3% over the year-to-date 2018 period.

The group’s shares traded as high as $4.71 in 2017 and the big fall in valuation since is another factor that may be perking the interest of private equity groups

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Atlassian.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool writer Tom Richardson has no interest in G8 Education shares. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now