ABC Learning

[chaos theory]

Temasek took a 12% stake in ABC learning listed on the ASX at AUS $7.40 a share. The shares are now trading at 56 cents and ABC is under investigation by ASIC.

Suprisingly, I am not reading many reports on the investment in the Singapore press. Does anyone have any updates/ inside info about this investment strategy by Temasek?

[whysurprised?]

Why are you surprised? you've just come accross some of the evidence of the level freedom of press, freedom of speech, government accountability, transperancy and honesty in Singapore 

Enjoy!

[already reported]

Actually, I just read an article in the last few days that specifically mentioned the ABC Learning losses (it was the ST or BT I think).

They said that despite losses in several areas, Temasek's net profit this year just doubled (to SGD 18 billion). They pointed out how ABC Learning had lost a lot for Temasek over the last 12 months, but Optus had made them a bundle.

[a tad curious...]

missed that article, but wondering how could optus have made them a bundle given it is simply a subsidiary of singtel?  did they mean singtel made them a bundle?  or they simply decide to independly value the optus subsidiary at some particualr amount higher than the prior year value?

[kapich?]

No, Singtel's profit was flat, but they made a bundle from the mobile operations at Optus which increased dramatically. That is, if not for Optus, Singtel would have reported significantly lower profits over the last quarter.

[in fairness]

I don't remember reading articles crowing about great investment successes of Temasek either.  I wouldn't be surprised if they have of the order of 100 stakes in different companies.  Sure, some of them will look like complete duds in hindsight and in isolation.  So what.

From a journalistic point of view, what is the benefit of pushing an anxious day-trader mentality on a public that is for the most part financially uneducated?  I'm all for openness, but this would be more "red herring" than "news". 

The way I see Temasek, they're very soundly managed, following time-honored investment principles: focus on value, patience, diversification, and not trying to time the market.  As for the latter point, read Stocks for the Long Run (Jeremy Siegel).  The bulk of stockmarket gains are made in 1-day rallies.  By trying to time the market, you end up missing those and end up worse off.  Moreover, given the dollar amounts SWFs need to invest, they can't move in and out of the market nimbly enough.