Why did G8 Education (GEM) shares rise today?
GEM +3.5%: the childcare operator posted one of the better gains of the index today thanks to the drip feed of news ahead of next week’s federal budget. The government seems happy to splash the cash so long as it creates employment opportunities which means childcare is in the spotlight. Treasurer Frydenberg talked to potentially removing the $10,560 per child subsidy cap while offering to pay up to 95% of childcare fees for families with multiple children in an effort to entice more parents back into work. For G8 it would mean more children back into child care, increasing from the ~70% seen at the end of last year.
MM is bullish GEM at current levels
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