ScoMo wants schools, childcare to stay open and small caps are applauding the move
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Every day measures to help contain the spread of the coronavirus are getting more and more extensive by the day but schools and childcare centres are not being closed just yet.
Some individual institutions have opted to close due to coronavirus cases. But so far the sector has been exempt from the government’s ban on large gatherings.
As recently as this morning, Prime Minister Scott Morrison said “the medical evidence is crystal clear that childcare and schools must stay open”.
One ASX small cap Think Childcare (ASX:TNK) agrees.
The company released a brief statement reiterating Morrison’s words and said,”based on Singapore’s experience, keeping childcare services open has been an effective way to manage the containment of COVID-19″.
However, other jurisdictions (such as North Carolina) have closed down childcare centres even without a total lockdown like the one Italy imposed.
The latest comments from Think Childcare come a week after the company highlighted the impact closing childcare services would have on the economy.
“To close down childcare services on masse would mean that potentially a million people would not show up for work the next day,” it said.
“The impact on these families, their place of work and the broader economy would be devastating and far reaching.”
Another stock commenting on the situation this morning was RedHill Education (ASX:RDH), which runs educational programs. Although its programs are mainly for adults, it has some programs for kids including the Coder Academy.
Redhill has ceased face-to-face courses today for at least two weeks. But it will deliver its programs online and promised none would be cancelled or deferred.
It did however defer a proposed capital investment in Brisbane to preserve its available free cash flow.
While both Redhill and Think Childcare shares were unchanged this morning, they have fallen over 40 per cent in the last month.