The cost of bringing up a child from birth to when he or she leaves university is an astounding £164,000. And between the ages of one to eleven parents can expect to spend some £92,000 or 56% of the total estimated cost of raising a child. So how can investors cash in on the staggering amount that parents splash out on their children?
Mothercare (LSE: MTC) is probably a good place to start since it is often a destination of choice for most new parents. For a number of years Mothercare has been hampered by poor stock control that has hurt top line sales. However, thanks to improved warehouse management the company has returned to growth, and profits have followed suit. Turnover for 2007 is expected at £500m, which means the debt-free company is valued at a modest 0.5 times sales….
Continue reading this article at the Motley Fool