GEM 3.23% $1.20 g8 education limited

Makes you wonder why long time owners (presumably more...

  1. 89 Posts.
    lightbulb Created with Sketch. 1
    Makes you wonder why long time owners (presumably more knowledgeable in the childcare industry than you or I) are happy to vend in at 4x EBIT whilst the market values GEM at 3 times that multiple...

    leveraging up you say? not any more! she's one for one debt and equity from here out.
    Economies of scale and business synergies? 0!
    I suggest that the centres are not at 4x EBIT but more like 5x. when that eventually comes out in the wash post the growth phase, it should wipe 2x EBIT off GEM's price = sub $4.00

    remember, a DPR of 98% and ROE of 14% = sustainable growth rate of roughly 0.3%.

    besides, it was obvious they needed cash. should have raised in the mid 5s...
 
watchlist Created with Sketch. Add GEM (ASX) to my watchlist
(20min delay)
Last
$1.20
Change
-0.040(3.23%)
Mkt cap ! $971.4M
Open High Low Value Volume
$1.24 $1.24 $1.20 $3.132M 2.603M

Buyers (Bids)

No. Vol. Price($)
6 12211 $1.20
 

Sellers (Offers)

Price($) Vol. No.
$1.23 24900 2
View Market Depth
Last trade - 16.10pm 29/03/2024 (20 minute delay) ?
Last
$1.21
  Change
-0.040 ( 2.67 %)
Open High Low Volume
$1.24 $1.24 $1.21 147490
Last updated 15.59pm 29/03/2024 ?
GEM (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.