fundamentals month of october

Was looking into GEM the child care centre operator.The first thing I noticed was that the current shares on issue is 272 mln which gives a market cap of about $900 million. Today they have placed another 26 mln shares.The directors only hold in total 4 mln shares or 1.3% of the expanded capital.Once again if the company is so good why don't they own more?In my books I would prefer to see directors holding at least 5%.Based on the half year the price ratio is 40 which looks expensive.Some estimates have it making $34 mln profit this year which puts it still on 30.Net assets are only $218 mln given the market cap.It looks over priced to me but that's not to say it won't go higher.dyor.