I as well must be missing something with this one finch2.
With most recent share issue this is now a Billion dollar company. There most recent half yearly earnings are $17.6 mill so say full year of $36 million. They have since announced acquisition which will contribute $11.8M so a full year of $48 mill. Thats a PE of 20-21!
In light of this PE, the assets which you are buy for 20 times earnings via GEM are being sold in the private market for 4 times earnings. All of GEM's acquisitions this year have been purchased at 4 times the assets EBIT.
Why would i pay 20 times earning for something that the company themselves are consistently paying 4 times for? Is there any reason for the disconnect?
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