I agree a little that dividend is being paid from debt but every single company with debt is doing the same. GEM is still paying from profits and that is what the corporations act require I thought.
GEM is not that expensive on a 2015 PER,factor in defensive earnings, manageable gearing and good yield it is a hold at $5 at worst. I want to see them lay low for 12 months and focus on bedding down and consolidating. Of course if a 4 X EBIT opportunity comes along it is worth exploring but they must be careful.
As for the broker guidance it is pro active as commsec has weak coverage of consensus estimates, there were changes so posters who claim it was a ramp and re issue are clearly down ramping.
GEM Price at posting:
$4.82 Sentiment: LT Buy Disclosure: Held
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