(Un)Intelligent Investor Article, page-50

I have substantiated my position over the last 12 months on HC. The market has done all the concluding for me. Go back and read myriad posts.

What do you not understand about nominee holdings? It is not UBS, it is their highly intelligent client base!

UBS are GEMs broker, why the hell would they fully underwrite at $4.90 and then short it? same again for fully underwritten DRP. I'm not sure you are fully up to scratch if you go around blaming big evil institutions renowned for shorting (ahh try and run a deriv book without shorting???) on the drop in SP. Try instead a) unsubscribing from Motley Fool and b) spending about 15 seconds thinking about why GEM is a terrible business and an overvalued stock.

as you have shown no interest in educating yourself by going back over old posts, i'll reproduce some points that jump to mind:-
1. vendors who know child care inside out continue to sell at 4x. you, a rookie investor (gambler) with about 30 seconds experience in the child care industry continue to value childcare centres at 10x, 15x, 20x depending on your SP entry. One of you is clearly wrong.
2. the 4x GEM continue to pay is complete rubbish. It is much closer to 6x (which mitigates some of point 1, yes)
3. unhedged foreign debt. seriously? the AUD fell? who couldn't have seen that coming? what do swaps cost? about 0.5%? Do GEM know an international IB interested in doing cheap swaps in exchange for ECM business? maybe UBS??? What investors/gamblers missed the AUD effect on earnings? No one on HC should have been burned by this as it was raised months ago.
4. Poor stewardship. Shocking even.
5. massively increasing competition into budgetary constraints into industry upheaval
6. the growth multiple needs to be wound back to 0 as it is now 1 for 1 debt to equity as I have been harping on about for at least a year on HC
7. fully. underwritten. DRP. enough said. run for the bloody hills.
8. sustainable growth rate is somewhere between negative and 0.5%
9. unemployment decreasing today?!

I could (and have in the past) go on for days. it was a short at 4.60, a short at 5.60 and a short at 3.60.

I have said it before. I will write you CFDs for unlimited volume at $any on this thing. GEM remains the best possible short as you will only have to pay brokerage on one side of the trade.