Citi rates GMG as Buy, Speculative Risk - Given the current share price and pending refinancing deadline of May 2009 for $460m, the broker expects management will likely cut the 2HFY09 distribution to a point where there is sufficient capital to support the balance sheet leading up to the refinancing deadline. Buy and target maintained.
Target price is $0.40 Current Price is $0.30 Difference:$0.10 - (brackets indicate current price is over target). If GMG meets the Citi target it will return approximately 33% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June. Citi forecasts a full year FY09 dividend of 12.70 cents and EPS of 18.20 cents. At the last closing share price the estimated dividend yield is 42.33%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1.65.
Market Sentiment: 0.4
GMG Price at posting:
34.5¢ Sentiment: Hold Disclosure: Held
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