- GNC's multiple announcements of "sustainable, through-the-cycle" EBITDA of $300m (which should deliver $90-$100m npat); and
- it comes on the back of a downgrade made as recently as mid-February
Its not like this should be considered a "bad year" weather-wise.
I was also expecting a much bigger fall (which may come in the next couple of days anyway). I wonder whether the relative price strength is due to HMC Capital increasing its stake? It might view this announcement as an opportunity to (a) increase its stake and (b) help it make its case to other institutions that more value can be obtained from GNC by breaking it up. Guess we'll know if HMC increased its stake in two days ...
If its true that there is hidden value in GNC's assets (eg its ports infrastructure) then perversely, the poorer it's core business performs, the closer the opportunity to realise value from asset divestment.
GNC Price at posting:
$8.07 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)