I have until recently had a long position in GEM, and recently got out - too early too - lol - and would have no complaints - other than GEM should have been in a trading halt if it was being bid due to insiders having knowledge of what was happening at Sterling. Tempted to dob GEM in to ASIC - as that was extremely incompetent or negligent IMO. Had I known I doubt I would have bought, but I imagine recent sellers may have wanted to know the full story.
I also think there is a risk that management have got a bit too carried away, raising capital at 360 is excellent however, and I assume it will happen. I think the EBITx demanded is going to increase - potential sellers are not totally silly. Also there is a big risk with the gov childcare review being tabled mid this year - http://pc.gov.au/projects/inquiry/childcare - that could obviously go either way for GEM. I personally hope that they make hiring babysitters and nannies tax deductible with a limit on deductions - bring that sector out of the dark a bit as far as tax is concerned - could potentially be a breakeven proposition as far as tax receipts is concerned???
Anyway - GLTA, and congrats to current holders on your profits
GEM Price at posting:
$4.76 Sentiment: None Disclosure: Not Held
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