GEM 0.79% $1.28 g8 education limited

Ann: Establishment of Multicurrency Debt Issuance, page-28

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    re: Ann: Establishment of Multicurrency Debt ... I'd be very interested in those numbers Veecat. Also, I think the biggest mistake people make when they try to value G8 is that they base it on its current PE ratio. This is a company that is maintaining its acquisition led growth strategy. The rally from $3.20 to $5.10 was based purely on the acquisition of Sterling for $228M. The broker consensus for FY 2015 EPS went from 22.3c to 26.2c following the acquisition (refer to the announcements). Now that we will be acquiring a $500M debt facility, we should be able to acquire 2 more Sterling sized players (not factoring in net operating profits used for acquisitions). Therefore, I think 30c EPS for FY15 is rather conservative given G8 has the potential to increase this to 35c+ by the end of the year.
 
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