Results were a miss on every line? Full year forecasts look bullish by ~10%. Bounce on short unwind and move back to 4x EBIT purchases? Smoke and mirrors - net cash flow is actually down vs. PCP!!
Purchase multiples state that these 25 centres earn $9,200 of EBIT per child per annum. That is over 3x their average EBIT per child ($2,588 CY13). Something out of whack there??
110% dividend payout ratio and gearing up to eyeballs to do so? Can't go on forever!
Don't think any of that matters as market looking squarely at 4x EBIT multiple. At 11% market share and counting that must come to an end also???
Hard to like here?
Have been wrong before and will no doubt be wrong again!
GEM Price at posting:
$4.94 Sentiment: Sell Disclosure: Not 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)