Overvalued? Perhaps.. Trading opportunity? Definitely. Full year results will be brilliant, and although it is a seasonal opportunity there are some flow on benefits..
1. Less Leverage = lower I in the EBITDA leading to higher Divs or more sustainable dividends.
2. Less Leverage = Private Equity target.. it has a lot of infrastructure that is in demand and is a virtual monopoly which Private Equity companies like... and would probably mess with the pricing model to make more money from it.. it would be a good buy by an Australian Super Company too - long term asset that delivers greater than inflation returns.
GNC Price at posting:
$10.17 Sentiment: Buy Disclosure: Held
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