I think the main issue for GEM is what is it now? It used to be a growth story buying centres at 4x and having them trade at 7x roughly. It has had to do a lot of divestment of underperforming and dog centres left and shoveled into it by previous management and advisors of which there are a still a number for sale. I don't hear or see them acquiring and centres and you would think they would be looking at groups like MFD etc which are currently subject to takeover offers to kick start growing the comapny again.
You used to buy GEM primarily for capital growth but that has been completely eroded over the years. It just seems to me to be a business that is trying to turnaround the centres they have but at such a large level that is incredibly difficult to do given the sheer volume of centres under their control.
Curious to hear others thoughts. Investing for dividend or capital growth at this stage?
GEM Price at posting:
$1.10 Sentiment: None Disclosure: Not Held
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