Agree Klutch, those who keep saying it is expensive, it is expensive have also missed out from $2 to $4 run.
It will fluctuate but if the $500 mill is raised then so much scope to also double earnings up in 2 years say.
The market panicked today believing the SPP was flopping but the reality is the cash from that was hardly needed and it was more of a fairness thing to give investors same rights as instos got. GEM has no issues funding acquisitions.
The halt was most likely taken so they can get the note issue away then allay unfounded fears in the market which were prevailing this morning.
GEM has stated they pay out 65% dividends from profits: "G8 Education Limited would like to confirm that the company’s dividend payout ratio remains unchanged at 65% of Net Profit After Tax. This payout ratio is based on the cash paid out for dividends after taking into account the Dividend Reinvestment Plan"
Dividend was upped to 4.5c for June 2014 so that's 18c PA. That implies EPS of 27.7c run rate as at 30/06/2014.
GEM Price at posting:
$4.22 Sentiment: LT Buy Disclosure: Held
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