Besides the general grey clouds over the industry. The company is also facing debt refinance market uncertainty. According to last announcement equity raising is not being considered and therefore I am of the opinion the management is certain it will refinance the debt. The question is will the terms be better, worse or the same? I think they will be better. Why? Because the debt markets yields are much cheaper. Try calling up your bank and ask them to reduce your rates otherwise you are moving else where. I just did that and I moved from 3.92% to 3.71% P.&I.
I have a strong suspicion someone big is looking at this company and thinking to take a punt. At this stage 30% premium is a good buy.
They have defense ready with the lawyers and UBS in the tent. Tells you something?
GEM Price at posting:
$1.94 Sentiment: Buy Disclosure: Held
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