I agree it would seem GEM has currently achieved very little in terms of economy of scale, but I wonder if taken private if this could be quite different....whether more value could be extracted from it.
The falling occupancy rate due to oversupply is only half the equation, the rapid growth in expenses is the other half and much more in the control of the company - I think this could be run a lot tighter....surprised there wasn’t more commentary around efforts to cut operating costs, the one area they can actively manage regardless of external supply/demand market forces.
If taken private I suspect this could be run a fair bit leaner, just going by record of other companies given a tune-up by private equity.
GEM Price at posting:
$2.13 Sentiment: None Disclosure: Held
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