seamisty, good observation about UBS's bias in its target pricing. This could explain their unusually high $7.95 target price.
However, UBS had a target price of $7.26 in May 2014, long before GEM planned and selected UBS for this cap raising. Maybe UBS was also biased last May if it was involved in earlier cap raisings?
More important, the info here was mainly about the market's obsession with the gov't child care policies, whereas UBS is suggesting that we get back to fundamentals because the industry has growth and profitability potential no matter what tony and crew do.
Also, remember that 8 of the 10 other brokers -- the 9th being Citibank -- have GEM target prices close to $6 (consensus is $6.13, including UBS's estimate and Citibanks' $4.20 estimate).
A bigger concern is the market distortion from shorting. 25% of Tuesday's trades were short sales. And that's a TYPICAL trading day for GEM over quite some time.
GEM Price at posting:
$3.88 Sentiment: None Disclosure: Held
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