Coincidentally I came across this article yesterday and was going to post it today for HC comments. I was feeling fairly happy with myself after picking these up on the dip for $4.00 when the HY report was released last week, then I read that article yesterday and started to have second thoughts, so thanks for the clarification stlamc and Islay.
This is the latest comment from two hours ago by Gaurav Sodhi:
norm • 7 days ago
Gaurav, do you see the potential for GEM to follow the same path as ABC? are there any similarities ?
Intelligent Investor Analyst norm • 2 hours ago
The strategies are the same but ABC got sloppy and unlucky. Sloppy in that they overpaid for centres (it's hard to grow without acquisitions) and unlucky because debt markets imploded at the same time. It's not the blowup risk that ticks me off: it's the tendency to buy assets at one multiple - do nothing to them - and then flog them off to shareholders at a far higher multiple, all the while paying themselves handsomely for being so clever. GS
GEM Price at posting:
$4.34 Sentiment: Buy Disclosure: Held
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