Does MM like GEM moving forward?

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Question asked 25/06/2022

Does MM like GEM moving forward?

Thanks for your service, which has been v much appreciated. Earlier this year, I bought some GEM shares. I am wondering about the impact of the recently announced changes to pre-kinder in Vic and NSW and whether you see this as a positive or a negative to GEM?

Answer

Hi John,

It’s a longer term positive in that it means the market they operate in has just gotten bigger, however the impact in the short term is more muted. They have just announced price rises that will be positive in the shorter term, their balance sheet is in good shape with a buy-back on and they are now coming out of a difficult period. We like the stock and own it in the Income Portfolio.

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G8 Education (GEM)

LAST UPDATED 24/06/2022 15:52

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