Question: Do you have a view of G8 Education (GEM) at current prices? Is it oversold?
Answer (By Paul Rickard): Unquestionably, it is oversold. The question is – has it bottomed yet?
The good news is that the short sellers aren’t that active (only 3.43% of ordinary shares are sold short), and the brokers think it is undervalued. According to FN Arena, there are 3 buys/2 neutrals – and the consensus target price is $3.72 – quite a bit higher than this mornings open of $2.82.
