Valuation, page-33

Like GXL for the underlying theme of increasing humanisation & integration of services with product.

Valuations are currently :

	Column 1	Column 2	Column 3	Column 4
0	10-May	gxl	4.35	macq
1	10-May	gxl	4.40	ubs
2	10-May	gxl	4.70	citi
3	10-May	gxl	4.68	canaccord
4	10-May	gxl	6.00	morningstar

Positive elements :
Good prospects for price recovery
Potential takeout at high $4

Negative elements :
No property play (for hedge funds)
Shorters (No AustSuper here !!!)
Current holders have little intrinsic attraction to the industry

Estimates underlying final np at $35m for fy18
Pe of 13
Expected divs forgone in 18 for debt paydown

Would prefer to see :
1) Share offer of 1:2 at $2.50 raising $125m+ to paydown debt + working capital
2) On-market buyback announcement (not necessarily acted upon) to keep shorters honest
3) Writeoff goodwill completely