Balanced Portfolio Recommendation: Take Profit 4% Elders Limited (ELD)
Date: 17/7/2024
*** GENERAL AVICE ONLY***
Elders Ltd. is engaged in providing financial, real estate services to rural, agricultural and automotive businesses. The firm operates its business through the following segments: Branch Network, Wholesale Products, Feed and Processing Services, and Corporate Services and Other. The Branch Network segment includes the provision of a range of agricultural products and services through a common distribution channel. The Wholesale Products segment comprises of the AIRR business based in Shepparton, Victoria, supported by a network of eight warehouses to supply independent retail stores throughout Australia. The Feed and Processing Services segment focuses on Killara feedlot, a beef cattle feedlot near Tamworth in New South Wales. The Corporate Services and Other segment provides general investment activities not associated with the other business segments and the administrative corporate office activities.
PE: 22.59
Yield: 4.47%
Market cap: 1.45B
*** Trade Plan ***
We are taking profit on Elders Limited (ELD) by selling our entire 4% allocation. Purchased at $7.60 and now selling at around $9.15, we realize a 20.3% capital gain. Additionally, we received a $0.18 dividend per share, which provides a 2.36% yield. In total, this equates to a 22.66% profit on our investment.
This decision to reduce our ELD allocation is driven by our strategic aim to increase cash reserves within the portfolio. The increased liquidity will allow us to capitalize on better investment opportunities as they arise, ensuring we can respond swiftly to market movements and potential undervaluations.
Total Portfolio Allocation: Sell 4% of portfolio
Entry: $7.6 | Exit: $9.15 | Profit: +22.66% (Inclusive of 18c Dividend in May 2024)
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.