Balanced Portfolio - ADD 2% Elders Limited (ELD)
***GENERAL ADVICE ONLY***
Elders Limited (ELD)
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: 11.49
Price to Assets: 3.51
Yield: 6.22%
Market cap: 1.16B
Strategy Update
The recent update from Elders is similar to the February update from GrainCorp in that it is backward looking with sentiment sitting in “El Nino” conditions as opposed to the forward looking 65%-75% chance of “La Nina” by September
The recent rain on the eastern seaboard and central-west NSW has secured enough moisture for winter crops to be planted and any further rain will see an increase in the Easter Young Cattle Index (ECYI) which Elders is highly correlated to
We recommend to add into the weakness due to improving agricultural conditions
Add 2% <7.60
New Total 6%
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.