Switch - Sell Elders (ELD) buy Graincorp (GNC)
*** GENERAL AVICE ONLY***
Trade Date: 11/12/2023
Description: GNC
Recommendation
Sell (take profit) 3.5% allocation of ELD +24.37%
Add 3.5% allocation of GNC (new total 7% allocation)
Entry price: $7.40
Target Price: >$9.00
Rationale:
After a great result over the Agricultural earnings season for the MPC portfolios, the rain across Australia in November will allow farmers to plant summer crops, a possibility that the BOM declaration of El Nino had taken off the table for investors
Even after the recent rally, GNC remains cheap at a 6.6 PE, a deceiving yield of 3.74% which is actually 7.2% with special dividends (fully franked) and price to assets ratio of 1.15, whereas ELD sits at an 11 PE and 2.62 price to assets ratio, making GNC the cheaper option
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.