Consumer Staples Sector – SWITCH Elders ELD:ASX to Treasury Wine Estates TWE:ASX
SWITCH Elders ELD:ASX to Treasury Wine Estates TWE:ASX
SWITCH Elders ELD:ASX to Treasury Wine Estates TWE:ASX
We advise selling 4% of our portfolio allocation in Woolworths Group Ltd (WOW). The stock has provided an 11% profit, rising from our entry at $30.8 to an exit at $34.2. Given the recent challenges faced by the company, including operational issues and potential management changes, there is uncertainty surrounding the upcoming earnings release. These factors could lead to a revaluation of the stock, making it a prudent time to lock in profits and reduce exposure.
Poor economic data out of the US has started to pile up along with soured sentiment on the Mega-Cap stocks and the AI thematic. We are recommending a 5% allocation to a portfolio protection tool or “short hedge” to buffer the damage from any downside move
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.
We recommend reallocating 2% of our portfolio from Elders (ELD) to Nufarm (GNC). This decision is based on the realization of a 9.2% profit in Elders and the assessment that Nufarm is currently undervalued, as supported by its recent earnings report and market conditions.
We recommend to add into the weakness due to improving agricultural conditions
The emergence of La Niña will bring wetter conditions to country Australia
For our trading strategy, we’re adjusting our position in Elders Limited (ELD) by reducing our allocation by 1% due to its recent impressive performance. Despite this adjustment, we will maintain a 2% allocation in ELD, recognizing the stock’s strong momentum. Additionally, the significant rainfall recently suggests the potential for continued positive performance, justifying our decision to retain a substantial investment in the company.