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ELD - Elders Limited

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someone actually rung me [surrprise] to say they were "looking into it" but nothing heard since and emails not answered as usual
 
Got my ELD shares today... the full $20K plus extra 1 shares. Yes 1 additional share when I actually applied for many many more.

I was a proud holder of 47 ELD shares prior to the cap raising anyway so the scale back is fair enough I suppose.

Dumped all of them on the open and squared off my short hedge... not a bad way to get ~15% return in a month or so. Only wish they'd allocate the shares 2 weeks ago when it was trading at 20c.
 
Since the 'buzz' of the cap raising the stock has fallen to ~15 cents, and has now landed on my 'contrarian mode' watch list. I'm guessing the primary reason is because everyone paid 15c per share for the SPP, i.e the share is being valued atm at cost.

Looking at its past earnings.... suppose it can recover to previous earnings levels, you're still only looking at a P/E of around 10, because of the 4.5x increase in total shares outstanding..... but considering that it had sold so many profit generating assets in recent times, e.g insurance unit to QBE, recovering wouldn't be easy...... I think I can find better places to put my money.

If it slips another 3 to 5 cents it will become deliciously tempting for me to buy some, though, for obvious reasons.

Just my 2 cents. disc: I don't hold any ELD stocks but I hold some QBE stocks.
 
I am seriously looking at a small parcel of ELDPA. My investment horizon is July 2012.... and, as long one dividend, or redemption, occurs by then... I'll be golden. Literally (Though, only small parcel... but, hey, an extra $2000 is an extra $2000).
 
You all guys are intelligent enough to save your money. I bought ELD at .235 and still holding. I coulnot sell due to my work engagements. Now loss is so much.....I even couldnot think but afraid of and very scared if sp further go down... Is there any chance of improvement.....
Any suggestion and advice will be appreciated.
Thanks in advance
 

I don't have shares in this stock but I wouldn't buy it any how at any price......not a fundamental strong company to buy.....buy stocks like this you cant sleep at night

it failed on so many level..just a quick pointers

Lot of debt
they all over the place, most profitable business got pick up by fire sale buyer, return on capital is a shocker even in good year and in a bad year capital return at bankruptcy rate.

Work out why you even thinking of buying this stock and put steps in never repeat the same mistakes.

I'm not good at predicting where share price are heading ..All I do I dont get involve with these company.

Good luck hope for some reason the stock gone back up and you make a bit of a profit.
 

I did a fair bit of reading before the SPP and the only conclusion I could draw was that there were too much uncertainties in the turnaround story, and as such I would be in and out through the SPP as quickly as possible (as opposed to hanging onto some other recapitalisations like AIO and VBA).

ELD is nothing more than a wholesaler/distributor of rural supplies and financial products these days. Like ROE said, their trading record was marginal at the best boom times and downright ugly in even just normal periods. The turnaround story rely on increasing demand and recovery of prices on things like fertiliser, which are commodities and by definition ELD cannot be a price maker. So the recovery story is in fact not really in the management's control.

I will only be interested in buying on confirmation that they have turned it around. As a holder however, it really depends on your pain tolerance, your outlook on some of the key product prices and your faith on management to decide whether you will hold on until the next trading update.

I don't understand why you can't sell due to work engagements... but I would suggest never buy a stock that you can't sell at a time of your choosing (unless you are a company director or something).
 
Hmm, if you work 8.30-5, it may be hardER to sell due to work commitments...

I'm slightly more optimistic than you guys. It's been trodden down hard. The concensus opinion is that the write-downs were over the top and done to just get them all out of the way... at 15c is a great buy *IF* the company hits its forecasts for this FY and the next. If that occurs, then it really is a great buy at these prices.

I personally can't see it below 14c for any decent length of time, but, it may hover around 14-17.5c for months.

Albi, I can't give you financial advice... but, *IF* I was a person with a long investment horizon, who wasn't risk averse, I wouldn't mind some ELD making up a small part of my portfolio. As it is, I wouldn't mind ELDPA making up a small part of my portfolio atm!

ROE, as far as I was aware.. ELD didn't have an awful lot of debt, and had net assets well above (> twice?) it's market capitalization... even at very much written down prices???

In theory, stocks should tend towards their book values...

"not a fundamental strong company to buy" is accurate... but, that doesn't preclude these from being underpriced/undervalued / providing a positive return to investors. I mean, Buffet probably wouldn't invest in ELD.... but, some people will and some people will almost certainly make some money from ELD.

"the only conclusion I could draw was that there were too much uncertainties in the turnaround story, "
Which is why the forecasts are so hard to believe

"your faith on management"
HAHAHA! I have slightly more faith in ELD management than I had in BBI management.

Now, back to me.... any thoughts on ELDPA?
 
Is anyone watching what's going on with Elders this morning (new code is ELDDA)? Curious to know if there were any opinions on the effect of the reconstruction. I haven't owned shares in a company who've been through this process before. The opening match price currently looks bananas!
 
OK. Now that we've started trading I can see what's happened. Still interested though in what people think the impact of the restructure will be on the share price. Could it spark a recovery? What's been the SP effect on other companies who've been through this process? (It certainly appears from the volume that the day traders have run away)
 
I doubt that the capital restructure of itself will spark any particular action.

After all, everyone has had plenty of time to absorb the fact that new capital was to be raised and that a lot more shares will be on issue. The capital raising was assured in that the greater part of it was underwritten so no surprises there.

It will probably need some news from the company as to current trading to get some SP action.

Disc: Not holding but interested if the SP starts to trend upwards.

 
Hiiiiiiiiiiiiiiii, what's going on? I come back after a long stay in hospital and found my protfolios showing nill in ELD. Can anyone explain hta is going on? I cant sit on net long.Holding ELD . Kindly please..
Thanks
 
Albi said:
Hiiiiiiiiiiiiiiii, what's going on? I come back after a long stay in hospital and found my protfolios showing nill in ELD. Can anyone explain hta is going on? I cant sit on net long.Holding ELD . Kindly please..
Thanks
Click to expand...

They did a 10-for-1 consolidation on their shares. So they are now trading at ~$1.5 under the code ELDDA.

So you have neither made a 10 bagger or lost all of your holding. Pretty boring really

Hope all is well re hospital stay.
 
sorry Folks, this may sound like a dumb question but.....I am holding some Elders shares but see now that they are trading as ELDDA. To sell my portfolio using commsec is it the usual process? (My ELD stocks showing nil value)

Many thanks
 
I hold ELD using Etrade and can't trade ELD now as the code does not exist. However, as I understand from the recent share consolidation announcement ELD will be traded again on 7 Jan.
 
You can trade on a deferred delivery basis but first settlements on the consolidated stock will not be until the second week of January Regards, Tony
 
Hi Guys
Is there any hope that SP will rise. Everyday it is going down and down. In morning it was showing sopme positive signs but at noon down. I am 55% in loss. Trying to comeout but loss is so much and I am afraid after losing 55% of my capital again I might not trap in another stock. I believe this company is not going to be like CNP or BBI.
 

Albi - sorry to hear about your situation. If you are looking for comfort here on the forum then you are kidding yourself. What good or bad does it do if someone on this forum tells you that ELD will be going up or down?

There is only one thing you should do. Forget about you have ELD shares, and forget about how much you paid for them. Look at ELD from an impartial point of view and arrive at a value you think they are worth, compare that to the current share price, and then make your decision then to hold or sell.
 
If I had the cash, I'd probably buy ELDPA.

Having said that, the current SP is historiaclly low, with plenty of upside.
Having said that, the company is still risky.

Have you considered ELDPA?
 
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