The 175 year old company has had a fairly tumultuous history since a high of around $27.00 in 2007. Recent reports look as though the newly appointed CEO is starting to steer the company back in the right direction; closing down on the significant debt and consolidating the business back to it's core roots. Is it time to jump in at around 0.12?
Still no sign of a dividend.
The following is an interesting read,
Click Here To Read Report
I hold a few thousand ELD; no practical financial $ense to it but more for sentimental reasons because of my rural background.
Interesting to follow and I wonder what the future holds for ELD.
Regarding the word 'future' -- I recall reading that Elders intended to sell Futuris but have seen no reports since.
Hope you did my friend..
Now at 20c
Thats what they need, an eight point plan.
http://www.asx.com.au/asxpdf/20140728/pdf/42r28pgrl2r7yn.pdf
Everything will be OK now, has to be twice as good as a four point plan right? Maybe a one point plan not to destroy shareholders equity could have worked.
Haha... You know they hired really expensive consultants to decide whether 8-points were too many or too few.
But, you'd be surprised how the market will react to a well-articulated plan, and how the company's staff will react to a well-articulated plan. SGM (sims metal) last week came up with a strategic review which traget 3x increase in EBIT without too much details around how it'd get there, and the shares were bought up strongly.
FWIW, ELD is not a bad turnaround play. They are no longer on death watch. They do need to sort out their hybrid notes as a last step to repairing their balance sheet. It's not really a mega growth potential or anything, but simply getting it run like a above-average business should see it re-rated for some time.
You own this stock?? I'm still holding on to ELD, seems to be one of those stocks people lost interest in. Nothing exciting but it should continue to accumulate cash and outperform until 2019 if management keep up what they're doing, although I have no intention to hold it until then.
Yes, still holding in the SMSF. Giving it room to move, weekly trailing stop is 4.96 and it held above that at the close on Friday.
I did also hold some in my trading account but they were stopped out on the daily at 5.26 last Monday.
Weekly chart - click to expand
View attachment 71761
How do you use stop-loss? Do you use Bollinger bands or weekly MA using daily low? Conversely, do you buy when it breaches the weekly top? I still have my stop-loss set around $3.40, I really need to move it up, maybe around $4.70?? (last top reached in 15 Jan 2016)
Apologies for going off the thread topic of ELD to answer.
Stop Loss - two methods, one when I enter the trade, an initial stop and the difference between the initial stop and the entry point determines how much I am willing to risk and in turn how many shares I will buy.
If you look at the chart of AWC below as an example and only look at the most recent "heads up" arrow you will also see a value on the right of 1.842.
That is the low of the third last bar and 1.83 would be a likely initial stop to base my initial entry calculations on.
Once I am in the trade and I go into profit then the trailing stop (ATR with variables) takes over once it passes the level of the initial stop. That is the theory of how it works but trading sideways, news, dividends etc can mean I may intervene along the way and exit.
I have also include a chart of CDA below as an example of the advantage of a wide trailing stop in a weekly system once you get past the initial part.
Buy point - the up arrow on the chart is just a heads up. If you look again at the chart of AWC you will see a heads up arrow in late April 2016 and if you now try to apply an initial stop as I described above the recent low was too far from the entry, one glance at this in a scan result list and I move on to the next result.
Now if you look at the next heads up arrow in mid October the pattern is more stable and you could apply a sensible initial stop that would also secure an acceptable buy volume at your normal $$ risk. (this was how I entered AWC)
The remaining arrows can then be viewed at top up points if you wanted to increase your holding.
Once you are in the trade profitably you then need to be prepared to give it room to move and if you look at the AWC thread (https://www.aussiestockforums.com/threads/awc-alumina-limited.4687/page-3#post-950281) you will see that another method is used to see where the stock behaviour may be without the stop interfering with that pattern, sometimes this takes a bit of nerve when you see your profit reducing from a high - system trading !
This is rough description of the weekly system, daily is similiar in some ways but more discretionary.
Hope that answers your question, now back to ELD from here on.
(click to expand)
View attachment 71781 View attachment 71782
Elders Limited spiked 19.70% to $8.87 today following the release of its financial results for the 12 months to 30 September 2018.
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