Have you been keeping up to date on Elders? Just digging around at the moment. Looks like we have company too – some institutional interest leading to a pop last week. Any thoughts?

Cheers
Rohan

This is one for the true long term I guess.

How low can it go? Underlying EBIT to May was estimated as $39.2M and now $15M. Sales down, margins down and costs now being slashed. Weren’t costs already slashed?

Looking to the future. I’ll keep watching Elders as if they ever right the ship they will have such a low cost basis in the business that profitability could take off.

Been working through the agricultural sector trying to get my head around valuations. Haven’t rummaged through Elders (but given their track record and small cap status – was going take time to get there). My question is have you had a look at AWB? Still a tad difficult to break it into pieces – but from what I can glean it’s looking pretty good. Assuming the grain trading sale and JV go through, the business will have immaterial debt and will essentially revolve around Landmark. Expect transparency to improve – especially as management seem intent on simplifying the business.

Gotta run – but just wanted to check whether you had looked at them?

Cheers
Rohan

“Profit before one-time items was A$1.1 million, compared with a loss of A$21.8 million in the previous period, the company said. One-time, post-tax charges totaled A$167 million.”

““The company anticipates a substantial lift in its earnings in the second half, given suitable rainfall in Western Australia and suitable market conditions,” Elders said in the statement. Full-year profit is also expected to benefit from increased live exports, it said.”