Does MM believe Elders (ELD) has seen a bottom?
Hi James, Could I have your view on ELD? have we seen the bottom? Thanks Feng
The Latest Q&A
Answer
Hi Feng,
ELD has been a “hot topic” over recent months as its continued to spiral lower – on Thursday it closed down a painful -38% year-to-date. We now believe the stocks finally offering good value below $6.50 but considering the entrenched nature of the current bear market we would classify it as an accumulate into weakness as opposed to an all-in buy – remember surprises usually unfold with the trend.
We like Elders over the medium term, however as we’ve witnessed shares underperform for long periods through this year hence if we were to go long it might be a case of buying in say 3 tranches at $6.60, $6 and $5.50 i.e. leaving some flexibility to add to the position as the weak keep getting weaker in 2023.
We have written about Elders at length in notes this year and why we have avoided the stock so far, all of these opinions are available on the Elders page of the site here under the Opinion tab.
