Terrific that ELD has continued to pay down debt to a more manageable level and the interest savings will be considerable with that cash better deployed in the business...my concern is that despite the fact they reported F14 EBIT of $27.3m, $28.5m of that came from cost savings....the other issue is that their live export volumes have literally halved...144k short haul and 42k long haul...they always did in excess of 250k into short haul and more than 80k into long-haul.....halved in an environment of record growth in all live export markets - they have lost serious market share....Ruralco have knocked off their team, their largest Indonesian customer and also taken shipping off them...as i have said before, shipping capacity/risk is what wins the live export game and Ruralco have cut their lunch...Ruralco releases tomorrow so we'll be able to compare apples to apples - but RHL will also be declaring a fully-franked final dividend of 10-12 cents which will deliver a 5% annual return....im still an ELD fan and think that when that 10 for 1 consolidation takes place (which i think will be bad in short term for sp), they are a sitting duck for a takeover (imo good)....still love AACo in this market....as always, my thoughts only...
RHL Price at posting:
$3.44 Sentiment: Buy Disclosure: Held
ELD Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
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