Hi A.T.,When I spoke with a company representative he said EDC...

Hi A.T.,
When I spoke with a company representative he said EDC was basically a bond proxy and at the time the share was trading slightly above the NTA of $1.06. The share had previously spiked to $1.15 but we agreed that was probably due to someone buying "at market" as the share is thinly traded. He said you would be best trying to get set at $1.06 at the time as that was where NTA was. NTA is revised monthly and advised via a company announcement. My average buy in price for 15,000 shares was just under $1.07 after taking brokerage and some slippage into consideration. Dividends are paid quarterly so if I was buying more, I would be looking to add around February next year as there is normally a market correction which starts the second week of January. You need to keep an eye on the NTA which is now $1.10 but could fluctuate.

Link to EDC web site where full information can be gleaned:- http://www.eildonfunds.com/index.html

I liked the idea that they purchased commercial assets, renovate them and sell them off at a profit. I also liked the idea that they lend money to property developers on a secured basis. The chap I spoke with said the big banks had tightened up on property developers lending after the R.C. and that part of their business was now very lucrative as they built a solid customer base in that sector. The company has a great balance sheet as well if you check out their financials.

The bulk of EDC shares are held by their parent company CVC limited that is probably why the shares are thinly traded. There is a possibility at some time in the future the share could be turned into a TRUST. If that did eventuate dividends would be adjusted to compensate for the loss of the franking credits.

After reading up on CVC (parent company), EDC financials, business model etc I thought this company (EDC) was worthy of a place in my portfolio. I implore all readers to do their own research as I am not an investment adviser. P.S. (Not all of my investments have turned to gold I can assure ppl of that) Good luck with your investments A.T. I think 2020 will be a steady year for the markets with no spectacular gains. Growth in some WAAAX stocks possible if you can tolerate risk.