positive outlook

Ok a surprising start to an Elders thread given the understandable negativity about the company however IMHO this is now the perfect time to be entering or like me topping up. Below are some thoughts which I would love to share - differring opinions welcomed as I want to validate my decision to buy further.

(1) Gearing down to 27% - Debt levels have been the killer for this stock over the last few years. Now finally they are at reasonable levels. My #1 reason.
(2) Rural conditions at their strongest in years - drought broken, grain prices up, livestock prices up, wool at all time highs - this will flow through to earnings
(3) Automotve - a drain in previous years - looks to have turned around and contributed $15M EBIT last year. Local Holden Cruze production which Futuris supply to should also help.
(4) Cost saving programme re affirmed as progressing well with a 11% saving achieved - this was low hanging fruit and should have been done two years ago but will be a massive boost to profits
(5) Take-over possibility. This isn't a big one for me - I prefer to look at the underlying prospects of a business but of course never hurts.

in the negative camp (for me) is the unpredictability of earnigns - the management lost a hell of a lot of credibility in the market last year- and the forestry assets which seem to continue to have issues.

Overall then at these depressed levels I think ELD presents a great opportunity and has a very positive outlook.