Elders Hybrids
Recommendation
- {{x.value}}
{{ twilioFailed ? 'SMS Code Failed to Send…' : 'Enter verification code' }}
{{ completedStep1 ? 'Authentication & Security' : content.trialHeading.replace('{0}', user.FirstName) }}
{{ content.upgradeHeading.replace('{0}', user.FirstName) }}
The email address you entered is registered with InvestSMART
Please login to continue
We have sent you an email with the details of your registration.
Looks you are already a member. Please enter your password to proceed
{{ upgradeCTAText }}
Updating information
Please wait ...
Your membership to InvestSMART Group recently failed to renew.
Please make sure your payment details are up to date to continue your membership.
Having trouble renewing?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
You've recently updated your payment details.
It may take a few minutes to update your subscription details, during this time you will not be able to view locked content.
If you are still having trouble viewing content after 10 minutes, try logging out of your account and logging back in.
Still having trouble viewing content?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
Please click on the ACTIVATE button to activate your Intelligent Investor 15-day free trial
Please click on the ACTIVATE button to finalise your membership
Unsuccessful registration
Registration for this event is available only to Eureka Report members. View our membership page for more information.
Registration for this event is available only to Intelligent Investor members. View our membership page for more information.
- You are already registered for this event.
- This event is already full.
- Please select a quantity for at least one ticket.
- {{ i }}
Forgotten password
Please enter your email address below to request a new password
- Indepth analysis of ASX listed shares
- BUY, Hold and Sell Recommendations
- Ideas Lab
- Special Reports
- Alan Kohler’s Weekend Briefing
- Interviews with CEO’s & top influencers
- Money Cafe and Talking Finance
- Super Advice and Q&A with Ask Alan
Hot on the heels of our recent update, Elders announced the conditional sale of ‘the large majority of its pulpwood forestry assets in the Albany, Bunbury and Green Triangle regions to investment funds managed by Global Forest Partners.’ The price is reportedly around book value, but more importantly the company expects to receive over $45m in installments that will help reduce Elders’ onerous debt levels.
| Hold | Up to $60 |
| Reassess | Below $30 |
Chief executive Malcolm Jackman has provided a steady hand, patiently selling assets while avoiding a firesale. While each asset sale reduces the range of possible outcomes for the Elders Hybrid securities, Elders’ financial position remains precarious. Resuming distribution payments on the hybrid securities remains way off at best.
If Jackman can manufacture a small miracle then hybrid owners stand to do very well from here. But given the risk of a total wipeout due to Elders’ debt levels, we’re hoping for the best while expecting the worst. The security price has increased 7% since 17 Apr 12 (Hold – $37.25) and we’re sticking with HOLD.
Note: The model Growth portfolio owns Elders Hybrids.
Call 1300 880 160
Start a chat
Schedule a call
