The ASX 200 is starting to show some serious bullishness and is approaching the 6,000 point resistance level it so struggled to break since 2008! In bullish times like these what better than to trend a strong story that is not only trending technically, but is fundamentally cheap on FY17e multiples as well!
This week we have awarded Elders Ltd (ELD) as our Hot Stock Of The Week!
At Equity Story, our eyes have been on this story for some time now, and as patience rewards, we waited for the perfect bounce off the trendlines. Multiple mentions of bullishness later, and after it has broken $5.00 on some strength, we think it’s suffice to say that Elders (ELD) looks to have a strong move this week.
More fundamentally speaking however, Elders has shown stellar growth and based on 1H17 earnings (and annualised), ELD is sitting on a ~8x FY17e multiple. Elders has been growing their earnings steadily over the past 3 years.
With the preliminary final report expected 13th of November, the share price does not seem to be getting slower and perhaps most are expecting a strong end to the year.