it's elders time, page-8

gpasas,

I disagree.

Your whole thesis hinges on:
1. A statistical correlation with other companies that are trading at a discount to book value.
2. The assets are worth a good portion of what the balance sheet says they are.

Regarding point 2, it's a dog of a company that makes next-to-no return on all of its capital employed. ROC is what drives share price appreciation if you're not hanging out for a liquidation or takeover.

Here's an excell sheet that TII analysts published - note the discount to assets and remaining equity.
http://www.intelligentinvestor.com.au/core/download/specialReports/330_ELDPA%20valuation%20calculator.xlsx

Regarding point 1, correlations are important for spotting trends, but they are *not causal*. That PPX bounced suggests that ELD may have similar drivers, but doesn't guarantee that it has them. You have to identify them first before the link is proven.