email to andy rigg, page-48

Dear Elkers,

I am an "outsider" these days regarding ELK - I no longer hold them but I found this thread interesting. Just my two cents worth for the sake of it:

No matter where I look on the market at the moment I am finding undervalued situations.

You guys are not alone in your frustration at ELK's share price but it is more a sympton of the market malaise than JUST any of the perceptions that MAYBE management are doing a porr job PR-wise.

As an example of undervalue, here is a small collection of stocks from all market sectors; both blue chip and small caps and speccies and oilers. All of them are way underavlued on potential or even actual NTA:

GPT, Banks (WBC & CBA favoured), MFG (they have an NTA of 83c, trading at 55c); LLC; BBI (infrastructure); CER (NOT CNP); PXS (biotech with $100m CASH); THX; PPT; TOL...I could just keep going.

I don't know if this helps but my main point is DO NOT discount just how bad people's sentiment is toward the entire market right now. It is at illogical levels and - naturally - the small illiquid stocks are suffering the most.

Good luck. Don't lose the faith.

Regards

Coop