eldpa, page-7

ELD doesn't really have any valuable base agricultural assets, but rather generates revenue through provision of services and products supporting the ag industry. They've sold their financial services, and their Forestry investment is a well-publicised loss-maker.

If they start getting better at what they do, maybe they'd be worth something, but for the last year, during what was mostly a bumper season until the weather kicked in, they were losing market share. Prices vs NTA doesn't tell the full story - kind of like TLS, this one.

For those holding ELDPA, take a look at another badly-run business with preference shares who recently resumed coupon payments: PXUPA. My guess is that june's going to fly by, they'll announce a step-up, and then in 2012 they'll start paying again, if they have the money. A takeover may be on the cards, but I'm not holding my breath.

Disc: Hold ELDPA only