In doing simple comparisons between ief and lep i cant quite...

In doing simple comparisons between ief and lep i cant quite understand why ief is trading at .14c in the dollar and LEP is pratically trading at its net asset backing. LEP has total liabilities/total assets at 70% and IEF is 66% at dec 30
sure IEF still has less covenant headroom yet there is more equity on their balance sheet. IEF will have to refinance in 2010 which will be difficult LEP refinances in 2011.

It appears they both have invested in similar portfolio's as IEF have previously sold properties to LEP, yet IEF does have 15 clubs in their portfolio so i am not sure how this stacks up against the pub industry.

Given LEP's Asset Value maintained the same value over the past 6 months to june, why wouldn't IEF's portfolio be valued similarily? If this occors then there will be no covenant breaches for ief and they may have a better chance to stabalise their company before the upcoming 2010 refinancing to potentially avoid foreclosures. IEF’s portfolio is already 150 basis points higher than LEP so this may mean there is more potential upside.

LEP has also just commenced a rights issue and placement totaling 105m of capital which will put them in a very strong position, where you have to think they will be looking at taking advantage of that in the coming years, and the option of taking over a company with 500m of total assets for 20 or 30% of their net value would have to look pretty enticing.

I guess we will find out more on monday when they release their annual report, but i just can't see why its not worth a punt at this current price?