Shades of 2002......

.....where Schaffer Corporation - a diversified industrial - quickly more than tripled in share price given that:

(i) they had just doubled their exposure to the Automotive Leather sector; and

(ii) the normally conservative John Schaffer, in his 2001 Chairman's Address - rather unusually - predicted an "equity market re-rating of the stock".

How right he was! Fast forward to 2015. Schaffer is still that same diversified industrial, trading at a significant discount to its hard assets, but more importantly:

(i) they are once again increasing their exposure to Automotive Leather, in John Schaffer's words, with "at least a 50% increase in sales capacity"; and

(ii) his comments in his 2015 Chairman's Address - again unusually - stating that their focus on creating long-term shareholder value "...is not always immediately reflected in our share price..."

Whilst their Urbanstone division has faced competition, and their Delta prestressing operation is coming off the fall in resources spending, this is balanced by the unbooked value increases over the years from their passive property holdings and the dormant redevelopment value in their land holdings.

Given the Automotive Leather contracts, a conservative sum-of-the-parts valuation comes to around $10 per share. As a very stable dividend paying diversified industrial, SFC should simply not be trading at sub $5.