Recent shareprice performance has been strong...someone's...

Recent shareprice performance has been strong...someone's betting on a solid earnings report or maybe even a takeover!

Some back-of-the-envelope numbers suggest NOD is still undervalued. Here's a sum-of-parts valuation. Follow me here:

- Cash at bank: est. $10m (includes $6.15m of proceeds from recent sale of rental assets to Black Diamond).

- Remaining rental assets for sale: $4.5m book value (may fetch up to $6m, given premium paid for rental assets)

- Tax losses recorded on balance sheet: $8.5m * 30% tax rate = $2.55m

- investment property: $4.5m (as per Jun 30, 2012 balance sheet).

The above adds up to $21.5m. These are surplus assets, which can be converted to cash or are cash equivalents.

NOD's current market cap is around $35m. Deducting $21.5m from $35m leaves us with $13.5m, which is the imputed value of McGrath and NOD's Build-Own-Operate projects (South Headland, Blackwater). Given that McGrath generates of revenues of $50m + and EBITDA of $7m-$9m, seems like McGrath is trading on ridiculously low multiples.

Maybe we might eventually get to a shareprice of 15c-20c, following the earnings release.