solid day , page-8

Hi guys


We seem to have some strong views on certain things ie equipment vlaue at half the price etc etc. Yet I dont see to much real nummbers or analysis NPV, interest coverage etc etc

We have Barclays as a substantial shareholder, and CBA recently. I worked for a fund manager and undestand how they work. The anlysts sit around and thrash out ideas, and stocks, Each needs to defend the stock they back. for example, if mining volumes where significantly down globally, then a resources analyst would riase this as an issue. CBA coming on board recently would have factored in all the econimic slowdown, credit markets, commodity demand and they have bought. To do this they would have exmained assets, demand for assets, interest coverage, free cass flow, NPV etc.

For those that are bearish( and dont ger me wrong, I know this stock has its risks) please use some real numbers to back up your position rather than emotional views. I know having debt is not great in this market, however I do think this has been factored into price.

The best returns are made when there is uncertainty and fear of what may be. My simple take is there is enough asset backing, low capex and good free cash flow to ensure EHL survives and prospers.

At these levels generating a 50% return is not to hard. I am not saying I will rate this stock as a buy forever and if things get worse I am very willing to sell out a loss if need be, but as it stands it seems solid enough.