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Dutton Associates Announces Investment Opinion: Elron Electronic Industries Strong Buy Rating Maintained By Dutton Associates
ROSEVILLE, Calif.-(Business Wire)-June 27, 2008 - Dutton Associates continues its coverage of Elron Electronic Industries (Nasdaq:ELRN) (TASE:ELRN), maintaining its rating of Strong Buy and a $19 price target. The 14-page report by Dutton senior analyst Barry Raeburn is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.
At current price levels, Elron continues to represent a compelling opportunity, in our view. For the last 12 months, investors have not recognized the disparity between the Company's underlying NAV and the publicly traded market value of the Company; we believe that the investment community is awaiting the presence of tangible and immediate catalysts. We cannot predict when these catalysts will arise but we do know that Elron has the most promising group of companies in its long history. Value will be created as these companies mature and accretive events will return capital to Elron causing the current NAV discount to narrow and possibly turn into a premium over time. Over time, there are many positive catalysts in the form of news flow, product developments, and customer activities within group companies that could positively impact the Company's valuation. In our view, the Company's shares should not trade at a discount to net asset value. At the current market value, we believe that investors are getting an inexpensive call option on the value of the Company's group of private companies and the value of the private companies continues to improve. Elron's group is composed of about 30 companies most of which Elron carries a greater than 20% ownership stake as it has reinvested in its group companies as they grow. With the stock just above multi-year lows and the historically large NAV discount, a significant opportunity exists for patient investors, in our view.
About Dutton Associates
Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.
The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. We received $95,000 from the Company for 12 quarterly Research Reports with coverage commencing on 9/08/2005. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.
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