Don't get too hung up on book value. I am a retired CPA and I don't have much confidence in book value. GAAP are very conservative to the point of almost useless. The property that PKX owns may be worth ten times the amount shown on the books and GAAP rules don't usually allow a write up. However, if it falls to half the value on the books a write down is required. The best way to value a company is discounted future earnings and that is a whole different ball of snakes. In fact almost no stock trades at its' true value anyway so why bother. The only reason to bother is that in the long run the stock price will approach true value so you don't want to be on the wrong side of it.
Future earnings is part of the picture. Don't put all your eggs in that basket either. There are a lot of things that have value with little earnings power, like gold and your house. There are many great investments without earnings power. (There are a lot of poor ones too.)
A lot of smoke and mirrors can go into earnings reports and book value. Look at tangible book value to get one measure of the value of your investment.
Laurent LaBrie Editor: Longs, Shorts, and Mini-Skirts labrie.liv-n-letliv.net/longs-shorts-n-mini-skirts.html