Forum Topics SOL SOL SOL valuation

Pinned valuation:

Added 3 months ago
Justification

Washington Soul Patts - I hold in RL 20% SMSF and SM 20% and have topped up over the last week.

i have mistakingly traded in and out from 2022 when I should of held through. Half year results show a compound 9.6% dividend growth over 24 consecutive years. Unbeaten on the ASX

Using a gordon growth model, smoothing out their next dividend and dropping the div growth to 8% and applying 10% discount rate I get to $40. Most on Strawman don't need any further info on what Soul Patts does, but the director buying in the past week including a lazy $17million from Rob Milner gives you a pretty good indication their strategy of growing dividends is on track in what is a volatile market.

Currently sitting just below their 200MA and although on Strawman there is a particular focus on small cap and growth companies, I think this company is probably at a fair value potentially a good discount where you can top up over time (at least the next 20years for me anyway)


thunderhead
3 months ago

I have been looking at buying BKW in a similar vein.

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west
3 months ago

absolutely @thunderhead I usually pick up some BKW (RL 12%) whenever the opportunity arises, have had a few opportunities over the past 3months aswell, given its volatility. c317da4f62fa88c921c10a21c25ec4a8f38c87.png

this slide really re-inforces you are simply buying SOL like a "class b share" style.

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thunderhead
3 months ago

Pretty much. BKW offers exposure to SOL at a better relative valuation overall, as has been the case for a long time - the market is discounting its cyclical brick making business more.

Unfortunately, I didn't take advantage of any of the recent volatility as I was being a tightwad. Could have got a much better price than current levels, but here's hoping we get more down the line.

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