Does MM like SOL &/or BKW?
What do think of SOL and BKW ? With the recent correction are these stocks in the buy zone? Richard
The Latest Q&A
Answer
Hi Richard,
Two very different companies that look very alike on the charts given the large cross shareholding i.e. SOL owns 43% of BKW:
Washington Soul Patts (SOL) $25.44 – investment vehicle SOL has fallen 39% over the last 6-months but management have a long-term history of creating value. The companies assets includes telcos, resources, agriculture and financial services which combine to provide reliable and diversified earnings which helps the stock yield ~3.5% p.a. This another candidate for accumulation into tax loss selling i.e. an oversold quality business.
Brickworks (BKW) $19.85 – building products manufacturer BKW has dropped 25% since January but we can see further weakness down towards $18, again potentially on tax loss selling.
Of the 2 we prefer SOL into weakness.
