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Does MM like SOL &/or BKW?

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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

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.

 

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Brickworks (BKW)
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