SOL - Washington H. Soul Pattinson and Company

[divs4ever]

does BKI need to grow any bigger ( than natural organic growth , sensibly investing the cash reserves when opportunities arrive )

 

[Ferret]

Surely SOL is in oversold territory at close to $25.

I want to top up, but the chart is still ugly and times very uncertain.

 

[Dona Ferentes]

Surely SOL is in oversold territory at close to $25.

I want to top up, but the chart is still ugly and times very uncertain.

Been looking at it; any 'premium' that the SOL magic could create seems to have been stripped away, and it probably looks like MLT valuation @ NTA, nowadays. I'm sure they will be keen to maintain their record as "the only company in the All Ordinaries Index to have increased its dividend every year since 2000 "so that should underpin it.

 

[finicky]

I want to top up, but the chart is still ugly and times very uncertain.

I echo your sentiment on the chart and times. I hadn't noticed how poorly its chart was faring.
Looks like its H1 report is a month away going by last year. Maybe it will start to lift in anticipation of that but meanwhile no sign of monthly chart improvement I can see.
It's one I have thought of buying when I get more conservative although I feel more interest in BWK because of its organic land development segment and association with GMG.

Monthly

 

[divs4ever]

i bought in @ $13.10 over a decade ago , as an investment ( looking for div. returns ) it hasn't been overly impressive ( imo )

BUT as a financial analyst subscription ( giving opinions on companies they have invested in , it has been useful and profitable .. i have the SOL investment back in crystallized CLV profits alone , and CLV wasn't the only goer )

now i am NOT giving financial advice , but check out those LIC reports sometimes there is a gem mentioned in there

DYOR

 

[divs4ever]

I echo your sentiment on the chart and times. I hadn't noticed how poorly its chart was faring.
Looks like its H1 report is a month away going by last year. Maybe it will start to lift in anticipation of that but meanwhile no sign of monthly chart improvement I can see.
It's one I have thought of buying when I get more conservative although I feel more interest in BWK because of its organic land development segment and association with GMG.

Monthly
View attachment 138128

some of the new ( ex-MLT ) holders looking for the exit ??

very much apples vs. oranges comparing MLT to SOL and i suspect some won't like the new metrics

( i hold SOL but never quite got my target price for MLT )

DYOR

 

[Belli]

Many former MLT holders sold before the merger. SOL was overpriced and it was noticed it was issuing expensive script for the MLT assets. Akin to buying a $1 of assets for 50c.

AFI was a large holder of MLT but sold before the merger as it considered SOL was overpriced.

ARG was another large holder of MLT but I noticed in its latest half-yearly report no mention was made of any special dividend which is normally the case in these circumstances. As well it was mentioned in the media release SOL was a partial sale but not fully removed from the ARG holdings. Issues of appropriate weightings there of course but gives one pause for thought if a larger holder isn't sufficiently enthusiastic hold more of SOL.

As well, many may have concerns at SOLs approach for its MLT subsidiary of moving from an ASX focus to international holdings.

It's an unusual structure. I am not sure where Contract Asset Management sits charging 0.1% for managing the Large Cap folio of SOL yet there is MLT with, at present at least, holding similar.

Washington H. Soul Pattinson - WHSP Large Cap Portfolio

WHSP Large Cap Portfolio is a high conviction portfolio of quality ASX listed companies that can provide an attractive income stream & capital preservation.

contactam.com.au

I hold SOL outside of the SMSF and have for years. Apart from adding in 2020, I won't be adding more. It's just there to provide some Christmas spending money now.

 

[Garpal Gumnut]

Surely SOL is in oversold territory at close to $25.

I want to top up, but the chart is still ugly and times very uncertain.

Thanks @Ferret .

SOL has been for me over recent years a "Held but sold too soon" stock so I have always glossed over it on this forum and in financial media.

My hindbrain animalistic self must admit to smelling a meaty entrance, but the skin has been barely pierced.

The chart is in a proper downtrend, unusual for the Milners'.

So roll on a proper correction.

gg

 

[rnr]

Thanks @Ferret .

SOL has been for me over recent years a "Held but sold too soon" stock so I have always glossed over it on this forum and in financial media.

My hindbrain animalistic self must admit to smelling a meaty entrance, but the skin has been barely pierced.

The chart is in a proper downtrend, unusual for the Milners'.

So roll on a proper correction.

gg

Just thought I would post a weekly chart showing the action from 2014 to last Friday.
Since the ATH of $40.80, set on October 1st, 2021, price has moved steadily down in a 3 wave pattern to reach Fridays low of $24.76 and a close of $25.28. This equates to a retracement of approx. 62%.
Given the support around the $25 mark it wouldn't be unreasonable to expect a move higher from these levels.
Unfortunately there are no guarantees on expectations.
Cheers, Rob

 

[Dona Ferentes]

From the last published breakdown the AGM on 19 Dec,, and after MLT was absorbed.

Post-merger, WHSP has divided its portfolio by asset class
Portfolio overview
Net Asset Value of WHSP (pre-tax) as at 30 November 2021 was $9.5 billion , comprised of
Portfolio .........................................Value ($m)
Strategic portfolio (1) ........................... 4,263
Large cap portfolio (1) ......................... 3,469
Private equity portfolio (2) ..................... 641
Emerging companies portfolio (1),(2) .... 545
Structured yield portfolio (1),(2) ............ 360
Property (2) ................................................169
Net working capital (2) .............................. 78

(1) At market value
(2) At cost or Directors’ valuation

So, the lion's share of SOL is equity (1) and generally priced daily. MLT had a significant and large majority holding of Direct Equity, or (1), with a very small allocation to (2). Total Milton market cap back then was about $3.6B (?)

Latest market cap for SOL at 25/2 is $9.123B.. The ASX hasn't really gone anywhere; at end Nov, XJO was 7256 and it closed at 6998 yesterday. My view, and as I said yesterday #103:

any 'premium' that the SOL magic could create seems to have been stripped away, and it probably looks like MLT valuation @ NTA, nowadays.

I'd change that to 'Millner magic' but, in reality, we now have an investment house, an ersatz LIC and 'nil premium' at that; previously there was more leverage and harder-to-value assets (2) and debt(?). I'm not sure why it was bid up so high, earlier, and well done to those that bailed at a higher price.

 

[Dona Ferentes]

Washington H Soul Pattinson delivered $1.3 billion in revenue for the half-year to the end of January, more than double the $590 million generated in the prior year, after the company absorbed investment group Milton.

The half-year results also include a jump in profits from ordinary activities, which sits at more than three times the dollar level of the prior period, at $343.7 million.

The company will pay an interim dividend of 29¢ per share for the period, an increase of 12 per cent compared to the same period a year ago.

“The company has again increased its dividend and continued to generate solid cashflows from its investments. Solid cash generation from our diversified investment portfolio continued to support another increase to the interim dividend,” the company said in a statement.

 

[Belli]

SOL Reported this morning.

Lots of blah, blah and magic words in various announcements.

Only important aspect from my perspective is the increase in the dividend which is payable on 13 May. Irritating the company delays payment of it for close on two months.

 

[Dona Ferentes]

SOL Reported this morning.

Only important aspect from my perspective is the increase in the dividend which is payable on 13 May. Irritating the company delays payment of it for close on two months.

I quite like a dividend declared in late March, ex-dividend in late April and paid mid May . Locked in and loaded. And paid out of cycle to other companies. Mid May I'll be receiving $xxxx.xx. Comforting.

 

[divs4ever]

yes a certain amount of out of cycle payments , are a helpful buffer to my finances as well ( if all else fails you can save it for later on )

i will often prefer shares ( REITs and LICs ) that pay monthly or 3 monthly divs to give a steady trickle of income in between the big payments ( from the likes of BHP and FMG )

 

[Dona Ferentes]

SOL has completed the acquisition of 100% of Ampcontrol, Australia’s largest privately owned electrical engineering company. WHSP has held a major shareholding in Ampcontrol since investing in the company in 2005 and has now acquired the remaining shareholdings.

The acquisition comes as Ampcontrol accelerates its strategy to be at the forefront of developing and supplying advanced technology as well as innovative products and services that enable a competitive advantage in a net-zero carbon environment. This was evidenced recently when Ampcontrol and its technology partner Tritium were announced as a winner in the Global “Charge on Innovation Challenge” launched by BHP , Rio Tinto and Vale to accelerate the commercialisation of effective solutions for charging large electric haul trucks.

Commenting on the transaction, Todd Barlow, Managing Director of WHSP said:

“Ampcontrol is uniquely positioned to capitalise on the significant investment in resources, infrastructure and energy solutions, as the world transitions to a lower carbon economy. Ampcontrol is a high-quality platform upon which we can continue to invest and grow a world-class business, taking advantage of strong industry tailwinds and their talented people, technology, and engineering excellence.”

Ampcontrol Managing Director & CEO, Rod Henderson, said:

“The acquisition marks a remarkable new era for the Australian manufacturing business and the next chapter in its growth story. The increased ownership of WHSP will provide us with the stability and resources to take advantage of the organic and inorganic growth opportunities that the decarbonisation thematic presents.”

 

[mullokintyre]

SOL has completed the acquisition of 100% of Ampcontrol, Australia’s largest privately owned electrical engineering company. WHSP has held a major shareholding in Ampcontrol since investing in the company in 2005 and has now acquired the remaining shareholdings.

The acquisition comes as Ampcontrol accelerates its strategy to be at the forefront of developing and supplying advanced technology as well as innovative products and services that enable a competitive advantage in a net-zero carbon environment. This was evidenced recently when Ampcontrol and its technology partner Tritium were announced as a winner in the Global “Charge on Innovation Challenge” launched by BHP , Rio Tinto and Vale to accelerate the commercialisation of effective solutions for charging large electric haul trucks.

Commenting on the transaction, Todd Barlow, Managing Director of WHSP said:


Ampcontrol Managing Director & CEO, Rod Henderson, said:

So what exactly can SOL add to AMPcontrol to add value?
My only experience in working for a company that was targeted as a takeover was not good.
The company I worked for was a nimble , innovative, quick to adapt flat management mob that mostly made money.
The much larger conglomerate bought in its processes, its structures, pyramids of power mangement structures, killed the nimble innovative bit then wondered why it was no longer profitable.
Unless Ampcontrol needed capital, can't see the advantage for either.
Mick

 

[Belli]

SOL reports tomorrow (brought forward by one day due to public holiday on 22 September.)

It will be interesting to see what, if any, impact the MLT merger will bring to the results as the intention was to move that portfolio towards a more international flavour.

 

[Belli]

SOL to pay 58c ff (including 15c special) on 12 December.

 

[Belli]

From the report.

Waffle, waffle, waffle then

 

[Belli]

It won't make the slightest bit of difference to the outcome but on receiving the for for voting I decided to be bloody minded for the sake of it and voted against all proposals.