valuation, page-12

Not sure I agree - In my model it treats cross holdings like treasury stock - ( Shares held by the company in itself).

If you back out the cross holdings of BKW in Sol you have to compensate for those shares...

My model was originally developed to value SOl but that also became a model to establish relative weightings of discount to determine whether BKW was a cheaper entry. I may in fact do what you are saying because the model values each company and then takes that into account.

I understand your concern and had the issue myself originally but don't remember the exact steps to getting where I am now. What I do know is that my valuation is somewhere between Intelligent Investor base case and their high case as they discount the current share prices, They have not updated their sum of the parts for over a year now so cannot look more closely at it.

One thing I will say is that the share price has not benefited from its diversity over the past 5 years as there has always been at least one cornerstone investment in the doghouse. Early on it was BKW , then NHC and now probably NHC and TPG.

What it has been able to do is be a defensive stock I have only purchased in the lower ranges which keeps it in the green. Its really an income stock for me as I have never had all the parts firing. Personally at the moment I think that NHC can be the really be a big winner again. The risks are whether the QLD government does not approve the expansion to its QLD operations which extends its life by 10 years. If they do then NHC becomes a really low cost producer with 2 assets.

Personally I think TPG is oversold and to assume that management did not understand the challenges facing the industry when they purchased iiNet would be naive in the extreme. They are long game players and have been sensational in understanding how the market will unfold. Intelligent Investor just upgraded TPG to buy and purchased a stake in their funds.

In the end my backdrop has always been to purchase below $15 a share for SOL and relatively below $13 for BKW - these are current values which suggests a 20% discount... Both dipped into buy range last month.