valuation, page-9

You had a valuation issue to start the thread.

I had the same problem some years back and what I built was a LIC valuation that took the underlying shares they hold in all the listed entities and update that by way of current share prices. Then I have looked to the discount on that. The Unlisted entities you can get a reasonable feel for and are not that material when you add them all up.

The valuation which values own assets around $3.00 suggests the underlying value is around $18.00 so around $15.00 that is mostly the sum of the parts valuation of SOL that you can get a good market handle on.

The discount has dropped as it was above 20% when they were fighting with Perpetual who wanted TPG unbundled and for huge CGT to be paid over to the ATO... Wonder if it would have been a great idea in light of subsequent events.

Certainly TPG has dented it but not as much as I expected. You have to take a view on BKW, NHC and TPG to decide if you want to be a shareholder... I personally have no issue with any of those as I dont think the government will kill TPG through the NBN and I think coal has a role to play going forward - The building boom may me mature but I think BKW has a great proposition.

Then there is management whom you have to give credit to for the structure , past performance and lately being pretty opportunistic at times.

DYOR - that is just my opinion and how I got around the valuation process. I must admit though that its part of my income portfolio as it has not shown a lot of share price action in the past 3 years...