I have that as next weeks task - the rebuilding of my underlying...

I have that as next weeks task - the rebuilding of my underlying valuation of SOL. I have the details as at the takeover date but suspect that some of the large market book overs was SOL selling the shares that MLT held in SOL and BKW.

I also think that expecting them to provide monthly NTA's isn't reasonable. They are not passive minority investors they hold 100% of some things and effective control over others. To update the market each month they would have to disclose management accounts or do as ECL does hold the operating entities at NTA of last year and really only adjust the listed investments. That would also not show a true picture.I think the 6 monthly reporting is great.

I think if you look at the double page spread they put out and then put that into a model with the shares they own and just update the share prices you can get close to NTA.If you are asking why it is weak in holding the share price - I have no evidence but speaking to a few retirees they don't like watching this drift and no NTA each month. In fact they want an ARG or AFI. So my reasoning is that they are the sellers. It wont take much for retail investors to baulk at this hybrid style.

The TPG investment fear is a red herring in my opinion. The fact is that it has a value and if you take it from the AGM until now it would have lost a value of $200 million. to $1,4 million. I suspect that the uplift in underlying value of Round Oak more than compensates for the decline in TPG. However TPG - even as a woke company has a place as the 3rd operator. There seems to be some degree of consolidation and alternatives to NBN they have a lot of their own fibre and undersea cable - it has a value it will get an offer if it is cheap. So my view is if it is 16% of the SOL value of $9.5 billion and there are 482 million shares so NTA was around $20.00.

Those NTA's would have been much higher had they listed Round Oak and kept revaluing assets like say BTI do. That isn't their style. The pro forma net cash flows from Investments with MLT was disclosed as $277 million or 57c per share for 2021. As MLT was to June that would include the Covid reductions in dividend. In fact if you take the before MLT and After it in fact shows that MLT only generated 2.96% actual cashflow on its investment value in 2021. I can see through this that SOL can afford its dividend going forward and with the uplift in dividend flows has room for more. Remember these are Net cashflows from investments not underlying earnings of strategic investments.

The AGM presentation of 10 December is pretty informative.Under our small group of investment rules we are over our ceiling with SOL and BKW ( Or to put in better over in BKW and theoretically under on SOL but overall very much over). However our rules would allow us to invest all our funds in ARG for example given its diversification. So I am looking at motivating that SOL is somewhere in between and we should up our limit given its hybrid status - hence my trying to unpack where it is headed for its half year.

My view about retail investors especially in Australia and retirees is that they want information more regularly than every 6 months. They are nervous they cannot change their pot - it changes by way of the market movements so they want reassurance. This doesn't give them that. I think they read too much into the investment in TPG - if it is such a dog it is surprising that 3% of the company could be sold in December.

NHC was worth $662 million on 31 July when the share traded at $1.97 today it is $2.55 so its value has gone up by $194 million virtually the same amount that TPG has dropped by. Add round oak real value...So when people say they are not like other investment companies I say thank goodness - I don't lose performance bonuses etc. I am not paying a 1% management fee but yet I have the likes of PCG , MLT and BKI investment teams.

What retirees lose sight of is that this company actually values shareholders - they manage their investments and have a high value on keeping to pay dividends no matter how the economy is. This to me is a much better version on a LIC.

We are looking to put a few more into the portfolio and really am happy with the weakness and think it will keep being weak whilst the shares transfer from nervous holders to willing buyers. During this process the steady fall in share price is good for true believers but discomforting for those who watch value daily.