This is what I attempted to post a few days ago: it failed for...

This is what I attempted to post a few days ago: it failed for some reason

Iam not sure what you mean. Are you saying the NTA assets are not there? My viewis simple - The assets are there but we don't get much of a return frombrickmaking at the moment and over a long time the market ( and myself ) hasviewed the brickmaking business as mostly worthless. Its captive capital thatgenerates returns but at times the deep cycles means that the return is prettypoor. My view of this business is that its market value is made up of itsinvestment in SOL and then the property in the JV. The Brickyards business youget almost for free. The brickworks I see as a feeder for the property JV -They are assets that generate poor returns until the sprawling city growthreaches the brickyard and by then its fully depreciated and mostly used up.However the land value has grown and as such its a desirable JV addition. Thedeeply cyclical business isn't ideal for a listed entity in Australia we liketo value the business based upon its franked dividends.

I always look at brickworks by following thelargest brick or building supply company in the world. Wienerberger. Theyflagged large write-downs of assets to June this year. The clever accountantsin the world have reached the point that they create accounts that no longerreflect reality. These valuations of productive assets based upon a snapshot ata point in time assumes there is no deeply cyclical operating environment.

We should have flagged that BKW was going tohave to write-down Astral in February when it went into a court case againstBGC (Buckridge Family). It appears BGC acquired Midland Bricks in WA andhas a very large market share and has been spanking our operation there. Itsset for court hearings in early 2025 and BKW wanted it set down for later in2025. You don't pick a fight and seek disposal orders unless you are gettingspanked.

Its laid out in a Sydney Morning Herald articleon 11 February 2024 by Sarah Danckert. The fight of two billionairefamilies ... So you now write-down the assets based upon what appears to be aprice war. It is one of my pet hates about the Milners - So how come this canbe reported but is not highlighted at the half year... It does seem theyoperate on another level when it comes to disclosure.

It appears they love smoothing profits over thecomplete cycle and these irritating accountants are forcing them to take asnapshot every 31 July.

I agree with them my house real value doesn't goup or down because the market has a shortage or a surplus or high or lowinterest rates.

No I am not a genius - I just decided a few daysago after the announcement to see if I could find dirt.

So my view is the NTA is very important but youwill only be able to access that value at times when brickmaking is highlyprofitable - especially in a country that loves valuing shares based uponfranked dividends. I vote we sell these pesky brick making companies when thetime is right and become a diversified investment company. Mr Market isincorrect there is value in these cyclical businesses just not here. Doyourself a favour and look up Wienerberger.