Two very low-key companies on the ASX – in my view – are Brickworks and Soul Pattinson.
They have had a long history together with cross shareholdings.
Brickworks corporate positioning is interesting.
Prime Facia, a brick and roof tile company and you would reckon that at this point of the housing/economic cycle its future would not be bullish... but let’s look at the daily chart for starters:
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Brickworks (BKW): Daily Line Chart
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The daily indicates it has reached a peak.
A fair call.
The weekly below indicates upside.
I would agree with that call:
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Brickworks (BKW): Weekly Line Chart
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Upside after a pullback...
But that pullback is not far away from possible completion. So worth watching.
You and thousands of others will be watching as it a solid company albeit boring for some.
Often for long term stocks boring can be good. Especially with companies that have hardly put a foot wrong. In contrast to other companies that I have written about in recent months.
Well and years.
I have had personal insight into Brickworks and Souls over the years and at that time I recall they operated in tiny offices, on the smell of an oily rag.
Almost cloistered to the public but solid managers.
Brickworks also has a lot of old brick, earthing sites which are ripe for development and this aspect of their business attracts close attention.
BKW largest investment is a 42.9% holding in Soul Patttinson who in turn has a 45.9% ownership of Brickworks.
They are both investment companies – little to do with bricks or aspros.
They buy solid blue chips when value presents.
But they also get to pour over all sorts of seed and mezzanine and float opportunities. They are choosey and pick the eyes of them.
They have a good nose for what will fly.
Both are stocks worth following and the reason I write today about BKW in particular is that a buy is sort of staring at us.
And, lastly, don’t be led astray by a stock name.
Enjoy the ride
Tom Scollon
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