Intelligent Investor

Soul Patts surges

After a surge in Soul Patts share price, what now?
By · 6 Nov 2015
By ·
6 Nov 2015 · 1 min read
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Recommendation

Washington H. Soul Pattinson and Co. Limited - SOL
Buy
below 15.00
Hold
up to 22.00
Sell
above 22.00
Buy Hold Sell Meter
HOLD at $15.92
Current price
$32.50 at 16:40 (19 April 2024)

Price at review
$15.92 at (06 November 2015)

Max Portfolio Weighting
6%

Business Risk
Low

Share Price Risk
Low
All Prices are in AUD ($)

For a seemingly dull business the share price of Washington H Soul Pattinson has been volatile, leaping over 20% over the past three months to comfortably surpass our recommended buy price.

Brickworks, TPG and the Soul Patts equity portfolio are all performing well, offsetting poor results from one its largest holdings, coal miner New Hope Corporation.  With its carefully constructed portfolio of business and long-term perspective, Souls is an excellent alternative to LICs and ETFs for conservative investors – at the right price. This is a high-quality business but we prefer not to chase the share price higher. We're downgrading to HOLD

Note: Our Growth and Income portfolios own shares in Washington H Soul Pattinson.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.
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