Friday, April 24, 2020

SOLD: Perennial

Sold my 14,800 shares of Perennial on 22 Apr at $0.43.
Total loss of -$6081.71 (-48%) in 2 years.

My remaining 38,700 shares of Perennial are been held under CPFIS.

Reason for selling:
1) Disappointing, unloved undervalue stock
I had high hope when I bought this stock back in Apr 2018 mainly due to their China High Speed Railway ("HSR") projects + in Healthcare business.
This stock have a PB of just 0.51 then.

The share price had been on a declining mode for the last 5 years.
Today, it have a PB of 0.27

Insider trading had been buying its own shares very frequently that the 4 key Sponsors owned 82.4% of the total shares.

What causes the share price to keep dropping?
I really dont have the answer and have no clue for that.

2) COVID19 bear stock market
Thanks to COVID19, there are many good quality stocks (even blue chips) dropped at least more than 30%.
I believe these good quality stocks will rebounce faster than Perennial.
Thus, taking a real loss at this moment to deploy this amount into another stocks. 

Related post:
2) Added: PERENNIAL (Mar 2019)
3) Perennial AGM 2019


  1. I guess the fall in price comes from the problem that most of its earnings are from revaluations that are mainly for its china projects. The management and rental income that they receive just does not cover the finance and operating expenses
    Yet at the same time it has always been selling its local properties away which kinda show that they might not be as strong in balance sheet.

    At the same time the covid 19 has made the stock price of most property coys like oxley fell by quite a bit.
    I had pondered about buying perennial before but i guess i was discouraged by what i have seen

    1. Thanks for sharing your useful insight..
      I guess super low dividend % also cause the share price to keep declining too..