Bad Business Trust Share Performance: HPH Trust and Perennial China Retail Trust | Investment Moats Skip to Content

Bad Business Trust Share Performance: HPH Trust and Perennial China Retail Trust

Folks reading this blog would know that I got into HPH during IPO and turns out that this punt fell utterly apart when it crashed from IPO price of USD 1.01 to USD 0.95.

Today the price of the business trust reached a new low at 86 cents. Business trust as an investment in Singapore is really about an extreme theme of sponsors dumping assets to investors like me at an obscene price.

Reviewing many business trust as compared to dividend stocks and REITs seem to point to a trend where they are unable to keep their share price above IPO price.

The lure of high yields proved to be too much at times, but as investors we stand to lose more in terms of capital loss after factoring dividends.

Today another business trust was listed. Perennial China Retail Trust, which provides a yield of 5.3% despite pricing at the lower end of the spectrum (70 cents to 76 cents)

Its debut closed at 61 cents.

Still opportunity when timed correctly

Like all investment assets, there are good ones and there are duds. Business trust seem to be much worse currently because sponsors really use them as dumping grounds.

However, if you keep your time frame intermediate, and have a nose to really analyze their assets versus their valuation, you may be able to uncover some turnaround plays, or trusts that have their price beaten down but are really not that bad.

Treasury China Trust seem to be one that bucked the trend. Although it is a china business trust that develops real estate as well as managed china real estate paying out a 4-5% yield, its been buying back shares (not sure why) and have rewarded share holders who are willing to do scuttlebutt research with a nice recent price appreciation.

For those interested in tracking my most current holdings, you can review my portfolio over here. Learn to use our Free Stock Portfolio Tracking Google Spreadsheet to track stock transactions.

Free Online Investment Stock Portfolio Tracker Spreadsheet
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Sean

Tuesday 16th of October 2012

Like your analysis...

donmihaihai

Tuesday 14th of June 2011

How much I will pay for it has nothing to do with share price movement.

A business trust is a just another structure to house businesses and it require the understanding of underlying business and business trust.

Can business trust be a good business? Now let me ask you, can a limited libility company be a bad business?

Drizzt

Thursday 16th of June 2011

hi dnhh, think i probably mixed up the structure of the product vs the underlying nature of business operations. What i am highlighting is that many factors other than what it actually does were done badly.

my answer to your question is that business trust such as FSL can be mismanaged and so can another LLC company be mismanaged and yet be a good business.

donmihaihai

Monday 13th of June 2011

share price move up = good business share price move down = bad business

Drizzt

Monday 13th of June 2011

the question here is for its cash flow how much do you pay for it. what is your take on business trust dnhh? can they ever be good business?

Musicwhiz

Saturday 11th of June 2011

Hi Drizzt,

Yes I meant that I can see the portfolio value on any day I choose, even the past values/cost etc and dividends received to date as well.

Steven

Friday 10th of June 2011

Hi,

i like your Stock Portfolio Tracking Google Spreadsheet.

i try to duplicate create it and find it not easy.

Other than "Cumulative Units [2]" is under the formula, the rest all manual entry?

your "Stock Summary" does it contain any formula?

thank you.

Drizzt

Saturday 11th of June 2011

Hi Steven, thanks for trying it out. As a rule of thumb only cells which are in yellow or dropdown need entry. cells in blue contains formula.

My stock summary page does contain formula for quote price entry, last price,units,cost,cost (per unit), unrealised gain/loss,realised gain/loss.dividends collected and market value

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