What does MM think of Perpetual (PPT)?

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Question asked 11/12/2021

What does MM think of Perpetual (PPT)?

James,

I fell into the trap of not selling a stock that is CGT Free. I inherited Union Fidelity Trustee Company in August 1995. There has been a succession of takeovers. At the most recent takeover, Perpetual acquired Trust Company of Australia in Dec 2013, and Perpetual shares were trading at $53 post-acquisition. The price has never recovered from there in spite of strong reassurances from management since then, it hit $40 or so this spring and thought that I’d cut my losses at $42 but didn’t sell, and has now tumbled to $34. I’m in despair of this company! What is wrong with it?

David G.

Answer

Hi David,

Its not just PPT, the whole fund managers space has experienced a relatively tough 2021 even as the bull market kept on rolling. However we like the risk / reward towards PPT around $36 supported by an estimated 6.2% fully franked yield over the next 12-months, we took profit on PPT in October 2020 for our Income Portfolio above $42, its again tempting after its over 20% correction.

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Perpetual Ltd (PPT)

LAST UPDATED 10/12/2021 16:57

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