 |
| Power Maneuver |
This is a Friday-a great buying day.
Why, because you can bargain down the chute and jittery sellers who are wont to hold stocks over the week-end will give them to you with a ribbon wrapped around them.
So, why are the YTL Group are companies coming alive on this dull trading day when Astro has fallen down the toilet hole?
My wildest guess.
 |
| Power for the East |
The warrants should be issued out possibly in at least 10 days' time with returned cheques for unsuccessful excess subscribers on 5 November.
As YTL Corp holds almost 95% of the YTL Power warrants, this exercise is to convert it into hard moolah for a potential investment maneuver. It has a huge war-chest that even Kok Thai is envious!
What will that be?
To take YTL Power private?
Yes, easily done as more than 50% of YTL Power is deep in the pockets of the Yeoh family.
 |
| Syed Mokhtar and Francis are Still Standing |
If possible, give the excess subscribers all that they have subscribed until it hurts!
Then, standby the cash for purchasing of good power concessionaires globally to take the place of the potentially to be taken over power assets in Malaysia as well as the reducing power contracts in Indonesia, UK and Singapore.
The experience gathered from Wessex will be put to good use to rehabilitate water resources both in Malaysia and in the world.
This is a plus for YTL talent pool to bid for contracts based on contract records. MRCB got the local river rehabilitation based on politics Nah, no way as compared to Wessex!!
Again YTL Communications has apparently broke even this year. So YTL Power is GOOD!
So, what will happen when the deluge of shares flood the market when the YTL Corp shareholders find them in their CDS accounts on D-Day?
The smart ones will likely dispose of it like a diarrhea run to the comfort room.
For YTL Corp, it will be a mop up operation again and praying hard to the Almighty that at least 50% will hold it so that they do not have to do another Treasury buy-in from their reserves.
So how do you make it attractive to hold warrants for conversion?
Simple. Push up YTL Power through shock-troop buy-in ramp up.
Push it back to RM 2.00 and YTL Corp will move up beyond RM 2.25.
Francis may need to have a press-event to tell about great plans ahead for YTL Power as well as possibly announce a utility buy! Then, there will be great fun!!!!
YTL Power warrant shareholders, being greedy human beings,will hold the warrants until it become essence of cash!
Today YTL Power warrants have touched RM 0.44 sen and with fair volume.
The mother share touched RM 1.63 before retreating to trade on the RM 1.61 to RM 1.62 price continuum.
Next week should see action.
I foresee a price just below RM 0.50 for the warrants when the time to sell comes.
This can create massive selling and I think YTL Corp will cap the draw back in prices not lesser than RM 0.40 sen to maintain YTL group stature and good will.
No way will I think YTL Group will relegate this warrant to junk status.
No Greece, not anything YTL!
Period.
No comments:
Post a Comment