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| Price Slide in the Offing? |
It takes two to tango, so they say.
In YTL Corp's case, they certainly have tango out from the dance hall into the adjacent cesspool.
In its apparent haste to de-list as many of its companies, the YTL Group has taken out their most valuable listed assets.
First, it was the privatisation of YTL Cement and with that they no longer have to pay the minuscule dividends to the shareholders nor waste anymore money on its listing status.
Next, they intend to take YTLPower out as well as their Malaysian power concessions have not been extended.
So, YTL Power will be privatized by and by and will soon buy into energy plants perhaps in Europe and Australia.
What I felt distasteful about YTL Corp in spite of its sweeteners such as their distribution in specie of its Treasury shares as well as selling its YTL Power warrants on the cheap, is its never-ending market operations to buy back their corporate bonds by issuing YTL Corp shares at low prices from RM 1.60 to RM 1.80 apiece depending on the current prices of YTL Corp shares then.
This internal dilution caused any potential run-up of the prices to pause and YTL shares is stuck for an extremely long time below RM 1.80.
Then we havethe other tango partner - that sly barracuda swimming in the Bursa every trading minute-EPF and in its train-its trading agents.
While one agent will sell the share down, another will buy it creating unnecessary trading activity.
Every time the market turns sour, YTL Corp will slide about 5% thanks to these agents.
If at all, there is YTL Corp Treasury action, it seems not to work.
Currently, YTL Corp shares are trading at RM1.56 as EPF has now turned buyer after selling them possibly in the mid RM 1.70s. You can check these records on the Bursa site.
And with the political uncertainties swirling; and the flip-flopping Selangor MB deciding not to dissolve the Selangor State assembly anytime soon, we may have to wait a little longer for YTL Corp shares to find a price that will find traction.
Remember any upward action or even stabilising play could be the work of EPF or stale bulls.
Do not expect day traders on this moribund counter.
For the moment, any bad news will stumble YTL Corp shareholders and the price of YTL Corp may just tumbled below the RM 1.50 mark!
Caveat emptor.
