YTL-Will it Pay?

This is Day 3 of the ex-split. Not much magic has been spun.

That is good and that is also not so good.

Let us look at the not so good and see whether there exists a silver lining before we look at the good.

The price has only risen 11 sen since YTL Corp (YTL) went ex. For those who wanted to see a spike in price, it was downright disappointing. Many expected it to race to the moon. That did not happen. It did not come close even to touch RM1.80.

Right now it is languishing around RM1.70. Hopefully the fantastic Wall Street overnight performance can translate into something for YTL today. As always, expect sellers to come in drove if prices move up too rapidly. Then gestation will have to set in before price can really firm upwards.

So, where is the silver lining? Can anyone see it? I have not.

The good news. There is also none in the short term until something appears before YTL holds its AGM sometime in late November. That is another 7 months to go. By then, we should know what dividend will be paid up too as well as revenue generated.

As the market is buoyed or stymied by sentiments,I would say there is good sentiments for a blue chip such as YTL. Chances are there will be more investors than speculators in YTL and so I see more chance of a price rise in the offing in the medium term.I expect most fund managers to buy in and lock it for the long term. Not many such opportunity for a blue-chip counter such as YTL. This is the prime buying period and so I believe more buying is on which is seen by the incessant bargain hunting and the huge block transactions.

There was no magic today with YTL shares touching a low of RM1.68 before ending flat at RM1.70.

The shares goes split officially tomorrow.