YTL-Retail Risk Takers

Eye-balling the deals done today on YTL, there were some big deals-some were in 1,000s while there was one in a 3,000 lot tranche.

Apart from that, it was mere nibblings; very likely, from retail buyers angling for some quick profits if the counter should move up quickly to RM2.00; and possibly some day traders hopping in to cash in from some arbitrage gains if foreign funds and other local institutional funds should start taking up positions.

Right now, they are trading at the RM1.75 sen, about 7 sen from the all-time high of RM1.82.

If the tsunami surge should come perhaps in a week's time, then this counter may move up with traction; at least to the next rung of RM1.80.

We really do not know what Francis is up to but we know that those who converted from YTL Cement have already had a profit of 32 sen in their pockets.

Though, the conversion has resulted in a massive influx of new shares into YTL Corp,this has been ambivalently balanced by the cash horde that has been remitted into the coffers of YTL Corp.

Also the net asset of the share will have gone up with the injection of YTL Cement's assets.

I am pretty sure that YTL is in the market to buy Treasury shares after amassing 6.77% of the entire shares as of yesterday.

The market has just ended with YTL Corp pegging on 7 sen to RM1.80. This is earlier than I have anticipated.

That it has ended at RM1.80 is indicative of a support price likely from Treasury buys, mopping up day traders who have taken profit from arbitrages.

Tomorrow is Friday. In all likelihood, there will be profit taking all round.

I believe, if world markets continue to be supportive, YTL Corp may spring up to RM1.90; before settling down at RM1.80 or better.

A self-fulfilling prophecy of RM2.00 is just about to come true.

That will be next week's action.