YTL Corp: Is it Magic?

The Malay word for it is lekat. Will the price hold? Will the stock price holds traction?

Today, 14 June 2012, YTL Corp went ex-all, to the chagrin of all its shareholders.

As the counter started trading there were lots done below the RM1.89 ex- theoretical price. Most were done at a loss of 2 sen at RM1.87. Slowly, buyers came out to square of the price at RM1.89 with some heavy volume trade of tranches of 1,000 and 2,000 lots. As the morning session drew to a close, buying were mostly done by retailers. The counter clinched 4 sen to RM1.93 at the 12.30 noon-day close. Will it stay at this price or will power buying in the next few days propel it to higher prices?

I do not believe that YTL Corp  is conducting Treasury buys as yet.

A person who buys a 1000 shares at RM1.96 just before it went ex-dividend of 2 sen per share (RM20.00), would have paid circa  RM1,990 for that transaction. With the proposed payment of the RM20.00 dividend, his share purchase price will be lowered now to RM1.97 per share.

Factoring in his gains of 66 dividend share at RM1.93, this will come to a profit of RM127.38.

Seen in another perspective,this profit of RM127 will help further reduced his purchase price by  another 12 sen or effectively at a lower purchase price of  RM1.84.

Then, there is the 66 YTL-Power warrants to be issued at only 20 sen. At the current price of 43 sen, that means he would have made a further gross profit of  RM15.18 after subscribing for it. After deducting  RM10.00 for government stamp duty, his net profit will be RM5.18 sen.

There is again, the opportunity for him to buy excess shares if he is daring enough.

Assuming there is mass selling by the YTL Corp shareholders of the distributed warrants and it goes down by 30 percent (13 sen), the warrant  could still be sold at 30 sen to reap at least 10 sen gross profit or about RM100.00 per 1,000 shares which can be considered great as it reflects a return of 10% on such a short duration!

I expect YTL Power shares to move upward as more than 75% of YTL Corp's revenue comes for the overseas utilities in UK and Singapore.

Moreover, Francis Yeoh, with a thumping war chest of RM14 billion, is definitely looking out for bargains given the background of the current fall-out of the Eurozone which now includes Spain and Cyprus! Assets can now be purchased at really fair prices! So, Francis is looking high and low  for low, low prices!

Do not be surprised to see YTL Corp, YTL Power and the YTL Power warrants going up soon.

So, the backdoor way to amassing YTL Power stocks will strategically be through YTL Warrants.The exercise price is RM1.21.

The current price of YTL Power is RM1.64.

Theoretically the conversion into YTL Power  will involved cash of RM1,210 and twenty dollars of warrant or altogether an outlay of RM1,230.

This means that given today's price of RM1.64, there is a further discount of RM410.00 if the warrants are converted.

So, what should be the strategy now?

For me, buy YTL Power and YTL Power warrants!

PS:

At the end of the day, there was a barrage of sellers selling it down to RM1.86 again. It ended up at RM1.91 for a two sen gain though there were only buyers at RM1.87;indicating possible Treasury buy in to support the price for some reason only 'those people' knew.

Anyway, let us see whether there is improved traction tomorrow which is a freaky Friday for stocks.

Translation: Be Smart!

Yes, be smart. Don't do what I did.


Cari pasal.

I thought I was a wonder kid.

When I was offered an Annual Report of 172 pages to translate from Bahasa Malaysia to English , what did I do? My response?

"Boleh," I replied.

"Can-ah, do in ten days?"

"Can,can!"

Then when I got your teeth into it, I found it was more than I could chew!

Cough, cough; choke,choke...............

It was not the many pages, my friend.

Literal direct translation without  any need for referencing and looking for the equivalents in nomenclature would have made this translation assignment a breeze.

But I think I got the short end of the stick.

This was an official document of  a government agency with all those weird sounding names of committees, panels, programmes, activities  and minutes too  et al  and just cross referencing using a dictionary or Google and internet search can wear one down.

Sheer murder!

Then there is that need to ensure uniformity of terminology which you can only do so at the end of the project.

Thus far it has been a hassle and I am pretty sure that 'sepuluh hari tak jadi-lah" and with bowl in hand, I will have to beg for an extension.

Poor me. Having backache now from seating and slumping  in front of the keyboard for too long.

So, if you intend to get into translation, be smart. Know what you are in for.

Make sure that you ask for a longer time and make your agreement flexible enough to accommodate that.!

Lastly, ask for more money!

Playing Dunking Doughnuts!

It looks like there is a pandemic disease on Bursa KL. It must have got so bad that many counters are taken private.

YTL Cement is gone.

Proton and Esso are already going through the process of delisting.

First to go on the block lately was UAC. Citing reasons that it is hardly been traded, the Boustead Group are taking it private.

Today, I read that YHS(M) is also being privatised.

I think there are many more  in the pipeline which will go in that direction

YTL Corp:Rewarding Shareholders

I knew it will happen as YTL Corp  kept on buying Treasury shares. So yesterday, they announced a redistribution of the Treasury shares where one share in distributed in specie to shareholders for very 15 units  they held. YTL Corp closed up 7 sen at RM1.89 this evening.

A true bonanza and with a discounted sale of YTL Power warrants  in its holdings to YTL Corp shareholders.at a steep 53% discount to boot. So, a YTL Corp shareholder can now  avail himself to these warrants at only 20 sen each instead of the market price of 43 sen.

YTL Corp has a cash hoard of RM14 billion currently and is apparently looking out for mergers and acquisitions as these are now on offer at more reasonable prices. According to Francis Yeoh there are malls in China and Australia worth looking at. To him, any opportunities with 7-10% yield is worth evaluating for a buy.

At InvestMalaysia yesterday, Francis denied he will sell any of its assets under the Group. No way will he sell Wessex as it is a top world company. Currently, 85% of YTL Corp's revenue and profits are from overseas.

YTL's earnings rose 16.9% to RM364.82 million in the third quarter ended March 31, 2012 from RM312.05 in the preceding year. Revenue rose 23.5% to RM5.24 billion from RM4.24 billion

So, are you buying any more YTL Corp shares to get the 'goodies'?

Jessica and Phillip- A Winning Duo

As the fanfare fades,and the American Idols contestants leave for their summer tour, we are left to ponder.

Would be have mattered if Jessica had won and Phillips were runner-up?

So, Phillips have wowed the crowd at the Nokia Theater and his last number has  brought the trophy home for him.

After revisiting all the performances and the songs he sung on the competition, I think he is definitely deserving to be in the finale. That he won was just plain good luck and perhaps some sympathy votes for his kidney condition.

For Jessica, she may not have won the bragging rights to be the American Idol title but I love her maturity of humility in the face of defeat. Her attitude was right and she has won many a heart.

We do not know the trajectory for Jessica in her future music career but I know she has the talent to make it BIG!

She is dynamite!

So, Bebe Chez perform on the world stages, grow up prettily  and sell records the whole world over.

Love is in the air and your fans love and adore you.

Peace, love and happiness to you always.

Jessica Sanchez: You Only Live Twice

So sings Nancy Sinatra- One life for yourself and one for your dreams.

So it is sweet dreams to Jessica as the title fell from her grasp.

Jessica lost the crown to Phillip Phillips.

I think the victory was well earned by Phillip  though he appears to square off with Jessica in two numbers . His last song 'Home' especially the presentation part with boys marching in with kettle drums  was pizza cheesy overdone as if it appeared from a scene  of the Oompa Loopa people parading right out  from Willy Wonka and the Chocolate Factory!

Well, that is how Americans have voted and they will have to live and love that outcome.

For American Idol, I think their voting  in another guy with a guitar will spell the end of the excitement that thrills when Kellie Clarkson, Carrie Underwood and Jordin Sparks won the competition

For, Jessica it is time to move on to bigger and larger things.

On the Cusp of Victory-Jessica versus Phillips

The AI Finale-An Even Match

As I have said before, there is no comparing two budding stars especially if their styles are diametrically different and there inherently  lies the major flaw of the American Idol format.

What American Idol is doing is to present two really good performers and let the fickle American voting public have their way. Sadly, Randy's reminder that the show was to demonstrate singing talent will be lost tonight amongst the heady voting public of the USA.

By tomorrow, we will know whether another 'White Man with a Guitar' wins or the more passion-evoking budding songstress takes home the AI crown.

Let us look at the performances of Jessica Sanchez.

She sang the first song, “I Have Nothing”, selected by Simon Fuller. Did she do Whitney proud.? Oh, yes, I think so. So, a plus from me here.

Then she reprised a self-chosen “My Prayer”, as usual singing it faultlessly. The Italians would be curling their toes! Mama mia again to Jessica in this round from yours truly.

The final song Jessica chose would be the one to launch her maiden album if she wins this competition.

She sang “Change Nothing” to the wows of the crowd  at the Nokia Theater though the judges had mixed opinions.

The saving grace was given by Randy who said that Jessica brought life to the song.


I thought this is still very good.

As for Phillips, Simon Fuller chose the nostalgic oldie by Ben E. King, “Stand By Me”. I would say it was good but there was a distinct lack of soulful passion in his delivery. Really so-so to me

So what is the judgment on Round 1?

While Randy said he favours Jessica in this opening round, Jennifer called it the ‘battle of opposites’, lamenting that Americans will have one tough job to chose here.

For Round 2, Phillips chose Billy Joel’s “ Moving Out” against ‘The Prayer’ by Jessica.

 Steven Tyler said, "Jessica took this round again," but Jennifer dissented, saying the round was definitely Phillip’s. Randy side-stepped by saying it was a ‘dead heat’ round and gave it ‘an even'.

For round 3, all the judges seems unhappy with Jessica especially her choice of song.  She sang  "Change Nothing". However, Randy was man enough to say positively that  Jessica ‘made something more out of the song’ and  "brought the song to life."

Jennifer Lopez obviously did not know what she was commenting, very equivocal, saying she 

was surprised at the pop song choice by Jessica though she could see Jessica gaining enormous success in this genre commercially and not know the reason why. Very convoluted, coming from you, senora!

Phillip's original song and his thrid song choice was called "Home" which he felt real at home performing. Very cheesy performance fit for a snack commercial. Randy loved it calling it brilliant while Steven (as is always in his element) gave it his thumbs up.

So, now that the phone lines are abuzzing for the nest four hours or so, and American voters at texting and voting on-line as well to determine who will be American Idol for the 11 Season, what are your views on watching  all the 3 performances by both contestants?

For me, I give my vote to that sweet sixteen because of the passion that she sings all three songs at the finale. Certainly world class and destined for even bigger global success. 

For Phillip, good show especially with that final marching number taking the show to a close. As his singing is limited to certain genre of songs, he does not emanate ‘exciting electrical bites’ in the air. Except for his soulful rendition the folksy way, which can gets boring, I think he will be the runner up.

Anyway, one never knows whether Americans will vote in an angel of song or a wild turkey this time around! Just look at the voting after 2008 and you would know what I mean.


Some voters can be real rednecks, mind you.

And that could be upsetting, right? Jessica?

Let us wait for the popular vote now.