YTLP buyback update

Since my last post on YTLP's buyback program back in May, something interesting have just occurred.

On the 28th August 2013, they cancelled a total of 250,000,000 treasury shares, while retaining 9,005,945 shares in treasury.

Based on my last post, they had a total of 137M treasury shares as of 9th May, giving a net buyback of around 122M shares in 4 months period. Using an average share price of around $1.60, this buyback is worth over RM200M.

"On 9/5/2013 - the company have approximately 137,324,245 treasury share outstanding representing approximately 1.86% of the total outstanding share."

Since then, the company have continued with their buyback program. As of today - they have a net cumulative treasury shares of 91,520,545 shares representing a net buyback of 82M in this month alone. This buyback is worth approximately RM135M using an average share price of $1.60.

Cumulatively since March 2013, the company have bought back approximately RM452M worth of its own shares. 

Tan Sri Francis Yeoh have repeatedly mentioned that YTLP is undervalued - this latest move is an affirmation of his view. For long term investor - buying a blue chip company with resilient cash-flow at price close to its 9 years can't really go wrong - in my opinion.

If you have available cash, I suggest you add this to your portfolio.

However, rather than going straight into its shares - consider YTLP-WB, its conversion price is RM1.21 and a long tenure (2018).

YTLP-WB is trading at 0.515, YTLP is trading at 1.77