On the 23rd September I posted a recommendation to add YTLP-WB to your portfolio.
It traded at 51.5 cent that day.
Today I've just disposed off some of my YTLP-WB at 80.5 cent.
In the 2 month period since my recommendation, YTLP-WB have risen 29 cents or 57%.
I will still retain the vast majority of my WB at this stage. I believe the valuation for YTLP is undemanding given its resilient cashflow and the strong buyback being executed by the management.
If you are holding onto some WB, I suggest you take some profit at this stage - the upcoming earning announcement might take some air out of its recent momentum.
Care to comment now that the Q1/14 results are out? Many thanks
ReplyDeleteResult is in line, cashflow still awesome and buyback even better.
DeleteThere's a few line of impairment totalling 70M that interest me. I believe these will be once off, perhaps relating to the IPP contract terminating, but there's no detail to it.
Valuation is rather undemanding still, I like its WB but with the recent rise, your portfolio may be due for some rebalancing.
TQVM Market Watcher. I sold WB and switched to Mother. Last Friday's price movement was peculiar towards the closing (after 4pm) yet WB held on so well.
DeleteIf share buyback is the key catalyst given the undemanding Q1 result, how does one
recouncil the share price pan-out, mother vs wb?
Market Watch:
Deletehttp://www.btimes.com.my/Current_News/BTIMES/articles/20131124234106/Article/index_html
This probably explains the wild Friday closing price swing?
Thanks for the article.
ReplyDeleteI still much prefer WB over the mother share. Currently trading @ 0.82, with 1.21 conversion at 1:1 = 2.02 per mother share over 1.94, a premium of 0.08 cent or 4%.
The warrant expiry date is in 2018. I think the share is worth more in 2018 than today, hence I like the leverage being offered by the WB at a relatively "cheap" premium.
Buyback is much better for the WB than dividend.
Short term movement in the price is not that important, I am not a trader - actually held on and add to the position in the last 2 years before the recent spike.
When you look at the contribution offered by the IPP segment, it is relatively immaterial relative to those offered by its other business segment. I think what happen to its mobile segment will be more important than whether it can get another IPP contract, although IPP award will boost the sentiment in the share.
A food for thought, YTLP have market cap of 13B and maxis and Digi have market cap of 53B and 38B respectively.