Thursday, July 18, 2013

YTLPowr- broke above its downtrend line

YTLPowr has broken above its downtrend line at RM1.55 in late June. Today, it broke above its horizontal line at RM1.68-1.70. With these breakouts, YTLPowr's recovery is poised to begin. The alternative to the share is YTLPowr-WB (exercise price: RM1.21; expiry date: June 11, 2018). The warrant has also broken above its downtrend line at RM0.42 as well as its horizontal line at RM0.48.

Based on technical consideration, YTLPowr & YTLPowr-WB could be good trading BUY.

Chart 1: YTLPowr's weekly chart as at July 17, 2013 (Source: Quickcharts)

Chart 2: YTLPowr-WB's weekly chart as at July 17, 2013 (Source: Quickcharts)

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, YTLPowr & YTLPowr-WB.


hng said...

Hi Alex

What is YTL Power and WB support and resistance level? I have extract some of the information in regard to 1Bestarinet and its latest supply chromebook to school.

As of end-December 2012, 70% of the nations schools have been connected. And the laptops would be Chromebooks running Google Apps, the Mountain View, California tech giant’s cloud-based solution suite. Google and its Chromebook is selected base on its low-cost cloud based services versus the PC-era architecture of the others; instant-on ability; and all-day battery life.

Under the first phase to supply chromebook laptops, it costing up to RM 513.3m encompasses fixed term licensing fees of RM 250.5m and management and maintenance cost of RM 262.8m. Each school will have 41 Chromebooks made by Samsung with 3,000 schools to get them initially.

[Remark: the Samsung Chromebook is listed at RM1,299; or RM988 under the YES 4G Chromebook Plan, for RM69 per month with a monthly 3.5GB data quota].

But, with the Barisan Nasional having made an election promise that it will provide every student, plus teachers and parents, with a laptop, The numbers are daunting – 10,000 schools, over 5.3 million students, 500,000 teachers and 4.5 million parents, on one unified platform the irresistible lure of supplying 10 million laptops, now that the Barisan has been returned to power.

With each student in the country given a unique YES ID, the Chromebook becomes that student’s personal computer and with it, the lessons and e-books of that student.

YTL Communications would use the tower to roll out commercial YES 4G services to the residents of the surrounding community. As each tower can cover up to 4km radius, This infrastructure will also enable teaching to go beyond classrooms, not just anywhere in the school compound but also the surrounding areas up to a 4km radius. With this broad coverage, students, parents and teachers can use this network to access the Frog VLE from home and continue the learning experience.

Alex Lu said...

Hi Hng,

Thank you for the info.

The immediate support levels for YTLPowr are RM1.70 & RM1.58-1.60 while the immediate resistance levels are RM1.85 & RM1.95.

Good luck.

Ivan said...

Dear Alex,

Good day.
YTL Power International - Mkt Cap RM 11.2b (30/6/13); cash holding RM 10.4b.

Excluding the cash on hand, the company's other asset only worth RM 800m. Make sense?

Alex Lu said...

Hi Ivan

I find your computation of the value of YTLPower to be interesting. If you add up all the cash or near-cash and minus out the borrowing, you have a cash reserves of RM10.6 billion. If all YTLPower-WB are converted to shares, the cash reserves would balloon to RM12.0 billion. Outstanding shares would inch up to 8.503 billion. Adjusted for Treasury stock of 150 million, the outstanding shares would be 8.353 billion. Each of this share is entitled to cash of RM1.44. We would be paying 20-25 sen per share for the other businesses of the group: power generation; power transmission; water & sewerage services; and, communication.

On that basis, the stock is a safe buy with good upside potential.