Based on the above, I would recommend readers to avoid YTL. For those holding the stock, you may want to do a trading SELL at this point of time.
Chart: YTL's daily chart as at April 26, 2011_9.20am (Source: Quickcharts)
Tuesday, April 26, 2011
YTL- having the cake & eating it too
YTL has gone past its entitlement date for 1-to-5 share split. Below, I have appended the unadjusted price chart for the stock up to 9.20am this morning. Except for the share split, there was no announcement of any positive news that could explain the jump in the share price. Nevertheless, the share price made a high of RM1.75, which is equivalent to RM8.75 (prior to the share split). Even at the current price of RM1.67 (as at 9.38am), the price jump is unsustainable. The exchange has posted the reference price of RM1.59 for market guidance. This reference price (or, the theoretical ex-entitlement price) was arrived at by dividing the closing price yesterday of RM7.95 by the factor of 5. Unless there is positive development yet to be announced, YTL share price is likely to retrace back to the reference price over the next few days. A drop below the reference price cannot be ruled out as YTL had a sharp rally ahead of the share split.
Based on the above, I would recommend readers to avoid YTL. For those holding the stock, you may want to do a trading SELL at this point of time.
Chart: YTL's daily chart as at April 26, 2011_9.20am (Source: Quickcharts)
Based on the above, I would recommend readers to avoid YTL. For those holding the stock, you may want to do a trading SELL at this point of time.
Chart: YTL's daily chart as at April 26, 2011_9.20am (Source: Quickcharts)
hi alex, i think its because YTL's subsidiaries in Singapore was reporting a huge profit a few days back. maybe you can check that out and factor that into the Future value cashflow!
ReplyDeleteanything up on Scomi and scomi engineering, Alex? thanks for your many previous inputs!
ReplyDeleteI hv juz bought tis share ... is it fine to keep for long term?
ReplyDeleteHi SunShine
ReplyDeleteI have always been asked the same question- is it okay to buy a stock, at high price, for long term? The simple answer is whether you want to make money, which is why we're in the market. You must be able to justify why you want to get into an expensive stock, be it long-term or short-term. For example, you may want to get into YTL because it may secure some big projects, which could boost its future earning or it has a bullish breakout (thus a trading BUY). Otherwise, try your very best to buy a stock which is attractively valued.
Hi Political Crow's Nest
ReplyDeleteOn YTL, I don't think the current high price has anything to do with the development in Singapore. If that is true, why did the stock drop sharply in January & February?
I did not hear anything regarding Scomi recently. My thought is that this group has been steadily restructuring itself- selling off some major assets or divisions here & there- and it may soon announce something exciting. So far, nothing come out. The stock is still in a downtrend line, with resistance at RM0.35-0.36 (based on log scale). Its immediate support is at the horizontal line (& recent low) of RM0.285-0.29. Except for a brief rally in 2007, Scomi has been sliding since its listing in 2003. Based on this long record of under-performance, it would be advisable to buy on an upside breakout at RM0.35-0.36 rather than buy cheap & hold for forever.
Hi Alex,
ReplyDeleteThanks for your advise. I bought tis share as ytl has just launched 4G project which I think the no of user will be increase in the near future. I'm to new in the market and still in the learning stage. Anyways, thanks for your great effort in providing us info. Cheers ;)