Posted by smartly > 2013-10-09 16:53 | Report Abuse

4m waiting there at 1.83.

Posted by fzank > 2013-10-09 16:54 | Report Abuse

thanks to sifu uncle sam ... sold into strength .....

Posted by smartly > 2013-10-09 16:55 | Report Abuse

sapu 0.56........

Posted by Jerry > 2013-10-09 17:02 | Report Abuse

Trustme, you got to trust me. This share can't use TA to trade. Ok, lets use today as example, a break of the resistant(1.85) with huge volumn would suggest the price to move further, so it's suggesting us to BUY. And you bought it whether 1.86, 1.87 or anything above 1.85. At the end, it closed at 1.83. How much you have lost? Alright, as an investor you look for long term, ok how much extra shares you just missed just because of you use TA? Thats why i said, never use TA in this stock, other stock i can't assure you but this one i can confirm. As mentioned early, do not hope this stock to fly like crazy, a break of resistant will not suggest anything. You only need to look at daily annoucement of how much shares bought back with what price. A stop of shares buy back will need some attention. Thats why i said, last 5 minutes is interesting in this stock. :D

Posted by smartly > 2013-10-09 17:04 | Report Abuse

wait for announcement....

Posted by pineapple > 2013-10-09 17:13 | Report Abuse

Agree with jerry. Same trend like a year ago. Is it good time to look at ytl now?

Posted by Jerry > 2013-10-09 17:16 | Report Abuse

yes, ytl looking good to collect. Hard to have chance like this, i did collect some and keep until privatization news. 2 yrs? 3 yrs? dont know, just keep. :D

Posted by smartly > 2013-10-09 17:38 | Report Abuse

7m buy back range 1.82 to 1.84 !!

Posted by smartly > 2013-10-09 17:40 | Report Abuse

1.85 resistant price got 4.8m done there. who sapu ??

Posted by smartscore > 2013-10-09 18:02 | Report Abuse

EPF i guess...

Posted by kolim13 > 2013-10-09 18:48 | Report Abuse

If EPF sapu will some thing happen ?

Posted by Jerry > 2013-10-09 19:07 | Report Abuse

If no mistake those were trade by sharks, their main target is WB. Look at WB's volumn, do you notice it was too much compared to previous trades? Sharks can't accumulate mum, but they can accumulate WB. Pushing mum up to get profit from warrant.

Posted by hng33 > 2013-10-09 19:09 | Report Abuse

Buyback just 40% of today total volume, increase stake by another 0.1%, cumulatively at 3.34% in treasury stock now.

Posted by kolim13 > 2013-10-10 00:11 | Report Abuse

if play by sharks, you mean wb still can buy for short team.
But mum today off market done $1.88 year high.

Posted by Jerry > 2013-10-10 02:10 | Report Abuse

as long as got share buy back, ytlp is fine to hold. Price will up slowly.

Posted by my101home > 2013-10-10 09:02 | Report Abuse

Anyone knows how to convert the warrant into the mother share ?

Any other charges other than the exercise price? Is that troublesome?

Posted by gskow > 2013-10-10 09:10 | Report Abuse

RM25 charges + exercise price + 10 working days.
if nominee account, just ask yr dealer to do it.
if non-nominee account, no experience...

Posted by my101home > 2013-10-10 09:14 | Report Abuse

many thanks gskow..

Posted by AhJee > 2013-10-10 09:15 | Report Abuse

wow...
I afraid of privatized.. I keep so long of this counter, above 2.3
so still can wait yah?

Posted by JTFX > 2013-10-10 09:16 | Report Abuse

jerry, thats it..slow n steady,,we'll get to 2.00 n 0.80 soon..with no panic correction like GPac ..LoL..

Posted by gskow > 2013-10-10 09:17 | Report Abuse

after i converted, i sold already.
wb market price 0.56, after converted, sold consider like 0.62
extra earn 6 sen ;)

Posted by Jerry > 2013-10-10 09:24 | Report Abuse

Wow drn buy back convery and sell againla

Posted by kcchongnz > 2013-10-10 09:34 | Report Abuse

Arbitrage of YTL Power Wb, an opportunity or a trap?

YTL POWER Warrant A is trading at 56 sen while the underlying share is at RM1.83 at the close on 9/10/13. It has an exercise price of RM1.21 and the expiry date is on 11th June 2018, or in 4.67 years time. The warrant is hence in-the-money with an intrinsic value of 62cents (1.83-1.21).

That is right. Even though there is still long time to expiry, Wb’s intrinsic value at 62.0 sen is higher than its share price of 56.0 sen. Buyers of Wa not only getting a free time value, they even got a discount. Here is a risk free arbitrage opportunity. Transaction costs are ignored.

Short sell 100,000 shares of YTL Power at RM1.83, proceeds of RM183,000
Buy 100,000 shares of Wb at 56 sen for RM56,000
Convert to YTL POWER at exercise price of RM1.21 for RM121,000
Return the 100,000 converted share to lender

Profit=183,000-56,000-121,000=RM6,000

If short sell is not allowed for YTL POWER, borrow money to buy Wb and convert to YTL POWER share. Then sell the converted share in the market. Pay interest. The payoff is the same. In this case there is an execution risk, risk that YTL POWER may trading below RM1.83 when the converted shares come back in a couple of weeks time.

Posted by hng33 > 2013-10-10 09:38 | Report Abuse

kcchongnz

Is better to buy even more WB instead of opt for conversion, as in turn of percentage gain WB have much more potential than conversion to enjoy risk free arbitrage opportunity

Posted by kcchongnz > 2013-10-10 09:42 | Report Abuse

hng, of course.

A rational investors won't just waste the 4.67 years of time value by converting to the underlying share.

Posted by smartly > 2013-10-10 09:42 | Report Abuse

strange today, no road block ahead. ??

Posted by JTFX > 2013-10-10 09:45 | Report Abuse

TQ KC...for the support...

Posted by smartly > 2013-10-10 09:46 | Report Abuse

if buyback is triggered now, should be sailing all the way up.
where are the big sellers ?

Posted by hng33 > 2013-10-10 09:48 | Report Abuse

kcchongnz

We must admit stock market sometime is inefficient in turn of pricing stock. however, given enough time, soon or later it will narrowing arbitrage gap. Furthermore, comparing to YTLP mum share, even though it up 23sen from early last month 1.60 to current 1.83, comparing to WB just up 13sen from 43 to 56sen, but in turn of percentage gain WB still outperform mum by double

Posted by smartly > 2013-10-10 09:48 | Report Abuse

can instantly hit 1.89 with just 4 5000units buy up.

Posted by JTFX > 2013-10-10 09:49 | Report Abuse

smartly,,they r joining the Buy Q now ..LoL..

Posted by hng33 > 2013-10-10 09:51 | Report Abuse

smartly

YTLP seller must aware, selling their stake in YTLP is just transferring to YTLP sbb, one direction only, accumulation without distribution back to open market.

Posted by smartly > 2013-10-10 09:52 | Report Abuse

at around 12m shares buy back today will hit 250m shares in treasury.
2nd cancellation on the way ?

Posted by hng33 > 2013-10-10 09:54 | Report Abuse

'can instantly hit 1.89 with just 4 5000units buy up'

YTLP sbb won't that, only shark market maker will do as YTLP sbb strategy is to accumulate as much volume but at lowest cost possible.

Posted by smartly > 2013-10-10 09:54 | Report Abuse

JTFX, LOL !! that in fact a good news.

Posted by smartly > 2013-10-10 09:56 | Report Abuse

hng33, do you think they reach the 10% sbb ? or at what level now ?

Posted by hng33 > 2013-10-10 09:56 | Report Abuse

Still prefer YTLP sbb strategy to accumulate share steady and consistently, build up a solid support without worrying sudden jump/down volatility

Posted by kcchongnz > 2013-10-10 09:57 | Report Abuse

Posted by hng33 > Oct 10, 2013 09:48 AM | Report Abuse

We must admit stock market sometime is inefficient in turn of pricing stock. however, given enough time, soon or later it will narrowing arbitrage gap. Furthermore, comparing to YTLP mum share, even though it up 23sen from early last month 1.60 to current 1.83, comparing to WB just up 13sen from 43 to 56sen, but in turn of percentage gain WB still outperform mum by double


I hope the market is inefficient rather than a trap set by manipulators.

The delta (rate of change of warrant wrt to underlying)is about 0.75. Hence the warrant will not rise as much as the underlying share, but theoretically at 0.75 times. However, because of the gearing of 3.2 times, the effective leverage is 3.2*.75 or about 2.5 times. That is why Wb's gain is more than the underlying, theoretically of 2.5 times.

Posted by smartly > 2013-10-10 09:59 | Report Abuse

sharks market maker ?
yesterday's 1.85 resistant could be done by them but who r they ?

Posted by hng33 > 2013-10-10 10:02 | Report Abuse

opportunists, to capitalize on YTLP sbb, buy push up YTLP mum a bit, they stand to gain more on WB in turn of percentage gain and will likely repeat again.....

Posted by smartly > 2013-10-10 10:03 | Report Abuse

sell q at 1.85 build up.
sbb will take all before 1st session end. :)

Posted by kcchongnz > 2013-10-10 10:03 | Report Abuse

Share buyback by management will benefit warrant holder more for two reasons.
1) The demand from buyback will boost share price.
(2) Buy back and cancel reduces the number of shares outstanding, and hence boost earnings per share. Higher EPS in turn boosts share price because of lowering PE ratio. The increase in the share price of underlying in turn boosts the warrant price.

So buy back shares by YTL is great for Wb.

Posted by hng33 > 2013-10-10 10:04 | Report Abuse

With more positive sentiment, YTLP sbb could really engulf RM 1.85 today.

Posted by Jerry > 2013-10-10 10:06 | Report Abuse

Shark wont use same strategy for twice consecutively. So far it's normal from my observation. 1.84 is buy back point.

Posted by JTFX > 2013-10-10 10:08 | Report Abuse

time to power up...

Posted by smartly > 2013-10-10 10:17 | Report Abuse

they got themselve trapped at 1.85 but capitalised on WB by selling them off with higher percentage gain. overall trades-off should gain higher on WB.
they could possibly sell back ytlp at 1.86 and above by riding on the sbb.

Posted by smartly > 2013-10-10 10:18 | Report Abuse

both also win-win to them.

Posted by Jerry > 2013-10-10 10:21 | Report Abuse

Perhaps they make intraday trade yesterday? Who knows? We dont know what price they accumulate WB . I guess profit around 20-30%

Posted by hng33 > 2013-10-10 10:24 | Report Abuse

That why advised to be longer term investor rather than scalp trade. Investment grade stock/warrant need time to reflect its true value.

Posted by fzank > 2013-10-10 10:44 | Report Abuse

bought this morning 0.56 then sold 0.57 .... thanks to all value players