How long can YTLPOWR investors ignore the falling pound?

Morgan Stanley Issues HUGE Short Call On The Pound As Hung Parliament Fears Drag On

Read more: http://www.businessinsider.com/morgan-stan...5#ixzz0nctDtaef

YTL runs a power station in Zimbabwe and now Robert Mugabe is around 86 years old. Don't know what will happen when this dictator dies. Will YTL's power station suffers the same fate of some Malaysian companies which lost their pants in the latest land grab in this lawless country?

This is news to me. I am not aware YTLPOWER has any holdings in Zimbabwe. Are we talking about the same YTL here?

Ahh I found the news item. here..

But this deal was in the 90s leh during Tun Mahathir's era and the deal did not materialise. So don't worry about Mugabe dying because no effect on YTLPOWER.

This post has been edited by skiddtrader: May 11 2010, 11:45 PM

I do worry on the falling pound. I did mention it since last year. But since YTLPOWER have diversified into different regions so the impact is still not so catastrophic yet but i tell you it really worries me of course.

But so far i still cannot find any investment to TOTALLY replace YTLPOWER yet....

The only thing i can do so far is stop invest into YTLPOWER since last year end.

I don know how about Skid, do you selll off all your YTLPOWER? i DON THINK so

This post has been edited by darkknight81: May 12 2010, 09:24 AM

Haha no I have not plan to sell it. So far it's still profitable and working as intended.

Yup thats what i am thinking also. Unless they don pay out dividend consecutively for at least 2 quarters then sorry lol.

Furthermore, the very main reason i put most of my bet into YTLPOWER is i can trust FRANCIS YEOH.... not becos of the company but becos of FRANCIS YEOH....

This post has been edited by darkknight81: May 12 2010, 09:44 AM

http://uk.news.yahoo.com/18/20100512/tpl-c...br-5b839a9.html


[/QUOTE]

- a statement that cutting the country's record deficit was "the most urgent issue" facing Britain.

- an emergency budget within 50 days.

- saying "Britain will not join or prepare to join the euro in this parliament."

- the cancellation of plans to build a third runway at London's Heathrow airport.

- stressing that "essential" reform to the banking system is needed to avoid a repeat of the 2008 financial crisis which it blamed on the last government.

Earlier, new Foreign Secretary William Hague insisted the coalition agreement, forged in five days of talks after an inconclusive May 6 election produced the first hung parliament since 1974, would stand the test of time.

"I don't think it will be a weak coalition. It will be a strong government," said Hague, adding that the conflict in Afghanistan -- where Britain has around 10,000 troops -- would be his "most urgent priority."

New Finance Minister George Osborne added: "Now's the time to roll up the sleeves, and get Britain working."

London's stock market and the pound recovered after a jittery few days ended with Tuesday's deal, although the currency later gave up early gains.

Bank of England governor Mervyn King welcomed Cameron's plan to make six billion pounds (seven billion euros, nine billion dollars) of public sector savings in 2010, deeply opposed by his Labour predecessor Gordon Brown.

Britain's deficit stands at 163.4 billion pounds, or 11.6 percent of gross domestic product -- the highest level since World War II. It emerged from recession at the end of last year.

Cameron was asked to form a government by Queen Elizabeth II late Tuesday after Brown resigned.

The race to be the Labour party's next leader got under way Wednesday, with ex-foreign secretary David Miliband the first to throw his hat into the ring.

US President Barack Obama called Cameron within minutes of his appointment, inviting him to visit in July, Downing Street said -- and on Tuesday the US leader called the British premier a "smart, dedicated (and) effective" leader.

Hague will also travel to Washington on Friday for talks with US Secretary of State Hillary Clinton, both sides said.

Chinese Premier Wen Jiabao and Indian Prime Minister Manmohan Singh talked to Cameron, with Singh inviting him for an "early" visit to Delhi.

French President Nicolas Sarkozy is to hold talks with Cameron in a visit on June 18.

Critics say the deal between the centre-right Conservatives and centrist Lib Dems is an unlikely alliance, since they have strongly differing views on a number of issues.

But between them, they have enough to secure a majority in the House of Commons which Labour and the Lib Dems, seen as more natural bedfellows, did not, although they held talks.

Clegg leads a Liberal party into British government for the first time since

[QUOTE]

This post has been edited by darkknight81: May 13 2010, 01:31 PM

So where is the pound going after the new leadership?


Live rates at 2010.05.13 11:59:09 UTC
1.00 GBP = 4.70760 MYR
United Kingdom Pounds Malaysia Ringgits
1 GBP = 4.70760 MYR 1 MYR = 0.212423 GBP


I feel like trying out currency trading, pound beginning to look really cheap.

Especially if it goes even lower.

This post has been edited by calmwater: May 13 2010, 08:03 PM

Yup you are right.

UK has very big and liquid bond market unlike other EUROPEANS COUNTRIES therefore, i believe current GBP depreciation was for short term.

LATEST COMMENTS BY FRANCIS YEOH:

On whether the weaker pound sterling would affect YTL Power International Bhd's receivables from Wessex Water Ltd, Yeoh said being a diversified international player, there were bound to be earnings translation losses and gains from overseas investments.

YTL Power acquired Wessex Water, a water and sewerage operator in the United Kingdom, in 2002 for £1.24bil.

He said investors should look at the company's long-term operational efficiency and profitability instead of its quarterly performance.

“All our overseas assets operate on their own and having borrowings in their local currencies provide a natural hedge against foreign exchange fluctuations.

“We are very happy with our investment in Wessex and aim to make it the top water and sewerage company in the world,” Yeoh said.

An analyst with a local brokerage said most investors bought into YTL Power for its strong dividend yield.



This post has been edited by calmwater: May 14 2010, 08:23 PM

Yup absolutely right YTLPOWER definitely is for my long term holding. If you look at long term current pound depreciation should not be a major issue for investors to sell off their shares.

That makes what left at Wessex Water worth much less.
I remember once when Francis comment Wessex Water worth much more than it did,
now it worth much less, and I wonder will the FOREX impact its profit,
after all, profit do reflect one's company asset fluctuation.

Yeah, Wessex was worth much more when POUND/RINGGIT was 1:7 a few years ago.

I was looking at the possibility of YTLPOWR listing WESSEX on LSE to unlock it's value and use the funds raised to expand it's operations further. But now at an exchange rate of 1:4.7 the valuation of WESSEX has declined by about 30% and so I believe it's profits as well.

YTLPOWR will have to depend very much on SERAYA and it's new CO-GEN plant to cancel out the negative effect of the POUND and that is left to be seen in the coming months.

Still waiting for an opportune time to re -enter YTLPOWR. Could take a few more months for this whole thing to play out. Have to waaaaaaaaaaaaaaaaaait patiently.

DIVIDENDS is the key. If it is maintained the price should hold, if not there could be a slide.

This post has been edited by calmwater: May 16 2010, 08:16 PM

Certainly I don't think much when it come to dividend, there is better dividend stock.
It's the share price but with such huge amount of warrant and debt, I don't think it will be go up anytime.
So, I sell it because there is not much strong point anymore, swap it for CSCSTEL.

What's YTL power's dividend yield based on it last price of RM 2.21?

Based on current price of RM2.21 and the trend of the interim dividends. DY is expected to be around 6.7%.

YTLPOWER RESULTS finally out. Declared 3.75 cents dividend.

1. I am surprise that Wessex Water profit increased maybe due to their recent price hike in water supply.

2. Contribution from POWER SERAYA ALMOST at par with WESSEX WATER !!!
Profit before tax of POWER SERAYA surge more than 100% comparing with previous quarter!!!

3. 758 MW combined cycle plant will be commissioned after JUNE 2010.
Contribution from POWER SERAYA might overtook WESSEX WATER thereafter.

In conclusion, we start to see value from POWER SERAYA already and depreciation of POUND STERLING does not have that great impact
for WESSEX EARNINGS. One more things check out the borrowings in pound which is in my report.

My investment in YTLPOWER for almost 2 years started to bear fruits liaw



In my attachment, i have compile the contribution from each segment in term of %.

Correct me Skidd taikor if you see any mistakes

About RM 800 MILLION (USD 250 MILLION x 3.2) are being spent to settle the due RM 250 MILLION BOND in USD.

This post has been edited by darkknight81: May 29 2010, 09:21 AM


Attached File(s)
 ytlpower.pdf ( 45.52k ) Number of downloads: 48

FROM CIMB


Attached File(s)
 YTLP.pdf ( 214.7k ) Number of downloads: 34

hi darkknight, at the price rm2.20 per share what is the estimated dividend yield at current dividend payment? is it 6%

6.8%