Recently I have read two research paper from HwangDBC and ECMLibra post PM's NEM announcement. The two reports gave the power sector overweight ratings with ECMLib giving YTLPWR a buy call with 12 mth TP of RM 2.50.

I've checked the current price is at 60D MA and current DY is at 5.90%.

To me this is a profitable buy. Bought 3500 units yesterday at RM 2.20

Xuzen

This post has been edited by xuzen: Apr 3 2010, 01:04 PM

This is my comment:

YTLPwr is a component of KLSE-30. KLSE-30 annualised rtn is 1.97% p.a. The beta of TYLPwr relative to KLSE-30 is 0.58. The KLIBOR rate is standing at 3.05%.

Using the CAPM formula I obtained that the risk adjusted reward for YTLPwr at 2.4%. Currently, the div yield alone is 6++ %. If you are looking for a dividend play, then buy.

Personally I would put my money into REITs at the moment b'coz of higher risk adjusted rtn.

Xuzen

Darkknight is giving top down (macro) view while I am giving opinion based on mathematical's point of view.

I use mathematical model because it allows me to prioritize my limited resources to obtain the optimum risk adjusted reward.

Xuzen

I bought 3,500 units YTL Pwr at RM 2.1X in Apr'2011. Just sold it yesterday when she hits RM 2.39 making a 10.XX% cap gain (inc divvies). 10.XX % gain in 5mths period, not to shabby I'll say ol'chap.

The above post is one of the serendipitous thing that prompt me to sell this laggard counter.

Xuzen