According to the quarterly report, they've already paid theirs. And no other payments required or expected throughout the year.


Don't forget the IPPs they are talking about also contains other IPP in the country, not only YTLPOWER.

Like what Darkknight have pointed out, most likely it's due to the dividend in the coming weeks.

Since warrants don't receive dividend, the market will discount the potential adjustment from the mother share after the warrant ex-date.

Temasek Cancels Power Seraya Sale

http://www.bloomberg.com/apps/news?pid=new...id=aOklB_Wqi5t4

Well I was hoping for a year end bonus, but it's ok I guess. As I didn't buy YTLPOWER for acquisition but for dividends, this news more or less don't affect me.

I noticed YTLPOWER share rising up steadily and holding, although no share buybacks. This is good.

I hold some WBs that's why I said I was hoping for some year end bonus.

WB to mother share ratio is 1:3.

Holding the warrant is just to ride the uptrend of potential share price increase of a potential acquisition.

Since the warrant increase is same with the mother share increase, the required capital is less to ride the same amount of gains compared to the mother share.

So if you use let's say RM1k to buy the mothershare, the gains will be lesser that if you use the RM1k to buy WB warrants.

Be aware that while it can go up, it can also come down by similiar margin and warrants are not entitled to dividends.

This post has been edited by skiddtrader: Nov 27 2008, 05:27 PM

Dividend expected by end of next month will total up to about 8.25 sens without tax.

So that would probably be discounted from the warrant price.

haha hmm although that doesn't make sense but it sounds good ^^.

I realized yesterday market closed with both YTLPOWER and the WB volume almost the same. Still no buyback this December.

They already issued share dividends this year. It was done earlier compared to past 2 years before.

OMGWTF!!

I thought it was Cancelled!!??? !!

I just read the announcement!!!

It's a hole in one!!

It's actually SGD3.6 billion.

Financed by SGD1.15 billion from their own funds and another SGD2.25 billion loan from banks. Another SGD200 mill is for Temasek to pay back Power Seraya.

Power Seraya comes with no debts of it's own.

Last nett profit was SGD218 mil or close to RM500 mil or 50% of what YTLPOWER net profits are!


This is fantastic news!

Have to say Darkknights's strong suspicion is proven after all.

I thought for sure it was already cancelled, damn sneaky these buggers.

Yeah I'm gonna see how the opening is, if still low, I'll grab some WBs and mothershares. If it shoots up, then I'll see if its worth selling the WB and mothershare as well.

Normally the reaction if its very good will go up until exceed the normal peak, then drop back. So hopefully there is some where in between I can get more WBs when it drops.


We've discussed before that the potential rise in profits will almost raise their EPS by 50% of the present value. If we calculate it by current PER, at present value, a 50% rise in EPS would actually mean an identical rise price as well. But we'll see how tomorrow, who knows the market might react differently and sell on News and drag it down instead.

6.5% is assuming business is stagnant and doesn't move.

Looking back at Power Seraya past earnings, they have not yet faltered in their revenue growth.

But Singapore is now in recession, and so far the figures we've seen for Power Seraya is not during recession periods, so future profit might still be affected.

I'm itching to enter now, should I

This post has been edited by skiddtrader: Dec 3 2008, 08:45 AM

I actually expect the price to go up some more.

Haiz, I thought for sure will have some surprise year-end bonus. Looks like market not interested. But definitely good for the company overall.

Yup, still holding hoping to add some, but with this news maybe it won't drop anymore after the dividend payout.

I hold warrant mainly for the capital appreciation leverage, on top of the dividends I get from the mother share.

I like to look at their investment this way.

If you look at Genting and how they invest, billions of money spent and no profit for the next 4 years from their Casino in Singapore.

Where as this investment, 1st year will have profit, predicted to be small. Following year will be more and more.

This is the best thing about buying something already making money and profitable. It's a sure winner. You won't worry about whether your investment costs will go up or down, how soon before you see your investment start making money or whatever else which is being started-up.

In Malaysia with 2 power plants build less than 20 years ago by this company now allows them to buy foreign companies which makes more than what the 2 power plants are making now.

With the 30 year license to operate the plants which is currently being upgraded as we speak to gas turbines. And estimated nett earnings to be 50% of what they are earning now. Even a conservative 30% additional earnings will eventually build their coffers again. It's a money printing machine, and you have to look at it long term. When additional capex is required to maintain the plant, they don't need to borrow anymore, because they have the money.

Additional income = additional financing abilities.

With a bigger income, you can apply for bigger loans for more acquisitions. This is how a company grow fast instead of relying to 5 - 8% a year growth.

---

Added on December 4, 2008, 6:04 pmWhen Warren Buffet buy stuff, people tend to say he did a mistake at that time. After a while when he sells it, then the results will show he was right all along.

My point is, like you say it's best to judge it in 2010. No point trying to pass a judgement based on what little we know. Even research houses are giving guesstimations only based on 1 sentence of the CEO's statement.

Hopefully, in the near future the prospects of this company is clearer.

This post has been edited by skiddtrader: Dec 4 2008, 06:05 PM