First of all, you need to check the recent buying volume on YTL on the preceding days of msci and after.
Funds love to buy stocks with a theme when a disguising scenario presents itself, ie. msci
Do you think funds could have bought without moving the price on a regular day? And more importantly why do you think they willingly absorb it if it's a lousy share with no good story to run on for the next year riding on stocks with economic recovery theme.
So why do funds buy YTL in the first place? Two words, HSR and cement.
Do you know that YTL has 70% monopoly on cement after buying out their competition? And cement prices have been running up since 2019. As you well know construction work can take years, there will be a long runaway for YTL to profit from selling cement alone - 1 bil profit just from cement, understand that.
Last it had 1 bil profit, it was trading north of 1.5. And that's just from cement, how about the construction contracts?
You should also know that as they were previously handling the HSR projects, they have on their hands very useful logistics data to cut HUGE costs on the HSR project. Do you think the gov would want to waste unnecessarily on this project? Certainly not.
Moving on, with the new tendering, there has been realignment of the tracks, and as you well know YTL is part owner of ERL which connects to KLIA, and HSR will be integrated with KLIA. So can you imagine YTL not benefiting?
The economy moving on will be very bullish on construction companies due to dire need to stimulate and jump-start the economy. The best proxy to construction theme is YTL.
tdlr: Just buy YTL for a easy two bagger in one year.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
zhouxingxing
333 posts
Posted by zhouxingxing > 2020-11-26 16:43 | Report Abuse
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