Maybulk results poor, YTLPOWR sinks.

YTL-POWER

Selling pressure prevail for YTLPOWR shares after the RM2.2 billion warrants went ex-date. First the expected drop after the ex-date for the warrant to about RM2.33 from RM2.63, then a slight tumble to RM2.22 the following days. When the rights were free to trade, YTLPOWR dropped to RM2.16 and fell further to RM2.09.

YTLPOWR-WR which is the rights to the warrant are sold to the market starting from a price of RM0.87 to the current RM0.66 range. I'm not even sure anymore whether the mother share is following the rights or the rights following the mother share because of the big drop. The sell-offs are in huge numbers and buy orders are quickly filled. I believe a lot of big shareholders are selling of their rights to the market because the sum of each trade is large and you don't get that much rights if you don't already own a big sum of mother share. As for me, I'm sticking to my plan of accumulating the shares and subscribing to the warrants.

Update: YTLPOWER released their latest quarterly report and profits are up by about RM40 mil compared to last quarter. Also announced a dividend of 7.5% tax exempt (TE) of the par value which comes to about RM0.0375 per share.

MAYBULK

As for Maybulk, they released their 1st quarter un-audited results and it shows their nett profit fell by 37% compared to their previous quarter. I expected their profits to drop due to the lower BDI during the 1st quarter but 37% is quite an amount. Plus their earnings from the sale of 2 ships are not reflected yet. Their share took a slight beating after appreciating to the BDI index.

But next quarter should be good for them, as the revenues for sales of their ships will be reflected and the BDI turn upwards in the 2nd quarter. If the BDI holds, their next quarterly results will be sterling for sure when adding the revenue of RM147 mil from the sales of their ships.

If their last year dividend payments were any indication, they might decide to pay dividends for the 2nd quarter results, and if I'm not mistaken they've also paid a special dividend for disposal of ships before. I'm just guessing, who knows, maybe they will keep the money and buy some other ships with it.