QUOTE(kochin @ Feb 11 2010, 05:25 PM)
still a lil confused but thanks for explaining.
i got MAS share. yesterday my broker called me asking whether i want to accept the rights which i told them yes. this morning, i notice i oledi got the same amount of shares in MAS-OR (of which I was informed that I need to only pay the RM1.60).
does that mean by 22/2/2010, irrespective of what happen, i will automatically have the OR no. of shares converted to the mothershare, thus doubling my quantity for the mother share? does that also mean i need not purchase any OR now since it's already in my account and thus saving me a further 0.14 or whatever price it drop to?
if that is the cse, then it's mighty stupid of me to reject them to have more rights application since she quoted that if under subscript i have the right to purchase more at rm1.60 (i'm literally expecting that i need not purchase anymore OR in the market)
but having said so, isn't it still attractive to buy the OR at such low price? or is it come 22/02/2010, after conversion, the mothershare is expected to drop drastically again?
thanks again and sorry for repeating my question. still new and still learning albeit a very expensive lesson!
Wrong liao, you are confused already. No offence.i got MAS share. yesterday my broker called me asking whether i want to accept the rights which i told them yes. this morning, i notice i oledi got the same amount of shares in MAS-OR (of which I was informed that I need to only pay the RM1.60).
does that mean by 22/2/2010, irrespective of what happen, i will automatically have the OR no. of shares converted to the mothershare, thus doubling my quantity for the mother share? does that also mean i need not purchase any OR now since it's already in my account and thus saving me a further 0.14 or whatever price it drop to?
if that is the cse, then it's mighty stupid of me to reject them to have more rights application since she quoted that if under subscript i have the right to purchase more at rm1.60 (i'm literally expecting that i need not purchase anymore OR in the market)
but having said so, isn't it still attractive to buy the OR at such low price? or is it come 22/02/2010, after conversion, the mothershare is expected to drop drastically again?
thanks again and sorry for repeating my question. still new and still learning albeit a very expensive lesson!
OR is given free to you as existing MAS shareholder.
But OR's life-time is as good before 22/2, if you are not subscribing the right issue at RM1.60, OR will cease and expired, worth zero.
You need to buy a banker cheque of Rm1.60 aka you need to fork out Rm1.60 to own another MAS shares and send the cheque together with the OR (it is actually a form only).
You have 2 choice right now
1. Dispose the OR in the market, get Rm0.14 (today price)
2. Buy the right aka fork out Rm1.60 to own another MAS
3. Being mentioned before, so don't want to confuse further, so just consider 1&2 first.
Added on February 11, 2010, 5:46 pm
QUOTE(mopster @ Feb 11 2010, 05:12 PM)
thank you~~ u r da sifu
~the exercise of rights doesnt happen instantly right ? by the time Rights trading is over and payment settled MAS share could be 1.50 or lower.. still a risky business imo..
~also, since the ratio is 1:1 .. if someone bought 50,000 OR, but can only afford to buy 10,000 MAS... means the remaining 40,000 OR becomes toilet paper after OR trading period is over
-----
~last is to just trade the OR before expiry.. buy 0.130 and sell 0.140 etc...
plz corrent me if i'm wrong..
Yes, become toilet paper, so please don't overbuy the OR, as time is against you, it has barely a week or so lifetime.~the exercise of rights doesnt happen instantly right ? by the time Rights trading is over and payment settled MAS share could be 1.50 or lower.. still a risky business imo..
~also, since the ratio is 1:1 .. if someone bought 50,000 OR, but can only afford to buy 10,000 MAS... means the remaining 40,000 OR becomes toilet paper after OR trading period is over
-----
~last is to just trade the OR before expiry.. buy 0.130 and sell 0.140 etc...
plz corrent me if i'm wrong..
Take about a few week before the right issue completed. So risk is always there. That's why some OR holders don't want to take up and dispose the OR.
That's why we often see near last day, OR normally being sold down at discount.
This post has been edited by cherroy: Feb 11 2010, 05:46 PM
Feb 11 2010, 05:39 PM
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