Regarding the MAS-OR. Currently i hold 80 lot MAS share bought before ex-date.
If i sold my MAS share at RM1.92, my OR still valid?
What i mean is, i decided not to exercise the OR. I sell my MAS share tomorrow, i get RM1.92 + RM0.135(latest MAS-OR price), or solely RM1.92 only? The last day of entitlement is 22nd FEB.
I am confused, and at total lost. Urgent advice needed.


This post has been edited by SeanST: Feb 12 2010, 01:06 AM

I tried to sell the OR today, but can;t sell...
You know the reason? I am using M2U online trading

I wonder... I bought MAS 80 lot @ RM2.6
Is that mean if i take up the OR, the averaged price i get is RM2.6+RM1.6 / 2 = RM2.1

Thats why i plan to sell it now, don't want to invest more money in MAS.
But the only thing i concern is, will i get RM1.92 + RM0.135, or RM1.92 only if i sell tomorrow.

IC. Then why don't we just sell the Mother and hold the OR. Convert the OR to mother share at RM1.6+0.135?
That's would be a good idea

This post has been edited by SeanST: Feb 12 2010, 01:43 AM

I think he's dreaming now...
Anyway i found this article by Alex Lu, a remisier.
He talked about selling mother share and buy again with OR.
But he didn't mention on after selling mother, do we still hold the OR.
That's my confusion comes. In case after selling the mother share, will still have OR, i think best to do is to Sell the mother now, and convert the OR with just RM1.6+RM0.135 = RM1.735 something like that... cheaper than current market price RM1.92 lor... instant profit

Thursday, February 11, 2010
MAS- arbitraging opportunity
MAS is in the midst of completing a 1-for-1 Rights Issue at RM1.60 each. The ex-date of the Rights Issue was Feb 8, but the share price began to weaken ever since the Rights Issue was first announced on Dec 22. In early January, I had posted that MAS has broken the psychological RM3.00 level as well as the horizontal support of RM2.90 (go here).

Today is the start of trading of MAS-OR, the Rights entitlement. An investor who buys 1000 MAS-OR would be entitled to subscribe for 1000 MAS shares at RM1.60 each. We have seen heavy selling of MAS-OR in the market, prompted by existing shareholders' decision not to apply for their allotted entitlement under the Rights Issue. This may present an attractive opportunity for arbitraging profit for the existing shareholders, who can sell their shares in MAS at the present price of RM1.92 and then acquire back the same share via MAS-OR (presently trading at RM0.14 each) & then subscribing for the Rights Issue share at an all-in cost of RM1.74. Those who want to gain entry into MAS, may choose the cheaper route of buying the MAS-OR & then subscribing for the Rights Issue share, instead of buying the share directly from the market.

Chartwise, we can see that MAS has broken below its recent uptrend line,S1-S1 at RM2.40 and is hanging stubbornly at the horizontal support at RM1.90-2.00.