drbhcom-ce

drbhcom  last five days closing price,

25-7-2011 = 1.95
26-7-2011 = 2.24
27-7-2011 = 2.25
28-7-2011 = 2.24
29-7-2011 = 2.24

5 days average = RM2.184,

exercise price of drbhcom-ce = 1.95 , conversion ratio = 2 for 1

(2.184 -1.95) / 2 = 0.117

drbhcom- ce shareholder only get back 11.7sen  per unit of drbhcom-ce.

above chart show start from May, drbhcom mostly trade within 2.20 - 2.30,

let us take it's mean  = (2.20 + 2.30) / 2 = 2.25

if 25-7-2011 no any trading error,

drbhcom- ce shareholder will get back

(2.25 - 1.95 ) / 2 = 0.15sen per unit of drbhcom-ce.

because of  the trading error, how much OSK save from it :

 issued drbhcom-ce = 90,000,000units

15sen - 11.7sen = 3.3sen

90,000,000 X 3.3sen = RM2,970,000,

on 25-7-2011, traded vol of drbhcom = 4,801,400,

assume tat all tis 4,801,400 share was  bought at price 2.28 (closing price on 24-7-2011  )

threw by trading error  at price 1.95 on 25-7-2011,

4,801,400 x  (2.28 - 1.95) = 4,801,400 X RM0.33 = 1,584,462

the loss of  trading error only cost RM1,584,462


but OSK can save about RM2,970,000.

Is it trading error?