Malaysian Airline System (MAS)'s Redeemable Cumulative Preference Shares (RCPS) have been sold down on heavy volume since February 2012. The RCPS are to be redeemed at RM1.00 in November 2012 which would give an annualized return of 18%. Uncertainty over whether the RCPS will be fully redeemed is to be addressed by a formal announcement by MAS towards the end of this month. With the ordinary shares trading way above NAV/share, and the RCPS trading at a discount to redemption value when the RCPS have priority over the ordinary shares in receiving payment, the RCPS look like a better bet than the ordinary shares. Trading Buy. (refer to report for details)

Source: ECM Newz Bits 06 April 2012, Full PDF Report