Long Run Explor Ltd Ord WFREF

LRE Debentures "Interest flat"

[deisman]

I just picked up an additional $4k of the LRE  debentures thinking I wouldn't have to pay accrued interest as per  anouncement as follows ........."The Toronto Stock Exchange (the "TSX") has advised the Company that the Debentures, when they commence trading on January 26, 2016, will trade on an interest flat basis until further notice. The TSX has advised that it will not report accrued interest regarding any trades made on an interest flat basis to its participating organizations...... BUT TD Waterhouse dingged me the inteest.  Not a whole lot of money but every penny counts.  Am I mistaken in my understanding of "interest flat"  or did TD Waterhouse screw up?

[BlueCollar51]

I have never bought or sold a Debenture trading on an “interest flat basis”.   My understanding is the same as yours. You should not have been charged the accrued interest but I can’t guarantee that I am understanding properly.   I would suggest that you call TD Waterhouse and see what they have to say. The accrued interest to date is substantial (probably over $40 per $1000 face value

[Bookends]

Hello Deisman, I've bought some debenture as well before and after the default date with Questrade... I do not understand why people still trade the stock when debenture offers more upside and a little more security as it is debt (it is convertible, so A LITTLE is to be understood)... That is beside the point. Anyways, before the default date, I paid accrued interest and after the

[QUANTUMJUMP]

jmo but paying outrageous fees with a broker is losing before you start  compare prices 

[uahub]

Just to bring this discussion back--hopefully can answer my question: are we going to be paid $48/1000 face value upon close? even if we didnt pay the accured interest after the default? That would bring the value of LRE.DB to 79.8, why people are still trading LRE instead of LRE.DB?  48.5/52 vs 71/79.8, LRE.DB is trading with a discount? am i missing sth? As a term of the forbearance

[Bookends]

My understanding of the situation, in regards to the accrued interest, is exactly the same as Deisman's in the post he did just prior to mine. If you buy now, you pay no interest to the seller whatsoever and keep all the interest that would be paid about closing. More or less a bit under 5 dollars on 100 dollars face value.  You said : "48.5/52 vs 71/79.8, LRE.DB is trading

[wilwal]

deisman and Bookends are correct.   Buy the debs today, pay no accrued interest and get all the interest going back to last August.   Anybody who sold after the default date get nothing even if they held the debs during the August-January period. The returns on the debs are much better than the stock upon closing. Stock    7.8% gain Debs    14% gain of which about

[wilwal]

I should clarify that the additional 3.2% interest from August to January is 3.2% of $100.  In reality, if you buy the debs at $70, then the actual interest earned from that period of time is 3.2/.70 = 4.6%.

[BlueCollar51]

I gave TD a call this morning. The person I spoke to was a bit unsure re the accrued Debenture interest.   He made some back office inquiries and got back to me.   He told me that my understanding that the accrued interest would not be paid or received until the Sinoenergy transaction closes if and when it does was correct.   However, he said that it may be initially charged

[wilwal]

Very few of those brokers have a solid understanding of debentures and how it works.  I have chatted with other investors who can't get an informed answer on debs from client services at online brokers.  Even personal service brokers aren't always great at it either......and many don't even understand something simple like covered calls. I would suggest that the person who

[deisman]

Thanks all for your feedback on lre.db interest charged.  I was on the phone with TD for quite some time this morning.  The 1st time the rep came back to me with an answer she told me interest was charged because it is a coupon type debenture.  I told her to chech again and this time to quote the TSX/LRE quote.  She went to another desk/office/supervisor and this time agreed