SPDR Portfolio Short Term Treasury ETF T.SST.U

Primary Symbol: SPTS

The investment seeks to provide investment results that correspond generally to the price and yield performance of the Bloomberg Barclays 1-3 Year U. The fund invests at least 80%, of its total assets in the securities comprising the index and in securities that the Adviser determines have economic characteristics that are substantially identical to the economic characteristics of the securities that comprise the index. The index is designed to measure the performance of short term (1-3 years) public obligations of the U.S. Treasury.

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SPDR Portfolio Short Term Treasury ETF

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Post by dlegovichon Mar 15, 2009 8:02pm

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Post# 15845958

Counter proposal

This is my provocative counter proposal.

Why not tap into debt and immediately buyout Capstone at 1.5 C$ per share?

As I understand Capstone owns some 30M shares so it would take C$45M to buy them out (around US$35M).
We will then be able to repay that debt by the end of the year and we will also end up with 93M shares instead of the 123M we have today.
This will leave us in 2010 with some 0.48 C$ per share of cash flow and no debt (assumptions: production=3.5Moz, silver=US$14, 1.29 C$ = 1 US$).
With such a buyout, at C$1.5 we would be trading at only 3 times expected 2010 cashflow.

Never underestimate the powerfull effect of a buyback when shares are undervalued.

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