Fay.wt.a - 500 ta 1 leverageRock Note - Leveraged Opportunity
Da Rock’s recently bin trollin’………..fo’ good warrant opps…….
See dese links fo’ warrant info:
https://canadianwarrants.com/values/current.htm
Da Rock’s researched an incredible opportunity ta share wit yas!!!.............read ons…………..
Dis issa a low risk, maybe, Global bond fund………based upon Goldman Sach’s World bonds……….givin’ distributions…….buts we donna care bout dist……..just leverage anna value.
Da managers increasin’ size o’ fund wit warrants………anna dey’s trade…..new!
Impotent Note:
Da fund warrants aren’t like company warrants……….co wrts…….usually only 5-15% o’ share float…..
Dis issa new wrt offering…..2.6 M wrts………ta existing 5.2 units………..
Therefore any upside issa diluted by 33%!.........just be awares o’ dis!
First Asset Yield Opportunity Trust – FAY.wt.a
https://www.firstasset.com/documents/fundDoc_330.pdf
“Warrants to Subscribe for up to 2,625,739 Series A Units at a Subscription Price of $16.59
Record Date: January 27, 2010, subject to obtaining all necessary regulatory and
exchange approvals.
Commencement Date: Warrants may be exercised commencing on January 28, 2010.
Expiry Date and Time: Warrants not exercised by 5:00 p.m. (Toronto time) on June 25, 2010 will
be void and have no value.”
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Series A (FAY.UN) / Series B (FAY.U)
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Details (as at December 31, 2009)
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Date of Inception:
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August 19, 2003
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Opening NAV per Unit:
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$23.34
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Trading Symbol:
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FAY.UN (TSX)
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Units Outstanding:
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5,251,478
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Total Net Assets:
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$86,589,699
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NAV per Unit:
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$16.49
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Market Price:
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$16.24
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Investment Sub-Advisor:
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Goldman Sachs Asset Management
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Management Fee:
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1.10%(1)
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Average Credit Rating of Securities:
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B
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(1) Combined management fee for First Asset Yield Opportunity Trust and First Asset Global Bond Trust.
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Distributions
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Latest Distribution:
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January 29, 2010
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.1458
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Distribution Frequency:
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Monthly
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Cash Distributions Since Inception:
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$11.2266
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Current Yield*:
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10.77%
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Estimated Pre-tax Interest Equivalent Yield*:
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15.43%
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* based on Market Price as at December 31, 2009
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Portfolio Investments (as at December 31, 2009)
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Market
Value
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% of
Portfolio
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Market Value of the the Fund's Exposure to the Goldman Sachs Global High Yield Portfolio
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$72,519,160
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83.75%
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Cash & Cash Equivalents
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$14,070,539
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16.25%
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Total Portfolio Investments
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100.00%
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NAV Performance (as at December 31, 2009)
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Fund
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ML US High Yield Master II Hedged TR Index CDN**
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1 Month
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3.84%
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3.12%
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3 Month
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6.13%
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6.00%
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6 Month
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12.39%
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21.06%
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Year to date
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39.13%
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55.15%
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1 Year
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39.13%
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55.15%
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3 Year
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-4.04%
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3.80%
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5 Year
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-0.75%
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4.78%
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Compound Annual Return Since Inception*
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2.65%
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7.38%
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* based on opening NAV
** Source: Bloomberg
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https://www.firstasset.com/products/fund.php?id=1
”The Trust's return will be linked, by virtue of a forward agreement, to the performance of the Global Bond Portfolio, managed by Goldman Sachs Asset Management.”
Note dat dey is supporting da FAY unit’s price wit buy-backs:
https://www.firstasset.com/documents/fundDoc_330.pdf
“A notice of intention to make a normal course issuer bid filed by the Fund with the TSX was accepted by
the TSX on December 16, 2009. The normal course issuer bid, which commenced on December 19, 2009 and
expires on December 18, 2010, enables the Fund to purchase through the facilities of the TSX, from time to time, if
it is considered advisable, up to 525,147 Series A Units and up to 116,331 Series B Units of the Fund. Under the
bid, from December 19, 2009 to January 13, 2010, no Series A Units have been repurchased pursuant to the bid. As
at January 13, 2010, no Series B Units have been repurchased pursuant to the bid.”
Note dat FAY.un did da same ting inna July 09 wit warrants……..Fund gained ~ $2.00 inna 6 months…….
https://www.firstasset.com/documents/fundDoc_330.pdf
NET ASSET VALUE, TRADING PRICE AND VOLUME OF SERIES A UNITS
The following table sets forth the market price range and trading volume of the Series A Units on the TSX
and the NAV per Series A Unit for the 12 months preceding the date of this short form prospectus. The Series A Units trade under the symbol “FAY.UN”.
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Year
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Month
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NAV
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Price
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High
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Low
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High
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Low
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Volume
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2009
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January
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$14.11
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$13.15
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$13.95
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$12.77
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54,054
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February
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$14.29
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$13.62
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$14.04
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$13.13
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49,477
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March
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$13.80
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$13.05
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$13.30
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$12.27
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101,400
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April
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$14.70
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$13.59
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$14.48
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$12.98
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137,490
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May
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$15.53
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$14.68
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$15.28
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$14.19
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384,384
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June
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$15.87
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$15.42
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$15.32
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$13.94
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218,886
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July
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$16.00
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$15.15
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$14.53
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$13.60
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257,967
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August
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$15.44
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$15.21
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$14.83
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$14.32
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67,725
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September
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$16.10
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$15.21
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$16.02
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$14.50
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549,488
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October
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$16.27
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$15.89
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$16.01
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$15.05
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477,931
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November
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$16.35
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$16.00
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$15.99
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$15.31
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610,667
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December
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$16.62
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$15.99
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$16.24
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$15.60
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186,890
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2010
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January 1-13
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$16.78
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$16.32
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$16.45
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$16.03
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21,933
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Feb 10, 2010
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$16.21
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$16.10
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$15.91
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PRIOR SALES
During the 12 month period preceding the date of this prospectus, the Fund completed a warrant offering
on July 28, 2009 pursuant to which the Fund issued 2,592,503 Series A Units at a subscription price of $14.05 per Series A Unit and received gross proceeds of approximately $36.4 million.
So nows wit da new warrants FAY.wt.a(as of Jan 25, 2010) tradin’s …….good till June 25, 2010…
Maybe’s……….just maybe’s ………inna 4-6 months……dese FAY units tradin’s @ ~ about $16.00 wit warrants exercise @ $16.59…………….maybe by June…………………
Could…..gains $2…..makin’s warrants $2 inna da money!
Whats da price o’ warrants now???..................Feb 11, 2010 ….tradin’s @ .03 cents……..unbelievable leverage o’ ‘bout 500 ta one onna da units @ $16.00.
Only one caveat………da Rock sees……….:
1.existing # o’ units 5.3million…….2.5 million warrants issued……….so warrant may dilute upside by 33% makin’s a hypothectical $2 upside worth $1.40 diluted…….
Still, da Rock canna see much downside…………wit pennies fo’ warrant cost…….anna possible upside measured @ possible $1 +….
Iffa da Rock missed anytings…….sumtimes, iffa itsa too good ta be true………..it is cuz I missed sumting…………………..let me know……….
Just da way I see dat!
HardRock