Stockhouse.com uses cookies on this site. By continuing to use our service, you agree to our use of cookies. Cookies are used to offer you a better browsing experience and to analyze our traffic. We also use them to share usage information with our partners. See full details.
I Agree
×
Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Privacy Policy | Disclaimer

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Privacy Policy | Disclaimer
Please Try Again {{ error }}

Send my password

Return to Login
SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

IBI Group Inc T.IBG.DB.E

Industrials
IBI Group Inc. is a global design and technology company. The Company offers a range of services, including architectural controls, architecture, bridge engineering, civil engineering, construction management, data analytics, design technology, development engineering, economics/financial analysis, electrical engineering, energy solutions, engineering, environmental assessment, geomatics/land surveying, highway and road design, and indigenous engagement and relations. The Company¿s services also include interiors, land use planning, landscape architecture, mechanical engineering, municipal infrastructure, operations and maintenance, parametric design, placemaking, planning and urban design, public outreach, research and development, software development, systems engineering, traffic engineering, transit planning, transportation engineering, visualization, water resources management, and water/wastewater. The Company has over 60 offices in major urban centers across the globe.


TSX:IBG.DB.E - Post by User

IBI Group Inc
Bullboard Posts
User Avatar Image
(0)
•••
Comment by HamSandwichon May 09, 2016 11:47pm
74 Views
Post# 24856515

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:nice lil breakout to 52wk highs on ibg....

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:nice lil breakout to 52wk highs on ibg....
HamSandwich wrote:
nkbourbaki wrote:
HamSandwich wrote:
Calgaryrider wrote: If the stock drops from $10 to $5, the debs will also drop 50%


lol, no.


Isn't this approximately correct?

The coupon is only 7%, so any substantial premium to par in the debs is coming from the convertibility.  I can't see why they wouldn't track the common, either up or down, provided the common is at-or-above $5.

If the common is at $10 then the debs should be around $200 per $100 face  -- of course a bit higher because of the coupon, depending on time to maturity.   If the common drops back to $5 then the debs should retreat to a bit north of $100.  So the haircut in the debs would be around 50% as claimed.  

I was referring to downside protection that is offered UNDER the conversion price. If the market shits and the common drops from $5.50 to $4.00, I would not expect the debs to drop in tandem.  
 


It's a rough approximation, I supposed it's not terrible.  Although there is some stickiness around par.

But yeah all of the protection is below $5.00.  The protection is massive.   Here's my calc based on today's closing price.  Hope the pic embeds.

User image





Why would you go for the common over the .DB right now?  Maybe if this is in a non-registered account and you want to avoid the interest income ... even still I don't like it.

Risk adusted return homies. 
Bullboard Posts
Dealroom for high-potential pre-IPO opportunities