Twin Butte Energy Ltd TBTEF

RE:RE:RE:RE:RE:wrong again frankiesteve... LOL

[HamSandwich]

Method wrote: Rig,

I totally agree that the interest on the debentures could be stopped on June 30 (when the next payment is due)  and they could be a total write off but you have to admit there are a lot of retail investors and maybe some institutions that still choose to own the common equity instead of the debentures and that that is non sensical.

Certainly the "market" is aware of the debentures but the relationship between the market value of the common ($34m) vs the debentures ($11m) suggests a disconnect. 

I agree.  You don't buy the debentures for the interest.  At 15 cents you have to expect the interest payments to get cut off asap.

You buy them for the risk vs reward .... ie how high of a floor do the debentures have vs the common (the floor on the common is 0)

The fact that there are a handful of debentures on the TSX that pay a higher yield to maturity then the equity would if the equity hit the conversion price just shows you how inefficient the convertible debenture market is in general.