GREY:ALEAF - Post by User
Comment by
vladdraqon Aug 02, 2019 11:25am
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Post# 29988487
RE:RE:RE:RE:Once that 1.10 wall comes down...
RE:RE:RE:RE:Once that 1.10 wall comes down...Method wrote: vladdraq wrote: Method wrote: It's my first time posting and looking at this board.
It seems like there are some long term shareholders here. My apologies if this has been been brought up but I'm curious if those shareholders have a reason for not switching into the ALEF.DB instead (besides liquidity).
They are convertible at $1.47, so at the last price of 75, it's like buying the common at $1.1025 plus you get a current yield of over 11% so you make back the spread between the share price and the effective conversion price in a few months and you are left with continued income and security over the common.
Great post! Care to explain how did you come up with those numbers?
The conversion price ($1.47) and coupon (8.5%) are from the press release. The current yield (11%+) is based on the $8.5 interest you get on every $100 in bonds divided by the last price of $75 (ALEF.DB). The effective conversion price is just the conversion price * 75/100 which gets you the $1.1025.
It's also an interesting idea for anyone who is down on ALEF and wants to lock in a tax loss on the common and switch into the debs while adding income and getting even more upside than the common (because of the interest).
Ok so bascially the 68 share rate per debenture rest the same if the debenture value goes down, great to know! Did you run a black and schoes on the warrants? those are also highly undervalued.