Alaris Royalty Corp ALARF

RE:RE:Anyone trading convertible bonds here? AD.DB

[CHWBeliever]

I researched debentures and tried for or 5 until a few years ago.  Like you the initial offering is never available to individual investors except possibly in theory when offered as an IPO.  The institutional guys always seem to pick these up at a reduced price then the market opens at a higher price.  I have tried several times to no avail.

From what I learned trying to fully understand them I decided my knowledge was not as comprehensive as I would like and the risks outweighed the potential benefits.  While there is a potential for a big upside by holding till they mature an cashing in there is a downside.

I became mostly concerned with the potential for the company to pay out the debenture before the maturity date and avoiding the great bargain for the investors available at the conversion price.  Also, many companies desperate to raise funds through the high cost of floating debentures may be on their last legs so remember the UNSECURED means you could lose every nickel you invest!!!

Two excellent sites I studied were:

1.  Definitions and Key Issues: https://www.incomeresearch.ca/referenceConvertableDebentures.php

Unfortunately I cannot find the second site but it is well worth a search for the site that offers a large listing of existing debentures with all of the metrics of the offering including severall indices based on initial offering and existing offering.

I am an agressive investor with a high risk tolerance.  Like all of us I cannot predict the whims of equity investors and cannot predict the future.  There are many good analysts and others covering the investment industry there are also a few white collar criminals that have yet to be found and locked up!!!