Supreme Cannabis Company Inc. (The) T.FIRE

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Valuation - VFF Raymond

[bever64]

No offense taken! Learning opportunity...i thought the only way to convert was "forced" or past .28c ! Even more reason to buy when the math supports it.

Method wrote:

Your answer Bever, no offence, shows that you really don't understand the debs either.

The floor for the debs is basically the adjusted conversion price. That's because you can convert them at any time which is why 700k have already been converted. 

If the stock jumps to $0.21, the converts would go to at least 0.21/0.285 or 73.68. If not those of us holding debs can just convert and short or sell the stock and be in the same position. But most likely arbs would step in as they already have when the the free arb has become briefly available at times. 

On that basis, FIRE.DB has more liquidity than the common. Also the bid/ask spread on the debentures is less than 2% while the bid/ask spread on the common is over 3.5% at these prices. Another indicator that the debs have more liquidity. 

Not to mention between the interest and the accretion debentures, the debentures make the equivalent of a little more than 5 cents / share in income over a year. 

 

 

bever64 wrote: Im not surprised...people are generally lazy and uncomfortable learning about different things. Liquidity is a concern for the debs....you are correct that they are easily the better investment.i bought commons 2 days b4 earnings with the intent of selling 2 days after earnings....i suppose their is a chance for a swing up 50% to .21 while the debs go from 50.00 -55.00???? Dunno. Seems to be a battle on the bid/ask right now...maybe a fund will figure out what mmcap is doing and accululate a large cheap position?

Method wrote: John,

Aren't you surprised at how many people on this board still want to own the common over the debentures? 

Small investors have a chance to be in a better position than MM by not owning any common and being protected by having MM with them as the majority debenture holder while getting paid to wait.

I don't know what the future holds for Supreme but when the market offers more upside in a safer and more liquid (bid/ask spread is tighter) security with current income, I'll take it every time.

johnale wrote:

Ya to me and this is just my opinion - you don't hold a stock down to dump your position. 

it's definitely an accumulation tactic. 

beena was inserted to run the company and turn it around - and she has. make it investable - and/or saleable. 

(she even says m and a is an option in her article)

MM holds all the cards on a takeover - and whatever other cronies they have accumulating here at .15. 

after q2 and another solid quarter of growth will justify "xx" takeover price and we (and beena and team) will be at the mercy of our largest shareholder (holders). 

then they get their liquidity.

if possible - you get your average price down to .41 with Mm - and at least your in the same boat.