Strange relative prices?QTRH $2.58
QTRH.DB $1.02.10
Beats me why someone would sell the stock and buy the debentures at these prices.
If I were looking to hedge I'd buy the shares and short the debentures.
Of course it depends on your take on the company's future.
If the stock is destined to stay at $2.60 forever then you're better off with the debentures--though if interest rates rise you might have to wait until maturity to prove it..
If the stock is headed to zero then you're also better off with the debentures--though worst case they'd both go to zero.
If the stock is going to $5.20 you'll get a 100% gain (plus dividend) with the stock vs. a 34% gain (plus interest) with the debenture.
If the stock is going to $10.00 you'll get a 288% gain (plus dividend) with the stock vs. a 158% gain (plus interest) with the debenture.
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I suppose the argument for the debentures is that the scenarios where the stock does better than the debentures are all scenarios where the debentures do pretty well regardless.