LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

$1.40 Ceiling

[stitch1956]

There is roughly $100,000 in debentures that are exercisable at $1.40. Until the price of gold moves significantly higher--$50 to $100, I think the shares are unlikely to break the $1.40 ceiling. I would happily have someone shoot holes in this argument as I own the debentures.

[ub40eh]

Stitches I think your right, with the $105,000.000 of debentures out there... I think the glass ceiling is in tact until the market cant keep it under the magic Buck/40. We have the 100 million in the bank so we should be able to move forward....... but No. I'm a bettin Man and I think the number is $1,300 US POG. then look out,... a major flood of selling from all the players that want a

[HamSandwich]

I think the more interesting question is does it make sense to own the debentures instead of the common until the debentures mature? It was a lot more appealing at a deb price of ~ 105 than ~ 108 imo, we're talking the difference between 2.5% yield and basically 0 yield.  At least with some yield you can treat this as as the equivalent of short term corporate bonds in your portfolio

[borne2run]

It's a tough call here as I tend to buy on pullbacks. Above par, I would only buy the debs for a registered account. Why? If the price of the shares do not climb above $1.40, the debs will be redeemed at par. In a regular account, the interest received would be taxable as income and the loss ($8) would be treated as a capital loss. No net gain, but you owe the taxman.