timpb showing yield 33 pa yield fully franked, page-3

Watford,

What you said was true. But you have to be very, very cautious.

According the TIMPB PDS (http://www.fixedinterest.com.au/v14n08.htm),

"The first reset date is 30th September 2009 and at this time investors can convert into shares at a 2.5% discount. The minimum number of TIM shares upon conversion is 0.9091 and the maximum is 4.00. TIM shares are trading at around $1.61 and TIMPB investors will have equity upside above $2.26 and downside below $0.50".

Note that it said "the maximum (number of TIM shares upon conversion) is 4.00". This implies the minimum conversion price of $0.50/share on the face value of $2.00.

But TIMPB is traded at only $1.44 a note, which implies the minimum price of conversion being just $0.36.

This indicates that the market thinks that the TIM would probably be worth only $0.36 a share on 30/9/2009!

No wonder Alpha said, "30c a real possibility"! (See his posts around 6/2/2008).