timpb showing yield 33 pa yield fully franked, page-4

Oscarone and zwu: The conversion works as follows: At $1.50 share price, you get $2.05/1.50=1.9 TIM for every TIMPB. Plus you get 3 fully franked dividends along the way equal to a total of 20.2 cents. In fact, the lower TIM goes the more shares you get but, as you correctly point out, up to a maximum of 4 TIM per TIMPB. Clearly, with TIM today at 1.28, if you think there is a chance that TIM can go to 50 cents, you could buy TIMPB for the 20.2 cents fully franked and sell CFD's on TIM. A recent Goldman Sachs report on TIM suggests the outlook is good for TIM with good rains (for almonds) suggesting 100% water allocation. Secondly, there is some upside in their opinion from a test case on MIS schemes. The coupon payments alone represent 14% per annum fully franked with the other 26% per annum equivalent being the capital value from buying 1.45 and receiving $2.05 in Sep 2009 towards purchase of equity. In addition, you can get out early if you need to but at minimum conversion of 0.9092 TIM per TIMPB. I have done a bit of work on the debt sector and own AAZPB, BNBG, BEPPA, IANG, MXUPA, GNSPA and now TIMPB. TIMPB has the biggest overall yield to maturity of 40% now and I think this is because "mums and dads' do no understand it and funds are not buying.