timpb, page-3

If you assume TIM does not go out of business and I believe it will not, TIMPB is 47% per annum rate of return, simple! Market is spooked by any company that has to refinance in next year or two. TIMPB will convert to TIM so TIM will indeed come under pressure and probably converge to the lowest extreme of conversion ratio (40 cents); But TIMPB convets to shares at market as you know; Screaming buy at 1.35 don't you think? Why is price so low? (a) mums and dads do not understand hybrids and are selling debt instruments in what they see as debt crisis (b) no funds are buying these 2nd tier hybrids; Buying TIMPB and a few others which I will mention next week are the way to go in this market; equity prices can get smashed but debt issues converge to 100% of face value as companies survive.