Thanks NeilN and Watford...I had a look at TIMPB and cannot...

Thanks NeilN and Watford...I had a look at TIMPB and cannot believe my figures but I've double checked and believe they are right.

Both of you are absolutely correct...why would anyone want to be in TIM when they can have "preference" and an almost locked in brilliant return.

I still have my doubts about TIM been able to hit one out of the park but it will linger on as it has and provided the share price stays above 51 cents at the TIMPB reset date of 30 Sep 09...then there is a locked in capital gain.

I bought TIMPB yesterday at $1.62 and provided that TIM price stays between $0.51 and $2.26 I will receive $2.05 in TIM shares at Sep 09. Capital Gain of $0.43

Plus there are these ff divs to come

Sep 08 6.77c
Mar 09 6.73c
Sep 09 6.77c

Grossed up that's 20.27 cents and 8.7 cents in FC's

For my super fund this is an after tax return annual return of approx 26%

NeilN please explain more about your hedging if you wouldn't mind as I agree with you...come Sep 09 there will be a lot of people wanting to get off the good ship TIM and what will that do to the price?