intelligent investor, page-10

A lesson learnt from BNB - never invest into equity company for a company in default. TII rightly have a SELL (strong sell) on all TIM equities.

TIMHB / TODHA are completely different - they are senior bonds with floating charge on the properties / cash and water rights.

TIMHB / TODHA are composed of similar assets - orchards etc

A complete independant revaluation was completed on TODHA properties in JAN09 with an approx 7% reduction in market value.

Regardless, the trustee ensures that the assets + cash backing per share is at least $150. If value drops below this figure, TIM has 7 days to top up the value via cash injection/or insertion of assets. IF TIM fails, trustee will sell assets to raise funds for payback of face value - $100.

At $25, the bonds represent very low risk IMO as the return on face value would be much higher.

The 30% yield is a bounus.