Just some simple calcs off top of my nead, haven't spread sheeted this one up.
Buy 100k TIMPB @ $1.39 = $139,000 12 month int = $17,420 Redeemed for CASH =$200,000 Profit from Return = $78,420 for 12 month hold
Hedge Losses Concurrent short 68% TIM approx 100k TIM @ $0.90 =$90,000 Redeem date TIM = $2.50 @ 100k shares = $160,000 loss add-back $5000 int on short funds for 12 months Loss from Short= $155,000 for 12 months
Net outcome = $76,580 LOSS from play
As you mention the outcome is break even at 15c on the down side but still not a good look for 12 months money tied up. These are extreme examples but there is risk unless my thinking is wrong.
cheers
TIM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
