HarryDent, the assumptions you suggest are as follows:TIM...

HarryDent, the assumptions you suggest are as follows:

TIM presently $1.03 and to be $1.50 as at 30 Sep 2009 which is the conversion date of the TIMPB (and a pretty big ask in my opinion)

In this time TIM will likely earn divs as follows:
Sep 08 3.0c
Jan 09 4.0c
Sep 09 3.0c

On the other hand, buy TIMPB at $1.62 today and provided that TIM price stays between $0.51 and $2.26 you will receive $2.05 in TIM shares at Sep 09.

Assuming the price is $1.50 then there will be 1.367 TIM shares for each TIMPB at conversion.

Plus there are these ff divs to come

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

Assuming an investment of $100,000 in each, this is how they will stack up:

Buy TIM = 97,087.4 shares ($100k/$1.03)
...and receive $9,708.74 in FF divs for a total investment value of $155,340


Buy TIMPB = 61,728.4 ($100k/$1.62) which will then convert to 84,382.7 TIM
...and receive $12,512.34 in ff divs for a total investment return of $139,086

I've bought TIMPB because I don't share your optimism as to the share price in Sep 09. I figure it will still be around the $1.00 mark in which case I'll pick up a generous div flow plus have $2.05 worth of TIM shares whetever the price for which I will only pay $1.62 for today. I can only lose if the price of TIM falls below 40.5 cents