what about buying at 1.07 and selling calls on it. still think the drop in price would eat up all the premium income? thanks in advance.
i was thinking of buying the shares for 1.07. then selling a sept 1.50 call for 4 cents, doing something like that every few months (assuming it stays below 1.50). if the stock shot up above 1.50, i'd get the 1.50 plus the premium on the call i sold. but now i see how weak this pos is, i'd be afraid it'd fall more than i got in premium. i don't ave hany experience in writing covered covered calls and was just toying with the idea for an ira investment. i figured several cents every quarter in premium income would be better than the 2 basis points i get in money market every year. i have already figured out management sucks. i heard the guy from jeffries saying it looked like a buyout candidate by a bigger player that could refi the debt at a much lower rate and take advantage of tc's low cost structure. there are a lot of wounded people on this board that are not very friendly to newcomers. i appreciate your input.
if tc was in danger of going bk, the short interest would not be 1.7 percent. that's my simple answer.
they are only obligated to sell 52 percent. the other 48 percent is a play on gold. and when you talk about the 435 dollar price, isn't that in addition to costs of extracting it. if you are long, don't you have an incentive to state your case so others that are looking at this stock want to go long? are you someone who is long at a much higher price?
i looked and saw the times sales sheets show all these hundreds. i can't believe that any retail customer uses 100's. but i saw that i could buy maybe some shares for $1.12 and then turn around and sell a call with a $1.50 strike for maybe 4 cents a share going out to the sept maturity. it seems like a nice idea. any thoughts? does anyone do this with the covered calls as an income generator?
excellent info. i appreciate your posting your sentiment. it means a lot to me. i have not been following this for as long as you and i really appreciate your informed opinion.
someone, probably goldman, is manipulating this baby down, accumulating it some way using various entities that are unrelated, so that they don't have to report a 5 percent interest. then they will force a buyout at close to book value and the acquirer can use the cash on the balance sheet for the down payment. lol. it's a total joke. the management suck at caring about the share price. investor relations is a joke. insiders and the company should be buying the stock to thwart a buyout attempt. i'm waiting for the downward manipulation to stop to buy into this as part of my overall portfolio gold hedge. i would not doubt that the accumulator gets it down to under a buck to delist it and get holders to dump it for that reason.
the guy from jeffries that pointed out it's a buyout on the last conference call is probably in on it as well. lol the only people that aren't are the idiots that run the company that will lose their jobs when it gets bought as a play on refinancing its debt with a bigger, stronger owner at much lower rates. this owner just wants to get at the lower cost structure to make its cost structure look better. it's real simple.
monika, do you this tsu and/or viv might be a good play on the olympics and the idea that cell phone use will be increased? thanks in advance. :O)
i'm thinking even the chinese gov hedge fund to get at the gold. the chinese and russians have been accumulating. and then there are big miners like rio. they can use their shares for the purchase or leverage the deal with very low interest rate product. then refi tc's debt. there are many possibilities. like that jeffries mentioned it. obviously, if you get tc's price to rise, the debt to equity improves. i view tc as a gold play, then as copper, then as moly. i like what i heard of the call. it's a way to play the rebound in gold, the reversal of the fall of the canadian dollar against the usd. i am liking tc especially since it's got alot of cash per share that an acquirer could use to reimburse itself after the m and a work. it's like it's a forver call option on the price of gold, copper, the luney v. usd etc........... and that there's next to no short interest on this is telling as hell.
the analyst asked any idea who will buy you. he said tc has one of lowest costs in industry and that it also has high interest rate because of its size. he pointed out that abig player would buy it to take advantage of its low cost and that the big player could lower its interest rate. so it'd profit from low cost and difference between high rate and low rate. makes sense. especially for stock for stock and then for leveraged buy since rates are so low. i also like this stock as a gold alternative.