actually the note was convertible at a 20% discount to the share price at ANY time - so in fact the interest rate should be viewed at 20%.
Covered the short for a sizeable 5-digit loss and switched into a long position as the stock showed a strong finish today. Hoping for some solid follow through action on Monday
if they would have trust in the business model they would have given the $4 mln as an equity investment right from the start 12 months ago - with shares trading below $1 then this would have been a great move
it just shows that they know how to do the math. They get the shares at a 20% discount.
the investment has already taken place one year ago. Anglo American now opted to convert the investment into common shares at a nice 20% discount. And while once again this is a dilutive action it improves the company's balance sheet somewhat. But it shouldn't move the shares at all.
I am just pointing out that a short sale might be the best idea to trade today's news - going forward I am absolutely looking to go long the shares but hopefully at a much lower price point
not sure how low this might go but I given the poor setup with the weak markets, the weekend, trapped momentum traders, the stock run-up going into the announcement and the poor earnings quality I wouldn't wonder if the shares end unchanged
it is mainly profit taking and after the geo comments came out shortsellers entered the ship. IMHO there's no chance for the shares to move back above $8 today.
shorted some more here - absolutely looking for new lows later today - huge position
many traders have been trapped already before the geo comments hit - they will all have to exit later today - this could become real fun
will cover if the stock will be able to overcome the geo comments and recoup the $8 level but actually I would expect the stock to break to new lows soon.
a Friday afternoon with world markets in fear AND low earnings quality doesn't bode too well for a 30% run I guess
Geo has commented about the company several times before claiming that reported profits are just hedging gains while the company's actual business remains unprofitable almost all of the time
do not touch the shares here as the shares are heavily overbought short term - wait for entry around $7 or even lower. Stock is up from $5 within a few weeks.