I have $100K in two Capital One 360 online saving accounts (50k for me and 50k for my wife to get the $500 each bonus money) and it is earning 0.75% interest per year.
$100k in a online saving account gets you $750 a year
$100k in 2019 bonds (about $420,000 face) gets you $52,500 a year!
22.95% of par is one of the better asks I have seen listed. The best I have gotten is buying at 24%, but that was a few days ago and already has made up the 1% in accrued interest (it adds up fast when the bond is paying over 50% interest rate).
If I had less sense and more free money I would be backing up the truck here. I have 100k face but to imagine you can buy 100k face now for $23,000 and get a payment of $6250 back in just six months.
$230,000 which is not out of the realm of possibility for some on here and you could buy $1 million in bonds and the May interest payment to you would be a whopping $62,500. You could retire on a quarter million dollars if TC survives.
Price controls on certain drugs....the people want price controls on ALL drugs.
So you spend $4,000,000,000 developing a drug to treat a disease which affects 100,000 people worldwide.
Sucks to be you, we will only allow you to charge $250.
Do the math moron. $2,500,000 a year max profit and it will take you 160 years to pay back your investors.
JF probably has enough spare cash to buy all of the outstanding SDLP stock at this level. I expect he is accumulating and the few shares left he doesn't get will spike to $7 to $8 in a few weeks.
So many people don't understand SDLP vs SDRL. SDLP "dividend" is part of what keeps SDRL afloat. It can't be completely cut.
So by the eight thumbs down, I take it that everyone on here is ok for price controls on drugs? Why invest in biotech if you can't make your money back because of price controls? How would you ever be able to regain $2 billion dollars spent on phase I to phase 3 trials if you are forced to sell at a volume/price which nets you about $10 million a year?
I don't think I phrased my original post very well.
There has been a lot of talk in Congress about price control for drugs, and Hillary has even mentioned some pretty low caps (like $250) on drug prices.
I was trying to point out that we need the higher prices for successful drugs to make up for the tons of money spent in failed drug trials like EC145.
How would you feel if EC1456 is finally brought to market and they are told they can only sell it for $250?
If (and it is a big gamble) you are going to invest in this stock, buy the bonds.
Buy the 2017 if you want a fairly safe return of maybe 25%
Buy the 2018 or 2019 if you want to make 400% to 900%
Last choice is the common stock, which could be great but could also collapse to a nickel on a reverse split then equity dilution.
Or buy all three.
You can see my little trade in there for 24.788 :-(
All the big boys can get a much better price than I can.
I am really starting to wonder if these sudden big chunks are being put together for TC by some entity. Little volume then some dealer to dealer trades and suddenly a big sell to a customer for $2,000,000 face at a fixed even number of 23% of par.
Maybe just dreaming, but if TC is somehow managing to accumulate these bonds in 1% chunks without alerting the market, props to them!
I just bought $10,000 face of the 2019 at the ask of 24.788 (can't get lower) but I see that some entity also just bought $2,000,000 face at 23 about an hour ago. This is the largest trade in a few days.
Well someone just put up a couple of the 2019 bonds for 24.788 ask and I put in an offer at that ask price and it was filled.
Now I am at $100,000 face. I am going to hold there until May, at which point I might make another purchase with May's interest payment.
It isn't a slightly lower coupon. The coupon is 41% lower.
Here, take an example:
You buy $40,000 face of the 2018 for 23.78% of par. You spend $9512
After one year of interest paynents, your basis is $9512 - $2940 = $6572
Now consider you instead buy the 2019 at the ask of 26% of par.
$40,000 face of the 2019 you will spend $10,400
After one year of interest payments, your basis is $10,400 - $5000 = $5,400
So the 2019 bonds will make you at least $1172 more over the period of one year, and if restructuring doesn't happen after that, they will make you much much more than the 2018.
I need $10,000 face more of the 2019 to have an even $100,000.
Today I see the highest bid is 23 and the lowest ask is 26. I submit to the order desk a bid for 24.50 and within a minute it is rejected with just the text "pass". The other low bids on the order book remain (23, 21.9 and even 17.97)
They will probably respond with something that essentially translates into "We Yahoosuck"