I don't buy shares anymore. Bonds can't be diluted or given away as free candy by the board. Bonds can't be cut like dividends. If the company survives, the bonds thrive.
But the thing is, you may actually get a 300% return or higher on the bonds over a short period. As the deadline for repaying grows closer and they are staying at 14% of par, either they are going to go up 600% over a short period or TC will be filling some form of bankruptcy. The stock does not get to hold on to 300% gains if TC defaults on the bonds.
Filled 20k so far, evidently there is some liquidity here for small purchases.
By the time the cash is depleted though, the unsecured will have paid you back the entire purchase price. Essentially you are getting a free ride on these bonds.
30k face. The last time I had $30k spend to throw at TC was when it was $3 a share.
The court would have to allow a sale of other property, like Lang, Berg. That coupled with the existing cash on hand and cash flow would easily pay off the secured, leaving quite a bit left for the unsecured. There is no reason the unsecured should be trading this low. (The secured should not be trading at 75% of par either...it should be at least 90% of par)
Amazing bonds are down so much today with stock up so much. Backing up the CAT
The thing with the bonds is you have a guaranteed quintuple or better if TC does not go toes up. If you buy the 2018 for 14% of par, you are guaranteed in less than 2 years to either have made 6x your money or TC will be bankrupt.
The stock might go up or stay flat, but there is no guarantee it will be 600% higher in two years.
Good news I guess for TC if they can buy but really it does not make sense for the secured and unsecured to be trading so low if the confidence in TC itself is rising.
Could be a lot of stupid bondholders who don't pay attention to copper and gold prices?
I have not been following the bonds closely but I did notice the 2017 is down around 74% of par. Why is it trading that low? With gold well above 1100 there is great value in those secured bonds.
I might nibble some more when I get the May bond payment on my 2019 bonds. They have been trading as iif TC has less than a year to live.
That is good. If people bought above $100 then they are not going to sell at $90. A large move up may be in order if there are no sellers.
What is that, a 25% return?
Too bad you sold me your 3800 shares at $3.
Insider buying is part of the news. Upgrades.
Maybe next time you can hold on for a little while longer.
Someone who needs money (maybe they have to scrap together money for another purchase) also needs to dump about 5,000,000 shares. With the volume as low as it is, they are trying to do this over a period of a month, with 200,000 shares per trading day. This is really the only reasonable explanation why it would trade so far below cash on hand levels. Trading at cash is sometimes normal, trading 10% below cash is rare but happens, trading this far below cash is nearly unheard of.
Ok, now just got 1900 fill...weird, filled 1900 at 2.71 when the bid/ask was 2.72/2.75
My trading platform must be poor :-)
We are not talking a lot of volume here.
Heck, you could buy back shares just because they are selling for 80% of true cash. Buy em all back and you still have $60m cash on hand. Then partner up with someone.