Eagle Hardware (EAGL) The Next Home Depo Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Eagle Hardware (EAGL) The Next Home Depo

EAGL 1.550

-1.3%

Jan 21 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: bearcub who wrote (52)	3/21/1997 1:04:00 PM
From: Scott Mc	of 389

The convertible bond is really a bond with an option build into it. this bond at $1000 pays 6.5% int and matures in 2001. (From memory may be off slightly), however at your choice (unless the stocks trades over $27) you can choose to convert it into 55 shares. Since it is your choice, you get some very favorable options which can reduce your risk, since the stock might go down to 10$ but it is unlike the bond would drop in half due to the interest payment and also the maturity date when Eagle will pay back the $1000. A 50% short (27.5 shares you could use 25 or 30) protects you on the down side and still lets you make money on the upside. I really doubt that Eagle will pay a div in the near future, they want their money to expand (which is really great if you think about it),does Home Depot pay a div, if so when did they start? The Conv bond is a great choice, less risk and an income..... After July the company can force you to convert if the stock is over $27 for 30 consectutive days, but really thats OK because you are making a buck at todays prices.. All figures are off the top of my head and may not be totally accurate. Scott

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next