Big Dog's Boom Boom Room Message Board

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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: tom pope who wrote (96852)	2/15/2008 3:17:23 PM
From: upanddown	Read Replies (2) of 206326

Tom It does seem to be stabilizing here but I'm concerned about overhead resistance from the big PIPE that closed at the end of Aug. Those guys are sitting on 40% losses minus maybe 4-5% in divs. Hopefully, the ones who wanted out also wanted to be the first out the door and the rest are willing to stick it out. Curious about the pricing on PIPEs. The last one priced at $31.25 on a day when the mkt price was about $3 higher. Is there a fixed discount to mkt price on the closing date? Why not buy the PIPE and short the common? Seems like you lock in a risk-free 8-9% return or 16-18% annualized if the lockup period is 6 months. Probably would beat a lot of hedgies over that time period. I decided to go with Apr 22.5 calls instead of the common since I would have had to buy it in an IRA. 150 at a little over 50 cents avg. Hoping to maybe catch a runup to the May div. We shall see. John

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