valuecfa Posted September 18, 2009 Share Posted September 18, 2009 Call price for ORHpA before Oct. 2010 is 26. Today it is trading over 25 and 20,000 shs have changed hands up to 11:15. So it seems a decision has been made on the preferred's. Was hoping they would exchange these into FFH debt or leave as is. It is a yield investment, which is stil a pretty nice yield. I believe it has nothing to do with being called. Link to comment Share on other sites More sharing options...
FlyingArrow Posted September 18, 2009 Share Posted September 18, 2009 Many of us sold and bought back into FFH. In my case sold at 62.50 and bought back into FFH at $367 CAD on Sept 14. Lucky timing but the runup in FFH to $398+ CAD means that the ORH deal would have to close at more than $67.80 for me to have left any money on the table. I think that highly unlikely. Given that I originally sold FFH at $372 CAD to finance the purchase of ORH at $48 this has been a very satisfying round trip. Link to comment Share on other sites More sharing options...
FFHWatcher Posted September 18, 2009 Share Posted September 18, 2009 Has anyone's opinion changed or became even more convinced with the ORH buyout with only 5M shares or so traded at above the proposed buyout price? Link to comment Share on other sites More sharing options...
ERICOPOLY Posted September 18, 2009 Share Posted September 18, 2009 Many of us sold and bought back into FFH. In my case sold at 62.50 and bought back into FFH at $367 CAD on Sept 14. Lucky timing but the runup in FFH to $398+ CAD means that the ORH deal would have to close at more than $67.80 for me to have left any money on the table. I think that highly unlikely. Given that I originally sold FFH at $372 CAD to finance the purchase of ORH at $48 this has been a very satisfying round trip. I too sold at $62.50 and got back into FFH at $344 USD. $67.58 price for ORH is needed to match this. The other thing I did with the proceeds was to write Jan 2011 $30 WFC puts for $8.88. Today those puts are at $7, giving me a price of $68 from ORH to match it. Not sure if this will be the best way to go with WFC, but it will be a 42% 16 month return if WFC is at or above $30 when they expire -- I like that, you know, 42% is okay with me... I think it will beat the market ;D Link to comment Share on other sites More sharing options...
arbitragr Posted September 19, 2009 Share Posted September 19, 2009 ... write Jan 2011 Hey Eric, may I ask why you didn't do it for the Jan 2012 ones? Too long? Premium is higher but ... Link to comment Share on other sites More sharing options...
ERICOPOLY Posted September 19, 2009 Share Posted September 19, 2009 ... write Jan 2011 Hey Eric, may I ask why you didn't do it for the Jan 2012 ones? Too long? Premium is higher but ... I don't remember the 2012 being available at the time. However, going by the prices today the delta is only about $1.80 between the 2011 and 2012 puts. That's not enough to wet my whistle. I think it's (my bias) already a given that the shares will be at $30 in 2011, so making an additional $1.80 for the following 12 months only gives me an extra 8.5%. That's just not high enough of an annualized return... 8.5% is crappy. It had to be at least 12 months to expiration because I don't want to pay 35% short-term capital gains rates... so that left me with the 2011 as my only viable option. Link to comment Share on other sites More sharing options...
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