Forum Archive Index - February 2000

["Paul Frost" <frostpt@ihug.co.nz>]

Amy

AQLGA are what are known as convertable notes.

These particular notes mature on 30 September 2000.

At that time note holders have the choice of converting them to AQL shares
on a 1 for 1 basis
or redeeming them for cash (.25c per convertable note).

They also pay interest (12% per Annum). 1.5c per note on 31/03/00 and 1.5c
per note on 30/09/00
If purchased now, this equates to an annualised return of about 18% pre-tax
(I think?).

Basically this investment has no risk (subject to AQL remaining solvent for
the next 8 months).
At the very least you are guaranteed to receive back .25c per note plus 2 x
1.5c interest payments.
Should the AQL share price appreciate in value to over .25c by 30 September
this year, you still have the option of converting the notes to shares.

In other words by buying AQLGA you can share in most of the potential AQL
upside, without the downside, plus receive a very good rate of interest.

Amy, these notes last traded at .23c.If you placed an order at .24cents I
think you could be relatively certain of having your order
filled.Alternatively, you could place an order at .23cents and wait in the
queue and take the risk that your order isn't filled.

I hope this helps.

Disclosure. I own AQL & AQLGA.


----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
To remove yourself from this list, please us the form at
http://www.sharechat.co.nz/forum.html.