1. KenFletch's Avatar
    Today BB shares have crossed over the $9 mark. $10 is the point where the debentures can be converted to shares!!!! At what share price does it make more sense to own shares than the debt???

    If it keeps going this ways the offer for the other $250 in debt will be a guaranteed bad deal for BB. Interesting dilemma, gotta think they weren;t expecting this to come quite so soon. Starting to look like a no-brainer for the new investors/Fairfax.

    Chris U ... am I reading this right?
    01-07-14 12:49 PM
  2. GTiLeo's Avatar
    the way i see it is it would be more of a benefit to both parties if they were converted into stocks, would be free money for BB and a profit for the invester
    01-07-14 01:09 PM
  3. KenFletch's Avatar
    Well if the convert BB doesn;t have to pay back the loans but all of out stock is diluted

    If I understand correctly the market probably for the most part considered these dentures as shares already

    They will do what works for them, may not work for small sahreholders
    01-07-14 03:16 PM
  4. kfh227's Avatar
    the way i see it is it would be more of a benefit to both parties if they were converted into stocks, would be free money for BB and a profit for the invester
    Share dilution does nothing for us.

    Posted via CB10
    01-07-14 08:58 PM
  5. Shanerredflag's Avatar
    Question...has the OP done the math?
    Is the overall investor better or worse off if they exercise the option on the 14th at 10 bucks a share, and then price for the investor is close to 10?.


    Kind of a no brain er eh?

    Posted via CB10
    01-07-14 09:05 PM
  6. KenFletch's Avatar
    Yah I've done the math. But if the shares are more than $10 the additional debt is a bad deal and BlackBerry should say no.

    In any event that offer is not available to us.

    What makes the best sense for the debenture holders will not necessarily make dense to us. It will pass through a lot of accountants and tax lawyers first.

    The debentures are earning risk free interest. That might be all some want. Convert to shares at $10 when that stock is just a little over $10 and could go down..... maybe not so good

    But perhaps your right. It's a no brainer

    Posted via CB10
    01-07-14 11:24 PM
  7. bspence87's Avatar
    They will not convert at $10. That would be just breaking even. They invested to make money.

    The possibility of converting the debentures will will however hold the share price down after crossing the $10 mark.

    Simple math: $1billion injected into the company < $1billion+ worth of shares distributed to the debenture investors. Hence, the total value of all shares will increase by $1billion but more than $1billion worth will be given to the new investors, therefore removing value from the other shareholders.

    I won't complain though. Never thought I'd even see $10 this fast.
    01-07-14 11:51 PM
  8. milo53's Avatar
    AT&T CEO, deserves the credit.
    01-08-14 01:52 AM
  9. Notcho's Avatar
    They will not convert at $10. That would be just breaking even. They invested to make money.

    The possibility of converting the debentures will will however hold the share price down after crossing the $10 mark.

    Simple math: $1billion injected into the company < $1billion+ worth of shares distributed to the debenture investors. Hence, the total value of all shares will increase by $1billion but more than $1billion worth will be given to the new investors, therefore removing value from the other shareholders.

    I won't complain though. Never thought I'd even see $10 this fast.
    That's what the deal was $10 a share Fairfax has the option to get there money back or invest it back in BlackBerry

    Posted via CB10 on my ?Zed10
    01-08-14 02:08 AM
  10. KenFletch's Avatar
    The current holders can convert anytime they want they might want to collect interest for a few years then convert and sell for a nice capital gain. Let's them me money twice.

    Of course BlackBerry could pay the loan out first as well.

    But nothing new there except we might see $10 before anybody expected.

    I find the offer for the additional $250M more interesting. Can BlackBerry say no thank you at this stage? Is having more cash available still worth it even if the share price goes over $10 before the 14th? The origin deal had conversion at 10 as a sweetener to the deal the reward some of the risk but if $10 is almost certain that is a worse deal for BlackBerry and current shareholders.

    Just looked, recent price $9.68!!!

    Posted via CB10
    01-08-14 08:47 AM
  11. zee3p0's Avatar
    More debt is not a good outlook. There is nothing good about this. Just more iron grip for fairfax while they squeeze the heads of BlackBerry and shake the pennys out of everyone's pockets.

    Posted via CB10
    01-08-14 03:32 PM
  12. RubenDM's Avatar
    Bbry right now is at 8.49(after stock)...
    Where do you guys find those 9.68?
    01-08-14 03:42 PM
  13. soaresr's Avatar
    Bbry right now is at 8.49(after stock)...
    Where do you guys find those 9.68?
    On the Toronto stock exchange.
    01-08-14 03:56 PM
  14. KenFletch's Avatar
    Well

    Finished day at $9.20CDN

    And

    Fairfax is taking up the 250M in debentures

    Duh

    Posted via CB10
    Last edited by KenFletch; 01-08-14 at 07:14 PM.
    01-08-14 06:42 PM
  15. Frosty_Power's Avatar
    Woo hoo! Up at $11.09 right now!
    01-20-14 10:04 AM

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