does not make sense to me, page-3

A few of us predicted this widening of the gap between BBI and BEPPA. It comes as no surprise whatsoever. In fact, I was surprised it did not happen earlier.
I was given an early Christmas present on Dec 24 last year when I bought a stack of BEPPA at 8.5c when BBI was trading at 9c. The irrationality of markets provides opportunities.
BEPPA is a debt hybrid and as such it should never have mirrored BBI on the way down. It was sold down to 4.5c because some people were of the view BBI was going into administration and BEPPA would be worthless. If BBI has positive equity when BEPPA matures in June 2012, then BEPPA are worth $1.04.