The point to be made is that I posted on many occasions on how the death spiral works in these situations and was roundly pooh poohed and castigated for not having any knowledge in this situation. On several occasions I posted figures and calculations and several people (who did not understand them) instead chose to shoot them and me down.
I tried to tell posters I had had death spiral convertible notes experience in the past but people blankly refused to accept there was even a death spiral at all, as my posts and logic were contrary to their positions.
Now I have been proven completely correct, in that when someone came along to reverse the spiral that a lot of money was there to be made in the prefs, and also for those who bought the cheap both sets of BBI bonds listed in NZ as well, and that the ords holders would get g00sed (and they did).
What I also found constantly irritating and fundamentally incorrect was the constant and fallacious comparison of the ords price and the prefs price and how they were supposed to be interrelated. The reality was always that the prefs were massively more discounted and inherently less risky than the ords ever were as they had a fixed par value of $1 and the BBI ords had no fixed value at all. You were all comparings something with a fixed base to something with no fixed base. It was very difficult to make precise comparisons in that situation.
People on HC need to wake up. Many of you were conned on this string by various posters and when the sh1t hit the fan, you were all talked out of your positions and panicked and sold out, just when the death spiral was at the bottom and the real money was to be made.
You were all led up the garden path. You need to be more on to it. Learn from this and you will trade better. If you logon on often enough and take in what is being said here, you will eventually work out who the better posters are. (and more often than not they are the ones getting sl@gged the most and the ones who tend to support their posts with facts and figures).
Sorry, but this has to be said.
BBI Price at posting:
3.6¢ Sentiment: None Disclosure: Held
