beppa upside at 35 cents

With the Beppa's trading at 35 cents, the likely takeout is a conversion at the equivalent of 43 cents in November plus the 4 cents in divvy. If you believe that Brookfield have got the assets cheap, then you want to co-invest with them and the only way to do this currently (if you don't hold BBI) is to buy the BEPPA's now. If the new Prime does come on at a premium, then you also get that upside.

Some sceptics will say that the risk isn't worth the return, but I reckon in the absence of a better offer, it's a done deal, so that means if a better offer does come through, the Beppa's are effectively underwritten at the current price as you couldn't imagine a white knight coming through with a worse deal for the beppa holders.

So assuming the current deal goes ahead, the 6 week beppa return is circa 12 cents on 35 cents or 34% which equates to circa 300% annualised.

Obviously it's caveat emptor but the risk/reward is starting to stack up for those who can handle the heat.

As you can tell, I'm long the stock - happy for the HC regulars to tell me where my thinking is flawed.