With just over 14months to go before YALN converts into $3 worth of YAL stock (most likely scenario) or $3 cash payout.. it seems like a value with a return of 22.4% at YALN price of $2.45 (19.2 annualised).
There is a low risk that YAL will trade over $3.96 (requires at 350% increase from current price) or YAL goes bust... which will result in YALN being worth less than $3
Another possible risk is that parent co will stuff further assets into YAL due to M&A activities in Australia therefore increasing YAL price over $3.96
The other option is the hold YAL and YALN which give protection for YAL above 58c.
Complicated stock.. but I guess where there is complexity there is also an oppurtunity!
Thoughts??
YAL Price at posting:
$1.14 Sentiment: Hold Disclosure: Not Held
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