undervalued entry?

With BDL currently trading above 8c the BDLG - 8.5% Converting Pref Shares @ 6c seem undervalued.

This is an extract from the recent prospectus:

"MANDATORY CONVERTING NOTES:

* issued at $0.05 per Note

* 8.5% pa coupon, paid semi-annually

* convertible into a maximum of 5 shares and a minimum of 1 share on
or before 30 September 2005

* mandatory conversion into shares on 30 September 2005

* second-ranking security under Note Trust Deed"

Would welcome comments on this.

Sharkie 13