value for money or deadduck, page-2

have you looked at AAZPB?

The reasons for buying AAZPB are quite compelling. ALZ is in better shape than most of its peers with quite conservative debt level. So in Sep08, ALZ faces a choice between 3 options (a) pay out AAZPB noteholders (b)convert to equity or (c) pay higher interest rate (step up 2.5%);

I believe most likely option is (a) as (c) is out of question (as I believe they have ban finance available) and (b) would be a reluctant choice as equity is too low. So without doing PV calculations, you buy 90, and get 102.5 of cash in 3 months; 12.5/90=55.5% per annum rate of return. i.e. if AAZPB was a cash management trust offering 55.5% per annum, would you invest? Actualy, it is better than that as most of the gain is capital not income. Am I wrong?

Even if the unlikely even of (c) occurs, I work out rate of return long term say Mar 2012 is 16% per annum. (b) is best option as you pick up conversion bonus. But cash payout most likley in my opinion