Stockhouse members have their say as we feature today's Top Poster, Bullboard, and Blog, and recognize noteworthy contributions from our community
Top Bullboards post:
“The debenture can be valued as sum of two parts – fresh equity and an income stream. The interest payment on the debenture is $5.4 mm per annum. The net present value of the interest payments are $22.7 mm using 6% discount rate. In other words, if the debenture investor wants to earn a 6% yield, the income stream is worth $22.7 mm. $86.25 - $22.7 = $63.5 value of the fresh equity. So, the income stream is worth $22.7 mm and the fresh equity is worth $63.5 mm. $63.5 mm for 14.8% of LSG implies the total mkt cap should be about $428 mm. LSG has 444.3 mm shares plus the 61.6 mm new shares from the debenture = 505.9 mm shs. Current mkt cap of $428 mm divided by 505.9 mm shs = $.85 cents per share. Or you could simply say – they diluted shareholders 14.8% so the stock should drop 14.8% which would get you to about (1 - .148) x 1.13 = $.96 . . . but this doesn't take into account the reduction to cash flow due to the additional $5.6 mm in annual interest expense.” From clestor on the Lake Shore Gold (TSX: T.LSG, Stock Forum) board.
Intertainment Media (TSX: V.INT, Stock Forum) received the most reads and posts.
thedave2006 provides what he considers to be a few decent picks in mining sector in Thedave2006 Investment Ideas blog.
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