Aleafia is looking to retest a recent support that was made May 3rd.
If it holds then we will see a double bottom & possibly a reverse in the trend after the break through the descending triangle I spoke about in my previous post.
Exactly what I think, and if 1.34 support doesn't hold, then it's down to 1.20 support test.
ScotianBot
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@MrLotus, Yes, i didn't put that bottom on my chart there, i see it now. It's been a mintue since i looked at Aleafia for a trade. After moving to the TSX i knew they would meet some resistance, especially merging with Emblem at the same time lol. It's healthy though, any significant news will rip through those resistance levels, IMO.
Time will tell per usual.
MrLotus
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@ScotianBot, yes, we keep an eye on those crucial support levels and be ready for a rebound.
ScotianBot
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@MrLotus, Well, since i posted this chart on Twitter today & Aleafia got halted hours later, my Twitter account has been suspended.
My stockhouse account has been suspended for the 80th time almost, and CEO.ca has only let me post several times under my account "scotianbot" before they no longer let me.... I'm being censored on all platforms, time to go back to anonymous.
It's not like I'm posting lies or pumping b.s etc, just charts & fact checked DD on differn't companies. Anyway....
Real World Example of a Convertible Debenture
Let's say a U.S. company Apple Inc. (AAPL) wants to expand internationally for the first time to sell its mobile products and services. Investors are unsure if the products will sell abroad and whether the company's international business plan will work.
The company issues convertible debentures to attract enough investors to fund their international expansion. The conversion will be at a ratio of 20:1 after three years.
The fixed interest rate paid to investors on the convertible debenture is 2%, which is lower than the typical bond rate. However, the lower rate is the trade-off for the right to convert the debentures into stock.
Scenario 1:
After three years, the international expansion is a hit, and the company's stock price takes off rising from $20 to $100 per share. Holders of the convertible debentures can convert their debt into stock at the 20:1 conversion ratio. Investors with one debenture can convert their debt into $2,000 worth of stock (20 x $100 per share).
Scenario 2:
The international expansion fails. Investors can hold on to their convertible debentures and continue to receive fixed interest payments at the rate of 2% per year until the debt matures and the company returns their principal.
In this example, Apple got the benefit of a low-interest-rate loan by issuing the convertible debenture. However, if the expansion does well, the company's equity shares would get diluted as investors convert their debentures to stock. This increase in the number of shares would result in a diluted earnings-per-share.