The market constantly provides us with opportunities to act in our own best interest; and this is one of them. In just about an hour from now, the market will close and the opportunity will be gone. Sure there will be another one, but this particular one will not come by again.
Foord Compass Debentures (FCPD). We are not going to waste time explaining exactly what the company is all about or how this particular debt instrument works. Simply, it is currently on offer for R8.69 and it is the last day to trade for a 49 cent interest payment. That is a yield of 5.6%.
Not only that, we estimate that the next two cash-flows coming from FCPD will come in at 50 cents and 52 cents, each 6 months apart. So let's say that is R1.50 from FCPD in 12 months. So lifting the offer at R8.69 means that in 12 months you will have yielded an estimated 17.2%.
I've added a weekly chart for those who want to see it. Less than an hour before the market closes.
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| FCPD - Weekly Chart |
brilliant!
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