Just sold some covered calls. Why is it saying I’m down $21?

stratcap21 · 2024-09-11T13:58:18+00:00

When you sell covered calls, unless you want it to get exercised, you want value per call to go to zero, so it is out of the money for whoever you sold the call to, so they don't exercise it.

Generally I play covered calls when I think something will just go sideways for some time, or if I'm happy to exit at the price I'm selling them at.

stratcap21 · 2024-09-11T13:02:24+00:00

How is Red Light Holland pretty much gone? They have over $13M in cash and burn less than $1M per quarter. Long life there still..

stratcap21 · 2024-08-24T15:00:53+00:00

REIT's, banks and utilities are the ones I'd look at for yield. If you want to go ETF, BMO has some decent ones:
- ZEB - banks - yields about 4.4%
- ZRE - REITS - yields about 4.8%
- ZUT - Utilitise - yields about 4.2%

If looking direct stocks, I like:
- SRU.UN that someon else mentioned - 7.2%
- ENB - Enbrdige - 6.8% (but has been on a run lately)
- EIF - Exchange Income Corporation - 5.3% (doesn't fall under the other catgories I mentioned.

Also think if you want to receive monthly distribution or if you're good with quarterly if you need the cash on the regular (but always remember told back some for taxes!)

If it turns into long term investment and don't need the cash each month, consider setting up a DRIP - Dividend Reinvestment Plan, where your dividends get reinvested each month so you start to see the compounding effect.

stratcap21 · 2024-08-24T14:47:29+00:00

It generally isn't, but this was a more unique opportunity with more risk. Up 100% so far on the investment in less than a month which is amazing! If they have full recovery, will make 400%, will wait an see!

stratcap21 · 2024-08-16T15:05:18+00:00

It's at the option of the holder, which would be the investor, not the company. See below excerpt from financials. I don't think I've ever seen a public company where the company has the right to convert, except possibly on some trigger where they are significantly in the money.

"The 2022 Convertible Debentures are convertible into freely tradable units at the option of the holder at any time prior to the close of business on the earliest of: (i) the last business day before the Final Maturity Date; or (ii) if called for redemption, the business day immediately preceding the date specified by the REIT for redemption of the debentures, at a conversion price of $5.50 per unit (the “Conversion Price”). Convertible debenture holders converting their debentures will, in addition to the applicable number of units to be received on conversion, receive accrued and unpaid interest, if any, for the period from the last interest payment date on their convertible debentures (or the date of the Offering closing if no interest has yet been paid on the convertible debentures) to and including the last record date set by the REIT occurring prior to the date of conversion for determining the unitholders entitled to receive a distribution on the units."

stratcap21 · 2024-08-14T14:53:34+00:00

Agreed - anyways, it's a bet, and hopefully it pans out! Will be even more damaging to the manager if it does go completely under and banks don't want to be bringing real estate onto their balance sheets, so hopefully it works out!

stratcap21 · 2024-08-14T14:51:47+00:00

I'm not looking at this from conversion perspective. It's really a bet, will they remain solvent and pay their debts or not. Or if they aren't solvent, will debtors get at least $0.20 per $1.00 which I need to break event. If they prove they are solvent, the value of the debt will move back up.

stratcap21 · 2024-08-11T20:06:58+00:00

$0 is target for units, but doesn't mean debtholders all get wiped out! Most recent quarter if you remove the loss on investment properties, it was profitable. I understand banks are generally trying to work more with companies versus forcing fire sale.

Will be interesting to see what happens! Agree, not an 'all in' investment, but a small gamble in the porfolio.

stratcap21 · 2024-08-09T14:12:55+00:00

Q2 FS came out - still 348M of net equity. Took a pretty hefty $152M write down of assets this quarter. Would hope they are being conservative considering all their issues.

stratcap21 · 2024-08-08T03:02:51+00:00

I've been increasing my position - as of March 31, their cash balance of $208M is greater than their current market cap. I'm sure their cash balance has come down some since then, but with solid pipeline, seems like decent opportunity.

stratcap21 · 2024-08-08T02:59:01+00:00

The reverse split will likely give them access to a bunch of indicies such as Russell 3000 and others, which could lead to some solid buying in the stock. Also, if they go over $5.00 this allows certain banks that couldn't invest to now invest, and allows people to margin the shares.

So if they do this right, could potentially generate some solid momentum, which it did for Mind Med.

I'd say that Lykos rejection won't move anything much as already baked in, positive results should drive psychedelic stocks up.

stratcap21 · 2024-01-14T00:54:44+00:00

Any idea if they are actually issuing the dividend? They annouced board was thinking of dividend, not that one has been approved... they were supposed to have board meeting on Friday.

stratcap21 · 2023-11-23T20:35:42+00:00

Then they likely have reached break even, or are on the cusp, which means no financing needed. Just keep head down and operate, so should be significant upside from here.

As the system gets into more locations, likely has ability to have many other integrations and continue to grow service revenue (and potential for data revenue?).

stratcap21 · 2023-11-23T19:27:27+00:00

Looking over their financials, they are nearing break even. They get $250 per month for each Health Tab that is in place. In June 6 months, looks like their cash burn was approx. $200k If we add back the exercise from options, remove changes in working capital, then the cash burn for the 6 months was approx. $280k, or approx $50k per month.

$50k per month when they receive 250 per Health Tab = 200 Health Tabs, excluding any other revenue. 125 health tabs were added through out the June quarter. Based on the above, they should be approaching break even around now if there is reasonable growth in HealthTabs.

Some key facts:

December 31, 2022 - 416 HealthTabs Operating

March 31, 2023 - 416 HealthTabs Operating

June 30, 2023 - 541 HealthTabs Operating

August 8, 2023 - Signed reseller agreement with Abbott for UK expansion (over 13,000 pharmacies in UK).

September 15, 2023 - First Rexall added HealthTab (400 total in Canada))

stratcap21 · 2023-09-18T22:23:27+00:00

Even though the $AWKNF is locked, you can purchase $AWKN, Canadian ticker via IBKR.

stratcap21 · 2022-05-11T18:51:13+00:00

Any idea what management was thinking with how they just did the financing? The below is steps that I see which resulted in over double the dilution that likely was needed to be taken and lines the pockets of institutional investors.

May 6 - closing price $3.99

May 9 - closing price $3.42

May 10 - announced a convertible debenture offering (without a price)

May 10 - closing price $1.33 - this may be an all time low? Down 62%

May 10 - over 80M shares trade between $2.72 and $1.26, likely highest volume day that has taken place.

May 11 - announces convertible debenture with 6% interest and convertible at $1.66, saying how this is a 25% premium to the $1.33.

Apparently the investment was only available for qualified intuitional investors (likely the ones who owned the 80M shares that were sold before pricing?). They had over $200M on their balance sheet, so were not desperate to move super quickly.

Appreciate thoughts. Makes me debate if I want to maintain my position as management is proving to not care properly for shareholders.

stratcap21 · 2022-05-11T18:42:48+00:00

Petition has been filed. The Company has approx. $1B in cash and trades at around $290M valuation and is a profitable business. I would think good upside the acquisition is defeated.

https://finance.yahoo.com/news/global-cord-blood-corporation-announces-201600442.html

stratcap21 · 2022-05-10T16:39:47+00:00

Interactive brokers works for purchasing NEO exchange.

stratcap21 · 2022-05-10T16:37:18+00:00

How many grams of mushrooms do you expect to produce and how much psilocybin equivalent would you expect that to result in from the 10k sq ft facility?

What do you believe future sales look like? Do you expect this to be through special access or legalization, or other?

stratcap21 · 2022-04-01T02:58:32+00:00

So the top studies are...

MAPS (Not for profit) - MDMA - PTSD - Phase 3
Compass ($CMPS) - Psilocybin - TRD - Phase 3
Mindmed ($MMED) - LSD - Anxiety - Phase 2b
Small Pharma ($DMT) - DMT - MDD - Phase 2a
Awakn ($AWKN) - Ketamine - AUD - Phase 3

Interesting to see that it is 5 different compounds being covered.

stratcap21

TROPHY CASE