|Shares Out. (in M):||4||P/E||0.0x||0.0x|
|Market Cap (in $M):||85||P/FCF||0.0x||0.0x|
|Net Debt (in $M):||0||EBIT||0||0|
Add it all together and you get $25.20 vs the current $21.80 price or a 15.6% return for a week. The obvious risk here is that the bond does not trade to par. In that case, the current $21.80 price of the preferred implies you are paying $6.35 for the bond or 65% of face value for a yield to maturity of 18%. This will be the only debt on the company, which will have a net cash balance sheet.
Looks like a pretty simple (and very attractive) arbitrage to me. Thoughts?