The market is closed so here is the idea of the no risk Investment in CLL.

Assumption:

You insist that you have to be invested during this bear market and the CLL is place to park your money or you are already long on CLL and own about 10,000 common shares (just as en example).

So you have $25,000 cash or sell CLL share to accumulate the cash.

With the leverage 3 to 1 purchase the CLL.DB.A debenture for $75,000.

On Sep17 you could buy the debenture at $88. Yesterday $89 today $90. If you are patient you can average it at $90 cost .

Now when the CLL SP go from $2.8 to $4.5 in 2009 the CLL.DB.A will moved to $112 (just like in 7/30/2008).

If the CLL SP goes to $5 like in 5/21/2008 the CLL.db goes to $120

Here is the math:

CLL SP at $2.8 up to $4.5 ---- 60% gain

CLL.DB.A $90 up to $112 X 3 ----73% +4% interest = 77% gain

If the CLL SP goes to $5 ---78% VS 104% on CLL.DB.A

If you margin the trade by 4 the gain is 144%.

FIRST 3 months of Interest on $50,000 margin will be cover by 6 months interest payment in Dec. It will cost you nothing to own the debenture.

With the last CLL production numbers at 9750 bbl/d they will have sufficient cash flow to pay the interest on DB. No risk here. (I checked with the Etrade on Sep 17. They were happy to margin my $25k by X 4. I assume other brokers would do the same)

Looking for constructive criticism, JUREK.

Please do your own math before you commit to this trade.