IAAC

[Ramsburg]

Profile: International Assets Holding Corporation (IAHC), through its subsidiaries, offers various financial services focused on international securities and commodities markets. The company operates in four divisions: International Equities Market-Making (IEMM), International Debt Capital Markets (IDCM), Foreign Exchange/Commodities Trading (FECT), and Asset Management. The IEMM division engages in wholesale market-making for select foreign securities, including unlisted American depositary receipts and foreign ordinary shares. It provides execution and liquidity to the United States broker-dealers, regional broker-dealers, and institutional investors. The IDCM division trades and invests in various international debt instruments, including both investment grade and higher yielding emerging market bonds.
Website: http://www.intlassets.com
Market Cap: 178M
Financial Trends:


Trading Idea:
This is mainly a technical pick.
IAAC is riding a powerful uptrend and volume has been rising for the last couple of weeks, the stock traded near $30 few sessions ago, and just had a correction to the ascending support line ($20.70). Yesterday's session was a positive reaction on the support, suggesting continuation.

Short term chart:


Long term chart:


This is probably a risky trade due to price volatility, but we'll limit the downside by having a stop right below the ascending support line, the potential is at least interesting if this setup works.

Trading Plan:
Buy IAAC today during the morning and then set a stop at $20.20

[Ramsburg]

Update:
Nice development for this chart setup, we had the expected continuation, volume decreased a bit but was still high and above average. The $24 level could be a short term resistance, but we continue to expect upside continuation here.

Trading Plan:
Hold IAAC with a stop @ $20.20

Regards,

[jorgegr]

When writing this message it already hit under 20.
See this announcement:

International Assets to Issue $27 Million in Senior Subordinated Convertible Notes
Friday September 15, 9:07 am ET


ORLANDO, Fla.--(BUSINESS WIRE)--Sept. 15, 2006--International Assets Holding Corporation (Nasdaq:IAAC - News) announced today it has entered into a definitive agreement with several institutional investors to issue $27.0 million in aggregate principal amount of the Company's senior subordinated convertible notes due 2011. The sale of the notes is expected to close on or before September 22, 2006, subject to customary closing conditions.
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The Company expects to use the proceeds from the sale of the notes to repay debt and for general corporate purposes.

The notes will bear interest at the rate of 7.625% per annum, payable quarterly in arrears commencing on October 1, 2006.

The notes will be convertible by the holders at any time following their issuance into shares of common stock of the Company, at an initial conversion price of $25.50 per share. The conversion price is subject to certain adjustments set forth in the notes.

The maturity date of the notes will be the fifth anniversary of the issuance of the notes.

The Company may, at its option, redeem the notes for cash on March 11, 2010, at a redemption price equal to 110% of the principal amount of the notes, together with accrued interest and any late charges (the "Conversion Amount"), subject to certain conditions set forth in the notes.

If the ratio of the Company's consolidated earnings before interest, taxes, depreciation and amortization, as defined in the notes, to the Company's consolidated cash interest expense (the "Consolidated Interest Coverage Ratio") is less than 2.75 for the 12 month period ending on December 31, 2009, then the holders of the notes will have the option to require the Company to redeem all or any portion of the notes at a redemption price equal to 100% of the Conversion Amount to be redeemed.

If, at any time after March 22, 2008, the dollar-volume weighted average price of the common stock exceeds, for any twenty out of thirty consecutive trading days, 150% of the conversion price of the notes, then the Company will have the right to require the holders of the notes to convert all or any portion of the Notes into shares of Common Stock at the then-applicable conversion price.

Commencing with the fiscal quarter ending on September 30, 2007, in the event that the Consolidated Interest Coverage Ratio for the 12 months preceding the end of any fiscal quarter is less than 2.0, then the interest rate on the notes will be increased by 2.0% to 9.625% per annum, effective as of the first day of the following fiscal quarter.

The notes will be issued only to accredited investors in accordance with Section 4(2) under the Securities Act of 1933, as amended (the "Securities Act"), and the rules and regulations promulgated thereunder. Neither the notes nor the underlying shares of common stock have been registered under the Securities Act or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. In connection with the private placement, the Company has agreed to file a registration statement to register for resale the common stock issuable upon conversion of the notes.

This press release is neither an offer to sell nor a solicitation of an offer to buy any of the senior subordinated convertible notes or any shares of common stock of the Company that may be issued upon the conversion thereof, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.



Contact:
International Assets Holding Corporation, Orlando
Scott Branch, 888-345-4685 x 335
[email protected]

--------------------------------------------------------------------------------
Source: International Assets Holding Corporation

[Ramsburg]

We were not expecting this announcement 

Position closed this morning @ $20.20

[Maestro]

Strangely, Ameritrade cancelled my stop sell order, activated at $20.20, for the reason "Rejected by Market", and I saw this only after the close, which was at $20.97. Unless the price gaps to below $20.20 at the open tomorrow, I am not going to complain to Ameritrade about this, but now I wonder where I can expect IAAC to go, what effect that announcement about the issuance of convertible notes is likely to have on the stock price.

If these notes can be converted at any time into stocks, initially at $25.50, why does this drive down the price?

[Ramsburg]

Strangely, Ameritrade cancelled my stop sell order, activated at $20.20, for the reason "Rejected by Market", and I saw this only after the close, which was at $20.97. Unless the price gaps to below $20.20 at the open tomorrow, I am not going to complain to Ameritrade about this, but now I wonder where I can expect IAAC to go, what effect that announcement about the issuance of convertible notes is likely to have on the stock price.

If these notes can be converted at any time into stocks, initially at $25.50, why does this drive down the price?

I dont think that was a big issue too, but somehow the market didnt enjoy it, and the stock had a big drop

[soxguy]

anyone watching this one? ,soxguy

[soxguy]

this one is back on my radar. anyone have any thoughts on how much a stock has to fall due to disappointing earnings? soxguy

[soxguy]

going up.sellers were exhausted,i guess. soxguy