There should be more than just a narrowing of the discount.JRL...

There should be more than just a narrowing of the discount.

JRL have stated that they will in effect cease treasury operatrions which has led to the discount in their share price in the first place and look for a strong "company making" project themselves.

So rather than predominately invest in other's projects, they will be an active company in their own right - which usually leads to a premium being placed on their shares.

So I would expect a significant re-rating for this stock once all the unknowns (being distribution amount and form, cash left, sale of remaining EME/ALY investment, new projects) become known - which hopefully will be soon.

The other silly thing about the way the market looks at JRL currently is that there is little or no value attributted to their 20% free carry holdings in GWR and ALY projects.

Eventually these companies will have to deal with the 20% free carry. Given the highly prospective nature of these projects, they must be worth something.

The other issue holding back JRL at the moment is the lack of liquidity. It is very hard at the moment for a large investor to take a worthwhile stake in JRL as there is just not the volumes they would want - so it is left up to the "mum and dad" investors to buy and sell, which can have a negative impact.

I understand that all these issues will be addressed in due course - but I have to say, the mentality os some investors in the short term really does frustrate me.