uranium play

as per previous post, this is an interesting stock.

Hardly any shares on issue.

Spinning off a company called Energy metals with good uranium assets (incl a non-jorc resource of aorunf 600G t at over 3 kg u308 per tonne).

JRL shareholders get oriority access to the IPO (Energy metals) with their entitlement proportional to their holding.

The thing thats interesting is the options. They expire in June. Ex price i believe is 25c, SP is currently bid at 30c. Options are bid at 1.3c, offer at 4c...but some people who cant afford to exercise (or dont want to) are selling...for example, my 50G option bid at 3c got filled today.

In other words, its currently cheaper to buy the options, and exercise them, rather than buying the shares on market. Of course that could change if the shreprice drops...but at least you get access to the Energy Metals IPO, which would appear to be going to be in high demand (according to Warwick Grigor, Fat Prophets etc). See recent FP report (May 05) at http://www.jindalee.net/pdfs/FPM%2018%20May.pdf

As stated though, very high risk play, since the shares may have already run up in anticipation of the IPO...however with 6 million mkt cap and other assets backing that cap, downside limited imo.

Cdchi1