sceptical but opportunities exist

This doesn't feel right or look good to me. The company's major asset which supports a $125M market cap is a well which has been dogged by problems. Now we are in the pay zone and have minor gas shows. In the midst of a tanking share price from the announcement earlier in the week, the company takes the stock off the boards for a few days pending an adanceed uranium play. And in the midst of the latter end of drilling the well. Frankly I am suspicious of these developments. The timing is just too cute. Previously I have written about waiting for a time to get in as the price has been weakening off. The stock looked sick.

In 60 days time the company will need to get optionholders to stump up for their exercise prices which will be a very handy slab of new capital to replenish the coffers. It just strikes me as all a bit convenient that the company introduces a uranium play at the end of a well which doesn't look like a smash hit ( apologies to the experienced oil/gas posters whom know a lot about this stuff- certainly more than me).

So how can you maximise profits and minimise your risk.

There are about 150M ordinary shares on issue and about 32M 30 cent options due June 2007. I bet that a lot of the current shareholders are also option holders. They will be thinking to sell the shares at a profit and exercise the options and make a truck load of money. Great idea and it should work. If Paradox doesn't work out to expectations then there will be a rush of option holders selling their fully paid shares to raise cash to exercise their options. In that event the weight of stock to be sold will probably move the share price to somewhere near the option exercise price. The broker to this company CK Locke will most likely be seeking to underwrite the exercise of these options and earn a fee. A smart strategy will be to not buy this stock on the market but to seek to be a sub-underwriter of the options exercise. It is those people who will make the real money. Option holders who subunderwrite the exercise of their own options could expect to get a fee of 4% of the value of the exercise option (broker gets 2%, company pays 6%) Do this and you buy shares at 28.8c.

That's how to make money.