help, page-3

fatbuck...

The company is suggesting 2:1 as a guidance...so for 100,000 JPR shares you will get 50,000 JBF shares.

In realitity however, the final ration will depend on how many options get converted.

In spite of the suggested ratio of 1:2...in actual fact, the ratio cannot be worse than about 1:1.89...in which case, your 100,000 JPR shares will result in 52,900 new JBF shares.

The irony here is that if the IPO should fail as some sections of the market suspect it might, none of the options will be exercised, resulting in a much better ratio result for holders...lol...but with no IPO for distribution, what's the point.

With a successful IPO however and a likely shell value for JPR post record date of around 7c per share (all options exercised)...then we would need to pay 33c in JPR to give us a neutral return.

Should we see an oversubscription of the IPO however, suggesting a likely listing premium of say 10c (60c listing price)...then we would need to pay 37c for each JPR share to result in a neutral transaction.

There are many variations of this...for example, the shell value of JPR may be 7c post record date, but if say the price were to hold 10c, and we get a listing premium and a 60c JBF price, then arguably, the market could pay up to 41.5c

Clearly, there are many variable here...no less than the actual energy asset planned to be backed into JPR once the "divorce" has gone through...figures suggest this could well see 15c+ on JPR as early as xmas, effectively rendering the JBF as a free hand out!

The big question here however is the IPO...and whether or not it gets taken up by the intos's.

A full book should see significant on-market buying as it shifts from a speculative cheap entry into an oversubscription vehicle for the insto's.

Failure of the IPO sees about 5c for JPR...success sees 30c+

Are you feeling lucky?

So...will the IPO be successful?

Recent similar listing hardly fill ones heart with joy...but one must also remember none of them come even close to JBF's numbers and potential attraction to institutional support.

Biodiesel is a future industry...it will be around long after oil is but a distant memory.

The question we must ask ourselves however...is now the right time to be entering?

I think yes...others will think not.

Cheers!