JPR - Jupiter Energy

[canny]

Many might have missed this little beauty - just starting to shape up price wise.
Jupiter have a bio diesel spin off happening shortly, where they intend to give all JPR holders a free Jupiter Bio Diesel share in the new IPO (value 50c open) for every 1.75 (approx) shares held at the conversion date.
This makes a JPR share instantly worth between 26.5 - 29c right now, just for the free share issue.
Bio fuel is a hot topic - and the IPO is expected to do well, and possible open well up from the 50c issue price.
The original JPR shell is due to have a new deal backed into it, giving it a new lease of life - and leaving it with a fair value as a stand alone item apart from the bio fuel issue.
Read the ann of July 26th - and bear in mind plenty of deals are in process.
I suspect we'll shortly hear that the deals are underwritten / financed - and the JPRO options may well be underwritten, though they are a good cheap entry in for conversion (must be converted in next 6 weeks approx to get the in specie distribution).
With the new IPO value of 28c per JPR share - and the shell cash and existing deal value of say 15c per share - plus new deals coming, it is very possible that JPR will be trading closer to 40c in the next month.

I may have not explained it all clearly - but do some research and consider hopping on for the ride. A lot of long term investors mean the free float is decreasing rapidly. That usually makes for quick price rises as available shares lessen.

 

[johnmwu3]

Re: JPR - Jupiter Energy Heads up

Hi, Canny, You are quite right !

I watched SP of JPR, it got a big volume last Thur., next target maybe 30c.

 

[johnmwu3]

Hi, Canny,
I reviewed the anno., The IPO to all Jupiter Energy share holders is 80million shares at a price of 50c, which every 1.7-1.8 JPR share can get 1 Jupiter Bio-diesel share at 50c, not free, is that right ?you may check it.
Cheers,
John

 

[canny]

John, in specie means free.
For every approx 1.75 JPR shares held, you will get one free Jupiter Bio Fuel share.
Finance is apparently sorted out and a meaty deal is supposed to be backed into the JPR shell.
It's a great story.

 

[johnmwu3]

Hi,Canny,
Nice to have yours !
I watched this share for almost 4 months, and I just bought it at 20.5c,
It's Bio-diesel project will bring it to a new milestone.
hope it up a lot !
Cheers,
John

 

[imajica]

In terms of process, the Board of Jupiter Energy expects to nominate a record date which
will be the date on which all shareholders of Jupiter Energy will be able to participate in
the in specie distribution. Jupiter Energy shareholders will be allocated at total of 80
million Jupiter Biofuels Limited shares at an implied value of $0.50 per share in
recognition of the pre money value of the biodiesel project, being $40 million. These
shares will be allocated in proportion to the number of Jupiter Energy shares individual
shareholders hold on the record date. The number of Jupiter Biofuels will be calculated
by dividing the number of shares on issue in Jupiter Energy as at the record date (which will depend on the number of Jupiter Energy options exercised prior to the record date)
by 80 million which is the number of shares in Jupiter Biofuels that will be issued in
recognition of the $40 million implied value of the project. The Board believes it is likely
that Jupiter Energy shareholders will receive 1 share in Jupiter Biofuels Limited for every
1.61 to 1.88 shares held in Jupiter Energy as at the record date.



you would have to be insane not to be on this one


even if the heads drop to 15 cents after the record date - you are still looking at least 80% + profit (that's assuming the IPO remains at 50 cents on opening - if it is oversubscribed and bolts to 70-80 cents you could see a gain of at least 100-150% on your overall holding

good luck to all holders - enjoy the ride over the upcoming weeks

we should see a steady rise up until the record date

 

[ALFguy]

Ok, maybe I'm not getting this, but surely if it's an 'almost' forgone conclusion that ppl holding are looking at a fairly nice profit, then why isn't the whole market leaping in to buy?

Forgive my ignorance

 

[imajica]

since the announcement of this offer on July 26th - the share price has risen from around 13 cents to closing this arvo at 20.5 . not huge volume (a few million shares changing hands each day) - it seems that the market as a whole are either: waiting a few weeks in order to buy in closer to the record date or clueless to the impact of this in specie distribution.

even if the JPR share price tanks after the record date - there is still considerable upside.


for informative posts on this company - check out trade4profit's analysis over at sharescene forum

 

[Morgan]

Have to say I'm not getting this entirely either.

http://www.jupiterenergy.com.au/Media/EMN.jpg

Maybe market players are more interested in BEI & MBT at the moment for biofuel exposure?

If biofuel project of JPR is to be "spun off", then surely the value of this project will be removed from what now constitutes JPR after the new company lists?
If JPR currently only has a market capitalisation of $24mill, how can the biofuel project be worth $40mill on its own? Does this suggest after in-specie distribution, original JPR stock will plummet?

Forgive me if I am missing something......

 

[imajica]

although purely speculative at this stage - the JPR share price will definitely fall after the record date - even if the price plummets to only 5cents - with the in specie distribution - you would still be up around 35%

 

[canny]

The Jupiter 'shell' after the bio fuel spin off will certainly not be worthless. They have a remaining cash value - and a new deal waiting to be 'backed in'. This of course, has not been announced to market yet, but those of us that follow the movements of Pet Ventures, have read the writing on the wall when PV got in early.
The recent placement went ot sophisticated investors only, who don't dump their money in places for nothing.
The results for the 'shell' of JPR will probably be announced in dribs and drabs after the spin off - but if you hold, it's likely to be a very pleasant ride!

Also, as I said at the start of the thread, finance is no problem for the spin off. They have everything under control for it looking over subscribed and will likely shoot quickly beyond the 50c buy in.
Of course there will be sceptics - that's why some people can make money and others sit back shaking their heads until it's too late, or they just get a little profit instead of a massive one.
There is risk in any spec stock - this is a marvellous play of the reward being well worth the risk.
Canny (Rakia HC)

 

[ALFguy]

for informative posts on this company - check out trade4profit's analysis over at sharescene forum

There's a lot of talk about 'options' on sharescene and since I don't know anything about options, I just want to clarify - Jupiter Energy shareholders will receive 1 share in Jupiter Biofuels Limited for every 1.61 to 1.88 shares held in Jupiter Energy as at the record date. Meaning normal everyday, run of the mill shares right?

ie, I buy JPR and following the record date, I'm allocated the new Biofuels shares? Simple as that?

Appreciate it's very speculative.

 

[imajica]

that is exactly right I don't really know much about options either - I usually only buy run of the mill shares as well!!!

some calculations

I recently bought 26000 shares = cost about 6 grand

after the record date I'll receive about 14000 (approx) biofuels shares at an implied value of 50 cents= approx 7 grand worth

now, even if the existing JPR shares tank down to say 5 cents (im sure they will probably level off around 15 cents though) the 6k portfolio is still worth:

$7000 - biofuels shares
$1300 - existing JPR shares


total: $8300 (38% profit -worst case scenario)

there u go, even if the existing shares tank beyond belief you are still going to make a healthy profit of 2300 bucks on an initial investment of 6k

now, on the other hand, if the IPO lists at a premium (which is a definite possibility) this will exponentially increase your profit.

 

[imajica]

forgot to mention that although after the record date the shares will be allocated to your trading account - you may have to wait a month or so before it officially lists on the ASX. waiting 4-6weeks is not bad for a min 38% profit

 

[Stinger]

From my understanding, to be eligible for the Biofuel shares you only have to hold the Jupiter shares at record date. Therefore it is possible to sell the Jupiter shares the day following the record date, and still recieve your allocation in Biofuel, therefore hopefully selling your Jupiter shares before they drop too much.

Am i right in thinking this?

 

[imajica]

I'm pretty sure that this is the case - will have to look further into this

One thing I know for sure is that over the next few weeks the share price will rise the closer we get to the record date

 

[ALFguy]

I've been reading the anns but can't see a record date.
Is this something that will be decided during the shareholder meeting?

 

[imajica]

the record date will be determined soon as the prospectus is being lodged at the end of this month. I would say you have at least a couple of weeks before the record date is upon us

should be an interesting ride

 

[canny]

When they tell us the plans for the JPR shell, you might not want to sell out too quickly!!!

 

[imajica]

new prospectus will be issued soon and an announcement will be made about the record date in the next week or so. I can't believe the stock has been sold down to 19 cents - its ridiculous.

all people who currently hold JPR shares - don't worry about day to day fluctuations in price caused by daytraders and weak bastards. hold for a few months, have some nerve and double your money.