JNR Resources Inc JNRRF

RE: Time to load up.

[swmoore]

You post stated that you bought some shares at $1.52 the other day.  I'm guessing that you meant $0.52, and I was just giving you are hard time...  well, just for fun.  As far as selling you some shares down the road, probably not.  I'm pretty sure this stock is not going to be $1.80 next week.

As I'm sure everybody knows, JNN is an area play with great management, but terrible PR.  They have an aggressive drill program, combined with their great land position to give them a much greater chance of hitting high grade.  For this stock to move the way you are describing we will need a fantastic intercept like Hathor's HG for the market to bat an eye.

One minor disadvantage for JNN, in my opinion, is the higher than average shares outstanding in relation to its peers.  Although not entirely the same animals, most other companies in the area have roughly half the shares outstanding, but relatively the same SP or slightly lower as well as in relation to cash position.  Off the top of my head I'm not sure what JNN's NAV is but with 80 million SO/ $40 million MC and $13 million cash I think it may be possible for the share price to drift lower, especially if positive NR does not arrive expediently.

I'm not trying to bash, just telling it how I see it.  Prices at this level look good, but there's no reason why it can't shed another 10% in the short term.  Best just to buy some at this level.  Might as well just buy some of all the good companies in the AB at these levels as far as I'm concerned.  You'll probably have to wait awhile, just make sure your picks have the cash.