can someone tell me what this means in laymans terms please?

We would like to sell you something you do not understand, and hopefully will be too embarrassed to ask us to explain it to you.  This is handy as we don't quite understand it either, but it sounds quite sophisticated.

I would think it's something that would make money if the world economy recovers and has a limited downside.  Not sure what that would be, probably Pangloss' idea...

thanks goring. it relates to a recommendation to buy partygaming shares.

Chart doesn't look particularly appealing, but bookies stocks are likely to be more 'bondlike' than typical equities I guess.

up 20% yesterday goring. obviously wish i'd have bought now.

All online gambling site shares up following Senate vote on Wed which may permit some online gambling in the US.  PGaming also influenced by proposed merger with BWin.

represents good option value on corporate activity.

It means that there is a chance it could be bought out. 'Corporate activity' just means another company coming in with an offer.

There is minimal chance Partygaming could be bought out - it is the largest online gaming firm in the world. 

It can, however, buy out other smaller firms.  The 'merger' with BWin falls into this category as PGaming will be the larger partner in the new combined business, assuming the deal goes ahead.

I don't know Partygaming at all, so cannot comment on whether the report has any legs or not.

However, it would only make sense to shareholders if the company was being bought - if they were buying smaller companies, it is generally the case that the shares in the target company go up, and the buyer goes down or stays about the same.

Oops, sorry nobby. 

no worries goring. i was only going to buy 1k worth.

goring, i have a lot of exposure to stocks and would feel uneasy having more do you think i could do worse than lending what cash i have spare out on zopa.com. (circa 20k)

Not looked at it in a while.  I know there are some good yields - maybe start small.  I'm looking at things like California municipals etc.

goring, excuse my ignorance but with the above are you essentially lending californian municipals money?  i lent a small amount on zopa last year and got an expected return of 7.8% net, when i went on there the other day the rate had dropped to 6.4%. as its a market i assume there are more lenders than borrowers?

Yes, buying city and county bonds - that sort of thing.  Lending money to small government bodies.  You can get 6,7,8% type of figures on some of the longer-dated bonds.  Aim would be to sell a rally if/when the crunch and fiscal positions improve.

Don't know the make-up on zopa.  Obviously there's the same amount to be borrowed and lent at the current price, there may be more of one or the other in each direction.