AXE - Archer Materials

[shinobi346]

Archer Exploration is another uranium explorer about to open on the market. Uranium South Australia is providing administration services for them and in return USA holders get priority in applying for AXE shares.

I have noticed on AXE's homepage the priority offer has been oversubscribed and closed within 5 days. This is what what posted:

"Please Note: UraniumSA Limited Shareholders Priority Offer
Just five days after opening its Initial Public Offering (IPO) for a maximum of $7m shares, Archer Exploration Limited today announced that it had closed its Priority Offer to UraniumSA Limited shareholders heavily oversubscribed. USA shareholders had been allocated $1m of stock on a first-come-first-served basis, and the response has been overwhelming. Many applicants requested the maximum shareholder allocation of $25,000.

USA shareholders who were not successful in gaining shares under Archer’s Priority Offer will have their applications considered in the $6m Public Offer, which remains open for subscription. In particular, no shares will be formally allotted in the Priority Offer until the Public Offer closes, so Priority Applicants are urged NOT to contact Archer at this stage. Archer emphasises that no information can be provided at this stage as to whether Priority Applicants have been successful in gaining a Priority allocation.

Response to the $6m Public Offer has also been enthusiastic. The Public Offer is currently planned to remain open until Friday 27th July, but intending applicants are urged to complete their applications as soon as possible. The directors have the right to close the Public Offer early should the shares be fully subscribed before 27th July.

The prospectus is available by clicking on “Prospectus” on this page. Hard copies of the prospectuses are available by contacting Computershare on 1300 738 349 (within Australia)."


Noting that USA priority applications that have missed out will be moved over to the public offer, and that the public offer is still open and allocated on a first come first served basis, there should still be a good chance USA holders that applied will get a share of the company, hopefully.



http://www.archerexploration.com.au/

 

[Ken]

I sent my cheque away. the day it opened.

I rang the broker who was running it to get an allocation. And guess what!

Out of all the shares allocated the clients of the broker that is running the float had pretty said $5million out of $7 million was already raised. The broker was pretty much laughing, saying "yeah mate you got no chance".

This is a similar play to AXT. Thats why I sent my cheque away.

I think they will open 30 cents plus like most of them in the area.

I dont expect to get an allocation. This float will be another example of getting an allocation if your close to the source.

 

[REA]

Hi Ken I also sent my cheque away on the first day and I notice it has been cashed. That means nothing, with my dealings with Origin they were also oversubscribed they cashed the cheque and kept the money for a few weeks and in the end I only got a quarter of my entitlement plus a refund cheque. You have to be in it to have a chance though so good luck.

 

[Ken]

Yes this was also my thinking.

I wanted to sent in for $25,000 but I figured they will be need 520 shareholders on their list, so I sent in $2000 as that was the min.

Experience tells me that with these sorts of floats in the area they will be drilling, they tend to open well.

As they always refer to MOX drill results etc.

Will see how it all goes.

 

[shinobi346]

I hope not. I missed out when USA was launched because it took a long time for that priority prospectus to be sent out to me. many MTN investors on this board at that time complained of the same thing so when I got the sticker for AXE nice and early I was pretty happy that at least that wasnt happening again.


I hope theres still a chance. My logic goes like this:

All priority applications for AXE would have been received by now.

All AXE priority applications that missed out have been transferred to the public offer. as per the announcement on the webpage

Since the public offer is still open and hasnt closed yet I'm assuming it hasnt been oversubscribed yet.

the public offer opened later and ends later than the priority offer so forms for the public offer would have been sent later.

having likely been sent in before most public offer applications, the priority applications should still be allocated first and all get allocated.

This is all assuming all forms have been processed so far and the information on their site is up to date.

will be interesting to see how it goes. I too think this one will rise upon opening like other u ipos before it.

 

[Ken]

http://www.archerexploration.com.au/pdf/070725_MediaRelease.pdf

Heavily oversubscribed was always going to be the case.

They are in West Roxby which is basically olympic damn stomping ground.

AXE will be littered with uranium.

It doesn't stop at a fence line, I'll give you the tip.

I expect my cheque to come back. I sent my cheque off day 1.

I sent several cheques off for AXT and they all came back.

I spoke with the broker running the ship, as I stated, and the chances of getting in through the public lotto are not good.

I think we are looking at a 30 % chance of getting in.

 

[shinobi346]

My sister posted her form off on the first day before the public offer opened and she tells me her cheque still hasn't been cashed. Which is strange because I wouldnt thought AXE would want to hold on to the money regardless. the form was sent in my registered post so it was unlikely to have gotten lost.

 

[Ken]

Wouldnt be the worst thing to get the cheque back in todays market conditions...

Few investors might be a little bit tighter on the floats now...

Will be an interesting open after it was over subscribed heavily...

 

[powerkoala]

until today, i haven't received any news whether i got my allocation or not. i apply first day when they send me the priority offer.
not even return cheque or anything.
are they supposed to be listing on 13 august?
anyone received their allocation yet?

 

[YELNATS]

until today, i haven't received any news whether i got my allocation or not. i apply first day when they send me the priority offer.
not even return cheque or anything.
are they supposed to be listing on 13 august?
anyone received their allocation yet?

According to the prospectus:

Expected Allotment Date August 3, 2007
Proposed date of trading Shares on ASX to commence August 14, 2007.

I was a bit late applying for the priority offer but still met the dealine and my cheque was cleared in time.

Will have to sit tight and wait probably a day or two.

regards YN.

 

[Ken]

A lot of people will look to sell on open I suspect.


So there may be an opportunity to get in closer to entry price than first thought.

 

[powerkoala]

A lot of people will look to sell on open I suspect.


So there may be an opportunity to get in closer to entry price than first thought.

no idea about this. but mavusi resources (MAV) just opened at 36c. it listed yesterday when all the shares got bloodshed. let see what happen later.

 

[Ken]

I missed out as expected, looks like another example of mates rates.


Congrats to anyone who got on.

 

[YELNATS]

According to the prospectus:

Expected Allotment Date August 3, 2007
Proposed date of trading Shares on ASX to commence August 14, 2007.

I was a bit late applying for the priority offer but still met the dealine and my cheque was cleared in time.

Will have to sit tight and wait probably a day or two.

regards YN.

My application missed out too.

However, AXE is due to start trading at 11.30am today.

At present there are 2 buy quotes above 50c and 7 at or below 20c the par value!!!

Strange???

Will be interesting to see how it goes today and whether it may be at an attractive buy price in the days and weeks ahead.

regards YN.

 

[surfingman]

Is anyone buying in today that missed out on offer? I just brought a small parcel @ .16 see how they go... seems like a bit of a low demand today which is a concern.

 

[surfingman]

AXE is showing up Axiom Energy Limited in Etrade whats doing there? Axiom is a bio-diesel company very weird....

 

[YELNATS]

Is anyone buying in today that missed out on offer? I just brought a small parcel @ .16 see how they go... seems like a bit of a low demand today which is a concern.

Glad I missed out on the application. A bit of a fizzer. Those that got their allocation must be disapppointed. Could be a good entry point at 16-17c though.

 

[Ken]

I think they were unlucky.

To open the day they did.

If they had have listed the week before no doubt it would have opened well above issue price.

But speculative money has left the market a little bit.

When everything cools off.

AXE may just come up to the same value of its peers.

With the way the share is set up they have great leverage to success.

35 million shares on issue.

Once investors who just wanted the stag disappear, watch the sell side dry up, and it will be a hard stock to get a hold of just like your AXT, VMS, etc.

Any good news in the area an nearolgy for AXE should give it some momentum leading into drilling.

I have no doubt that holding onto AXE for 12 months will give an opportunity to sell above 20 cents.

So theres at least 20% to be made in my opinion.

Just have to be patient.

I wouldnt say load up, but there will be some good news out of South Australia with all the drilling going on.

 

[Ken]

AXE, SRZ, CRJ, VMS, USA, TOE

All some very unloved exploration companies.

They are South Australia copper belt.

Seems to have lost its shine.

 

[Ken]

Any thoughts on the market depth?

The sellers have dried up big time.

If we close above 17 cents, we would be at an all time closing high.

What does this mean considering the stock floated at 20 cents?

I anticipate some more positive news considering the amount of drilling going on in the area. Nearolgy could be back in business with the market on the move again.

Disclosure I hold.

Roxby West is Olympic dam territory.