IPO Win or Lose

[juststuff]

Hi I am new to share trading and A friend said to alway buy shares in upcomming IPO.
I see a few coming up and mining seems to be doing really well and I see Ausminerals will list at 20 cents.
Do you think it should go well being that it is a mining stock.
They seem to have a few people on the board Wayne Wilson is involved with MCC and that is going Great guns ?
Do you think it is worth a buy ?

 

[Trader Paul]

Hi folks,

AUE ... scheduled to list today, according to their prospectus,
so has obviously been delayed .....

happy days

paul



=====

 

[trinity]

Hi I am new to share trading and A friend said to alway buy shares in upcomming IPO.

Hi, I'm relatively new to stock trading myself. IMHO, I don't think IPOs always go up, especially in a volatile market. Look at

https://www.aussiestockforums.com/forums/showthread.php?t=7896

The good and the bad from IPOs...

 

[juststuff]

I just thought that 20 cents would be a low risk.
Also that One of the Directors is also involved with MCC.
I check there Website and it said that the Closing date has been Changed to the 21/12/07.

 

[prawn_86]

I just thought that 20 cents would be a low risk.

I dont want to sound arrogant, but it sounds like you still have a lot to learn. Its good to see you trying to extend your knowledge though.

20c is neither high nor low risk, it all depends on the amount you buy as to how much $ you are risking. Risk is also dependent on the business, management, shareholders etc etc, but certainly not the price of the stock.

Also price is of no real importance. A company can issue 1 billion shares @ 20c for a market cap of $200mill, or 100mil sharwes for a cap of $20 mill. So the price is of no importance really.

I suggest you look through the beginners lounge and do a lot of research before making any rash decisions.

 

[Miner]

If I may add to suggest that some of the sites do publish the IPO score card as in http://www.prospectus.com.au/prospectus/

I agree that 20 cents is not the issue but the amount of investment and risks associated with.
It pays to do some initial home study will make it more profitable for investment. Probably our ASF site book shop offers the same.
BTW I have not seen any authentic site like Huntleys or Eureka to provide any analysis of new IPO.
One thumb rule I have seen if a share IPO is having a green block in investsmart or they have special quota means STAY AWAY to invest your money on that. Not a joke and just any one can analyse their recommendations for special allotment bla bla.

Regards

 

[juststuff]

I see they have just released a Result to the ASX, Look very promising.

AUSMINERALS LIMITED EXPLORATION RESULTS UPDATE

Ausminerals Limited has completed the drilling program commenced in November 2007 and comprising 33 Air Core drill holes at Christmas Well near Randwick to test the area for gold and nickel deposits. The drilling occurred in three separate gravity anomaly areas and detected elevated values of nickel up to 216ppm from the surface to 42 metres.
The air core drill rig was unable to penetrate to the gold target depth of 100 metres because of the exceptionally hard rock intersected at a relatively shallow (25 to 60 metres) depth and this area will be retested with more appropriate equipment in due course.

A gravity survey was also completed late in November 2007 adjacent to two gold prospects at Toorakville and Paul’s Reef. The recent drilling in this area has intersected one metre intervals up to 60 g/t and from 9 metres to 22 metres depth, 13 metres @ 10.3 g/t and from 33 to 47 metres depth, 14 metres @ 2.22 g/t. Further along a southwest geological structure, drilling at Paul’s Reef intersected a high grade gold interval in one of the two holes drilled here from 7 - 12 metres depth, of 5 metres @ 1.84 g/t.

The gravity survey results exhibit some prospective features, which will be the target of further exploration of the southwest geological trend.

 

[juststuff]

I seems by the report to be very good in the Nickel Dept.
Worth a buy.
Yes Or No ?

 

[lazyfish]

I seems by the report to be very good in the Nickel Dept.
Worth a buy.
Yes Or No ?

Um I think 216ppm Nickel is pretty horrible. Also director was given massive amount of shares (25 million, vs 15 million issued through IPO). That said, I think Dr. Allen Trench did some study and concluded that most of the mineral explorations companies went up after float last year.

 

[juststuff]

Thanks for that link http://www.prospectus.com.au/prospectus/
Miner it is great.

 

[Miner]

No worry Juststuff.

 

[Miner]

fOR THOSE INTERESTED I HAVE POSTED TWO EXTRACTS.
FIRST ONE IS FROM EUREKA REPORT RECOMMENDING A GOLD SHARE AS PURE GOLD STOCK. BECAUSE MANY REAONS AND ONE OF THEM IS IT HAS former Lafayette Mining managing director, Andrew McIlwain ETC. Now read on the extract. Once you finish it please read the second extract from Yahoo Finance on the latest about LAF. A company does not become bankrupt one day. The management has a lot to contribute.

""Emmerson Resources is a pure gold float, also in the Northern Territory. More specifically, it is revisiting the once prolific Tennant Creek gold field at a time when gold is trading above $US800 an ounce, and widely tipped to crack the $US1000 mark, even if that rise effectively represents the collapse of the US dollar.

The theory behind Emmerson is new in part, but not entirely. Essentially, the company is the latest to own a swag of gold-rich ground and old mine workings previously controlled by companies such as Peko Wallsend, Normandy and Giants Reef.

What is new is Emmerson’s management team led by former Lafayette Mining managing director, Andrew McIlwain, and former BHP Billiton and WMC executive, Rob Bills. McIlwain and Bills reckon that the application of modern exploration tools, and a search for bigger and deeper ore bodies such as the iron oxide copper gold (IOCG) style material found at South Australia’s giant Olympic Dam mine, will bring fresh life to Tennant Creek.

Emmerson is raising a minimum of $15 million and a maximum of $20 million via an issue of 20 ¢ shares with Bell Potter lead manager. December 17 is set as the listing date.

UPDATE 3-Australia's Lafayette moves to avoid bankruptcy

Tuesday December 18, 2007, 8:17 pm

(Adds analyst comment, more detail)

SYDNEY, Dec 18 (Reuters) - Australia-listed Lafayette Mining (ASX: LAF.ax) entered voluntary administration on Tuesday to avoid bankruptcy and give it time to obtain new capital or to sell its troubled Philippine mining business.Lafayette was the first foreign company to operate a mine in the Philippines after a law granting full foreign ownership of local projects was upheld in 2004.

But cyanide spills in 2005 shut the copper and zinc mine for more than a year, causing huge financial strain and making the Australian owner the poster child for the perils of large-scale mining in a country deeply suspicious of the sector.

The ensuing uproar hampered government plans to attract billions of dollars in foreign investments to the minerals industry but after a period of quiet, big players are testing the waters and Lafayette's financial distress is unlikely to put off the industry's slow revival.

"Mining companies always have lessons learned and cautionary tales and Lafayette always comes up," said Tom Green, executive director of Pacific Strategies and Assessments, a risk consultancy.

"The mining companies are well aware of Lafayette's woes over this thing and what they went through. They were aware of it before they started to come in."

Environmental campaigners, who have kept up the pressure on Lafayette since the spills on the central island of Rapu Rapu, saw the group's financial difficulties as a victory.

"We hope this development will lead to the permanent closure of mining operations in Rapu Rapu," said Clemente Bautista, national coordinator for environmental group Kalikasan-PNE.

But Carlos Dominguez, the chairman of the Lafayette's Philippine operations, said the mine and its 1,000 strong workforce would continue working until the Australia-based administrator told them otherwise.

"We have no plans to shut down the mine. We will stay open for as long as it is profitable," Dominguez told Reuters.

He said the project, 350 km (218 miles) southeast of Manila, was forecast to generate net cash operating income of $52 million on gross revenues of $105 million in its 2007/08 fiscal year.

A bailout plan under consideration by a private equity group, South East Asian Strategic Asset Fund, would have eliminated around A$300 million ($260 million) of Lafayette's debt and bad hedges with the help of a $151 million capital raising.

Late last month, Lafayette said crucial financial support from the private equity group was a possibility. But on Tuesday it said that the level of certainty over the plan had declined, and it had no grounds to continue to hold that view.

Australia-based administrator Ferrier Hodgson has now been appointed to take control of the the company and its property.

The Rapu Rapu mine had been forecast to turn out 10,000 tonnes of copper in concentrate, 14,000 tonnes of zinc in concentrate, 50,000 ounces of gold, and 600,000 ounces of silver annually.

LG International Corp 001120.KS and state-run Korea Resources Corp together hold a 26 percent stake in the mine. (Reporting by James Regan; Additional reporting by Carmel Crimmins in Manila; editing by Jan Dahinten

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