Welcome to ASX Stag Party!

Wondering what the hell I am talking about?
ASX Stag Party is a website dedicated to reviewing and recommending new stocks as they list on the Australian Stock Exchange (ASX). A great many of these stocks are lemons, so a great deal of critical thinking will be applied to find the cherries.

Why stag party? Well stag profits refers to the profits that you can make on new listings, often referred to as Initial Public Offerings or simply as 'IPOs'. Party refers to the celebrations that you will be invited to if you have shares in one of our winning stocks. Sorry, we don't celebrate losses.

I hope you like the site.
New upcoming IPOs on the ASX

IPO Name Code Planned Listing Date
1. Argent Minerals Limited (ARD) 3 April 2008
2. Chrysalis Resources Ltd (CYS) 18 April 2008
3. Eastern Iron Limited (EFE) 21 May 2008
4. Gemstar Diamonds Ltd (GEM) 12 May 2008
5. Handini Resources Ltd (HDI) 28 April 2008
6. Mallee Gold Corporation (MLC) To Be Announced
7. Queensland Mining Corp (QMN) To Be Announced

Warranties & Disclaimer

The information presented here is offered in good faith however no warranty can be made as to its accuracy or its completeness. The information is not intended to constitute a basis for your decision making, thus you should seek independent third party advice as well as consult the original prospectus documentation before investing.
The author does engage in considerable speculation as to the circumstances and events which may or may not pertain to the subject matter in hand. This speculation is done in the interests of public knowledge. Please make your own investigations to establish the veracity of the information. You have a right to know the facts. My intent is to open doors, not to slam them in people's faces. Ask questions, not defame characters.

Mining Stock Fundamentals - Buy this report!

You probably noticed that gold, oil and food commodities are taking off right now! You might also be pondering why gold specs have so far failed to perform, and where you should place your hard-earned cash given that we are just about to enter a protracted period of ruinous inflation. Just as we experienced in the 1970s, we are in for a sustained bull market in gold stocks. There are no better markets to buy gold stocks than Australia and Canada. American investors too can easily get a piece of the action – both in their own country, in Canada and Australia. Who wants to be holding USD now! I have been investing in spec mining stocks for over 25 years, and now I reveal all the pertinent factors you need to consider when buying stocks, particularly gold stocks. The spec market has been sold off of late as risk-weighted liquidity was withdrawn from the market. Get ready because those funds are coming back, and with so few gold producers in the market, you must be thinking - That’s a recipe for excitement in the gold market! You can apply this information to your existing stock portfolio or any new stocks you consider in future. It wont just make you money, it will save you a great deal as well.

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Wednesday, April 16, 2008

Energy and Minerals Australia Limited (EMA.ASX)

Energy and Minerals Australia Limited (EMA.ASX) is a new uranium listing planning to raise $5mil through the issue of 12.5 million 40c shares. The offer closes 2nd May 2008 and the scheduled listing date is 23rd May 2008. You can download the prospectus from www.eama.com.au. The company is exploring the Mulga Rock deposits, previously explored for uranium by a Japanese company, though EMA will also investigate reported cobalt, nickel presence. It should be acknowledged that the principals of the company acquired this project in 2000, and now its become the basis of a listing. It might be pertinent therefore to know whether the company has performed any exploration on the project in accordance with the minimum expenditure requirements of the WA State Legislation. Why? Because if they haven't then the assets dont look too valuable.
I am actually surprised that this company is able to list given the dubious claim it has on the tenements under consideration. I dont doubt the WA Dept of Minerals will validate the sellers title to the area, if only because the title is being offered to the public. In a sense I think the public is being used to validate the title of the vendor. Thats a sorry state of financial regulation. a significant conflict of interest. The vendors could argue the title was always intended for living, in which case it seems they were not sincere in their contract with the WA governmet to meet the minimum standards of exploration expenditure.
Anyway thats my independent opinion - and no one is paying me. As far as the Mulga Rock deposits are concerned, they may as well be called the 'Mulga What?' deposits because I see no compelling value within the immediate vicinity of the Ambassador and Emperor deposits. Why? Well 0.2 metre mineralised intervals spell consistently poor results. So much for a 'trophy' project. So where is the value in this listing. I can't find anything. Certainly the surrounding area has exploration potential, particularly for sandstone-hosted deposits, but its not something I would pay much for. So the next question is - what are shareholders paying for this opportunity? What is the vendor consideration? The Japanese department spent $11.77mil in this project area - as only a Japanese bureaucrat could do. Dont take this as a sign of value. In Japan they build soccer stadiums that can't even cover their operating costs. I am also inclined to dismiss this company because its exploration will end up being grassroots. There are much better buys.
Finally got to the vendor consideration for the listing - on that point the company sponsors are very reasonable. They are valuing their equity at cash value. I would still not be interested in this company as it just doesn't have compelling, tangible upside. Low quality potential in fact.
Andrew Sheldon www.sheldonthinks.com

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