Hi HarryThe article title is 'Penny possibles' and there are a...

Hi Harry

The article title is 'Penny possibles' and there are a bunch of stocks mentioned (about 12 I think) with a small comment about each...so I'll write it up:

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EI is the riskiest stock on the list - thats not a bad effort in a table on spec companies. Thie iron ore explorer listed i May at 20c a share and quickly shot up to 69c. The company has big plans to develop an iron ore industry in central NSW near Cobar. EI is one of a handful of small iron ore companies that have listed recently to take advantage of strong interest in iron ore stocks.

Some commentators call EI the 'Fortescue of the East' - a reckless marketing tag. A big challenge for explorers of ironore is finding the transport to move it. Eastern's projects are at least near rail lines, so it shouldnt have to spend as much on infrastructure. But developing an iron ore mine in NSW will be exceedingly difficult. Also, interest in iron ore is so strong that investors may buy near the top of the market.

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I sent this article to a director at Platsearch (which owns almost 50% of EI) whose reply was:

"Why is developing an iron ore mine in NSW exceedingly difficult? What does he know that I don't?"

Also sent it to my broker (who coined the phrase 'Fortescue of the East'for EI) and he had a good laugh about the 'reckless marketing tag' comment.

The recent selling is simply a result of across the board selling in resource stocks (particularly those that had a strong run such as EI). Given its tiny market cap, selling clearly overdone...but this is one of those stocks that you don't even look at the shareprice with any emotion...you just wait a couple years and hope management can deliver on what they are trying to do. Because if they do, you will look back and laugh at the current shareprice. A bit like Fortescue shareholders are doing right now...at least the ones that didnt panic when it was in the dumps.

Cdchi1