This stock looks like the most undervalued oil company on the stock exchange. >
Sefton Resources epic SER. It is currently trading at a price of 0.275p valueing the whole company at just 4M.

You might look at the market cap and assume that this company is just an explorer or a shell, but in fact Sefton is producing over 6000 barrels of oil per month with a monthly revenue of over $300k. It's recent work on it's Tapia oilfield exceeded expectations, meaning the company hit it's 200BOPD target 5 months early, and is now expecting resource and production estimates to be further upgraded. This is before it embarks on a steam-assisted programme early next year which
could see production rates multiplied 2-4 times! It is also looking at drilling further wells on the rich Tapia field in the light of the better than expected results.

So why is it only valued at 4M? The primary reason is lack of awareness of the stock, the sub-1p price puts many people off straight away, and a large overhang.

A year or so ago the company was put in financial dire straits by a
well blowout and had to undertake large discounted placings to get
itself back on track, which it has done with a vengeance. However,
some of these placing shares, which represent some 25% of the company
are being sold into the market, depressing the price so that despite the fact that the companies prospects have improved dramatically over
the past year, the price has dropped by nearly 60%.

This makes the company an absolute bargain at these rock-bottom prices. In 6 months time I expect this to be worth 3-5 times the current price. SERIOUSLY.

There is plenty of research to get your teeth into, the best place to start is the website :

www.seftonresources.com

There are 2 excellent articles on Sefton on the following website by Ian Mclelland (Jan/Feb 2006) - well worth a read to get up to speed on this company and it's prospects:

www.proactiveinvestors.com

Its those bollinger bands again.....big breakout on the upside is coming soon.

a lot of sells so theres still some trying to get out of this one these Volumes should clear them faster ,beter than the nothing we haVe had for months ,is any one puting buy rec on ser from analists or mags.

That's an idea cellby - wonder if there's something in tomorrow's IC? I think subscribers to their website get an early view of the tips?

cellby....never go off on the trades page.....trades over 300,000 shares in SER are delayed in reporting by 1 hour....you never get a true account in this kind of stock by looking at the trades on the trades pages.

I was following the activities this afternoon....the bid price did not get at 0.34 pence so the few million trades at 0.34 pence as well as others at that price are buys. That's how u work it out as to what's a buy or a sell.....rewind back an hour to when the trade originally went through and what the price was then.

SueHelen,

I keep a detailed spreadsheet of trades in this stock and I will be working out the exact (or as near as I can) buys / sells for today later on. I'll report back then with the figures.

The only one I know I can't classify is the 3M T trade at 0.29p.

mjr - when you talk about hood's and bid at .26 what does that all mean?

jameel06

HOODS are one of the market makers on this stock. They have been on the offer (selling stock) for the last 6 months - the overhang. For all this time their bid price was well out of the way at 0.08p or thereabouts. However, today for the first time they moved it right up to 0.26p and remained on the bid most of the day (buying stock)- which is a likely sign that the overhang is finally run out?
We won't know for sure for a while - it might just be MM games, but it was a significant change in trading. Lets see what tomorrow tells us.

jamee106.....for the past 6 months HOOD has been of the offer on Level 2...which means they have been selling stock all the time....they had their pockets full with SER stock....now suddenly for the first time.... today on more than one occassion HOOD were bidding for stock....in that being on the bid on Level 2.

The above gives many traders/investors the view that just maybe now the big overhang has gone and the share price can move up and away.

The activites on Level 2 may explain the big volume today along with expectation that the price will finally start to motor.

sorry mjr...thought u weren't around so filled in ur shoes as to that question. Seems we came up with the same answer.

shit, Im confused with all this... i better just go to reading some text books... Who are market makers? what is the overhang? Where do u go to find out the bid price? What do you mean by buying stock??

Sorry if this getting a pain in the bum, but I would again appreciate you 5 min crash course in the stock market!! That is if you have 5 mins of your valuable time to spare??

I bought ser at .28 and its gone up by nearly 16% today... Whats your view about topping up with more, or will the sp go down 2morrow - based on its inconsistent behaviour over the last 3 months??

Sue Helen, my sincere apologies for tormenting you with pain staking simple questions..

What is HOOD? And how do find out what is level 2

The market makers are who you buy shares from and sell shares to when you trade.

An overhang is a holding of shares which the holders want to sell which is so large that they have to drip-feed it into the market over a long period of time. This obviously has the effect of depressing the price.

The bid/offer prices of each market maker are shown on the Level 2 screen which you have to pay for (from moneyam for example).

Buying stock means buying stock, like what you did at 0.28!?

Tomorrow's price action - anybody's guess!

HOOD is one of the market makers (Hoodless Brennan) as I've already posted.

Looks like you need to do some reading on the internet jameel - do you know how to use Google?

mjr1234,,,google? well i think I do...

Listen thanks for that insight! I guess were all are not as gifted as some of you... Thanks for your time!

Right Jamee.

HOOD is one of the market makers. Makers makers are people who control the price of particular shares. They are particularly sighted in small caps stocks such as SER. HOOD represents an abbreviation for Hoodless. Hoodless are brokers and market makers of many stocks as well.

There are other market makers as well in SER. These are WINS who are Winterfloods, KBC who are KBC Peel Hunt, SEYP who are Seymour Pierce, SHORE who are Shore Capital. Each market maker will display their own prices of what they wish to buy stock from you at or at what price they will sell you stock at.

Only HOOD keeps being mentioned because all the investors in SER have been fustrated by this particular market maker. For the past 6 months, they have always stayed on the offer price....in that in front of the other market makers and just not budging. It seemed they had bucket loads to sell. Now as I highlighted earlier their supplies might have run dry now and they are right in front of the queue when it comes to buying stock from the likes of us.

Right, I was posting 2 v 1 and 1 v 1 etc earlier which must have just flabbergasted you. 2 v 1 represents information from level 2.......2 v 1 means that there are 2 market makers bidding for stock...in that wanting to buy stock from you at a particular price and the 1 represents just one market maker willing to sell you stock at a particular price. The higher the number of market makers on the bidding...the more chance of a tick up.....and vice-versa...this can very quickly change though depending on the trades going through.

Level 2 gives you an in depth look at behind the scenes of a particular stock. Once you have worked out how to use Level 2 it will save you a few good pounds when it comes to purchasing or selling a stock. It will allow you to identify when the next tick up or down is coming. Level 2 is a subscription based tool which MoneyAM do provide. I'm an active trader so I get mine free from etrade. This tool may come very handy for you if you really wanna beat the market once you have grasped everything else.

Feel free to drop any other questions about the stock market....and I will try to answer them for you. Not anymore today though if you don't mind....but as we go along....and I'll get back to you.

SueHelen- Well, I thank you for that reply. And take your advice with much appreciation and I am obliged!

Ok im slowly getting my thick skull around this game, as I'm a beginner and have only been trading through a mainstream bank (of course suffering additional costs..). although I plan to open an account with a online stockbroker like Hoods Brennan PLC.

SueHelen, could you also direct me other sources of stockmarket info. in orer for me to get that breadth and depth of information.

I look forward to your reply with much interest.

Regards, Jameel

jamee106 .28 is an ok price you should see a good rise, these are the lows for this share its come down from .6 but the news is much beter now .i am holding on for much higher than low .3s i was today looking for another block of shares just for buy and sell on the ups and downs.if you think you can sell high and get back in .28 or lower go for it,but you realy need to be dealing on line.if not hold on tight until you get a good wedge or something beter comes along.

0.32-0.34 pence.....up 3.13%.....L2 is 1 v 1 with HOOD on the bid and SEYP on the offer.

cellby thanks for that... I going try and follow Sue's notes to give some directions, especially about the LEvel 2 and overhang (info I dont have access to)

From Sue's comments as its 1 v 1 its probably not as attractive as 2 v 1 but then again its proabably enough to say that the overhang is over

True.