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

Hi explosive,

The management have told a few other shareholders directly that there WILL be an announcement early-mid March.

I also would love to be able to top-up again at 0.27-0.30 levels, but unfortunately those prices were the product of an artificial market caused by the overhang which it now seems apparent has lost it's effect. So I can't see those levels being available again now - that chance has passed. Below 0.40 is now the best we can hope for, and even that might change very soon. The MM's know that the support is so strong now, that if they were to narrow the spread by dropping the offer to just above the bid price, they would get their hand bitten off. It also wouldn't suprise me if they knew the rough timing of announcements etc, so in the meantime it suits them to keep the spread wide with the offer as high as possible, while hoping to shake out bored holders or T-traders, as they ARE short of stock.

Mjr1234,

The spread of 22% or so is ludicrous!

If they made it more reasonable, a few more people may buy in.

Hi Andy,

The spread at the moment appears designed to put people off, because as you say, that's what it does, to both sellers and buyers.
The trick with this one, as with all big spreads, is to time your purchases so as to try and pick up shares on the occasions when the spread becomes lowered. Also very often you will find it's possible to buy well within the spread eg by phoning your broker. We have seen buys go through at 0.42 in the last few days - just above mid-price.
Anyway, i'm sure you know all this and are just playing "devil's advocate" again.

Hello Sefton hows your day,
Hope it's going in the right way?
How about reports and some news,
that Market makers won't confuse.
Share price, we could talk,
graphs of production we could draw.
How about it, what do you think?
(Ending statement with a wink).

I was joking with the 10p a share line. 1 - 1.5p sounds like a reasonable target. I'd be tempted to sell at around 1.5p.

Pitiful volume again today - a result of the MM's actions and positioning.

Proactive report due out tomorrow..? may hopefully help to break this stalemate.

yer right, what a load of crap

My monies on the final results 2005 before we see any change. A fall in the markets to me indicates a good jump is in toe on release of the results weather MM orientated or not..

EXPOSIVE,
WOW what a poster, more profit from the prophet!!!!!!

Hi explosive,

Hopefully we have several potential "price-moving events" to come before the finals. Volume has tapered off due to the wide spread, but this has only happened in the LAST 3 TRADING DAYS. It does not mean we are going to lie dormant at this sort of level for the next 3 MONTHS!

Evening MJ - Time will tell, only thing I can be certain of is still holding all my shares....

Has the spread not shortened tonight? Is now the time to jump in?

Tizzamark1 - Have you read through posts on this thread? If not then this share isn't for you.

explosive - have been researching for a couple of weeks now. See SER as moving out of debt to cash rich having increased output but not sure what the future really holds. Last few days the spread has been about 25% - what am I missing exp?

Hi tizzamark,

The market closes at 4:30pm.
Therefore the spread is the same tonight as it was today.

I'm going to stick my neck out here.

I think this will be around double the current price in a month's time.

oh another prediction that wont come to fruitition eh Mrj, thought you said there was news today...

so where is it

I bet you 20,000 that this will be around double the current price in a month's time. Up for it?

mrj, i hope you are right, but the current sp is down slightly today so is that double the current sp or double the opening sp? obviously the former will be easier to get to.[said in jest i dont have 20k to play with!! i am only a tiddler learning to play with the sharks]

I reckon it will be between 0.65p and 0.8p