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

cellby , i agree..i have missed out on thousands and thousands by selling far too early , aht,qxl etc etc
i have 3m of these at .33 ave ,no way am i selling ,
long term this is a no brainer for me
my personal target is 5p(will pay off my mortgage - LOL!)

Looks like the sp will hold @ .5, fingers crossed we'll see some stability at this level.... Nice having filters on, I take it from your comments MJ your not impressed with the two blaggers posting??

I think we'll see a bit of sideways movement or a more gentle uptrend for the next 3 or 4 days, before continuing upwards once again.

News is expected from the company in the next 2 weeks, could potentially be this week, so that could change my prediction.
Also Hardman&Co initial research report is due out in March, they are currently waiting on some figures from SER to complete their computer modelling.

The general rise in the sp would suggest we are at the dawn of good news. I see no reason for any negative reports.

.

Good point, ravey.

Hardly any sellers at 0.5p. Are HOODS running out of gullible clients to coerce?

MJ - Nothing to do with the "hOODS" mate, I think more to do with potential risk.

explosive,

I know the "risk grade" graph is a favourite part of your investment toolkit, but I really don't think that most people even give it a second glance, never mind base their investment decisions on it. It is about as far removed from the fundamentals and prospects of this company as you can get.

It is generated by a computer, based on volatility, distance from moving averages, etc. And as such should be used for reference only, as a very minor section of many many factors used in assessing one's investment. Such a measure is practically meaningless for a small fast-moving stock like SER - use it for FTSE stocks mate but please don't try and use it for penny shares.

Over the last few days HOODS have been phoning their clients and "advising" them to sell (at break-even after 2 years, since HOODS advised them to buy at the same price even though this time the prospects are infinitely better!).
And if you had level2 you would know that they have been the only MM on the offer, peddling this stock which they fleece from their clients at rip-off prices and sell on to the market at a healthy profit for themselves. The 3 MM's on the bid have been keeping out of HOOD's way while supporting the 0.5p bid.

So please don't tell me it has "nothing to do with HOODS".

mjr - i'm intrigued as a new player - what (in laymans terms) are "the hoods" up to? Cheers Tizza

tizza,

Do you mean HOODS aka Hoodless Brennan?

They are a market maker in this stock and also a very cheap broker that offers a virtually free "advisory service". They tend to attract new inexperienced and naive investors, who trust them to give them "advice" and who think they don't need to do their own research.

As such, HOODS has a ready pool of easily persuaded clients to "advise" to buy / sell a particular stock when it suits them.
This week HOODS the "advisory broker" has been "advising" their clients to sell SER, and giving them very poor prices usually below the current bid price, and HOODS the market maker has been selling them on to meet demand in the market.

A very cosy arrangement, i'm sure you'll agree?

Bear in mind that the same "advisory broker" advised them to buy the stock off them 2 years ago when HOODS undertook a large placing (which they paid 0.35p/share for) and then sold these shares onto their clients at prices of up to 0.50p and more (at a very nice profit for themselves), and is now telling these same punters to sell out to them so they can sell them in the market at a higher price! Their latest "research report" on SER is around 2 years old!

I think you can see how these HOODlems operate.

Mjr is absolutely spot on with the hoodless brennan fiasco.

This outfit is totally crooked, they cold call and bombard potential
clients (mugs) with information gained from shareholder registers
that they gain access to by way of a small fee.

If they wasnt a ready made supply of new players to the market who
do not understand they are being ripped off then hoodless would be
out of business.

How they have FSA approval is beyong me.....they are crooked as they come

Thanks guys very informative - as a Compliance Manager in Insurance I can understand how they get away with it!!!

Nice end to the week.

ebb,

Why not switch on your private email message on Moneyam?

There you go, Andy.

MJ - For a rip off company Hoodless Brennan sure have some respectible awards under their belt.

Best Online Broker for Cost 2005 - Investors Chronicle
Runner Up Best Small Cap Stockbroker 2005 - Digital Look
First Runner-Up Best Stockbroker 2005 - What Investment
Best Runner-Up Online Sharedealing Site 2003 - Personal Finance

Also Hoodless Brennan offer share advice to their customers, it's their right to advise (not execution only) however they feel approriate. If this really concerns you then report if to the FSA with any evidence you may have.

Personally I couldn't care less if HOODS advice to their clients is "sell". The same as I couldn't care less if RHPS decided to buy. Either way the sp is holding up and I'm holding my shares long term. I'm sure we'll see many more Hoodless Brennans before getting out of SER.

Finally haven't you noticed that SER @ a risk grade of 650 or below the sp on average climbs.

explosive,

You appear to have a bit of a soft spot for Hoodless Brennan. Are you a client by any chance?

By the way, I really don't think the "risk grade" affects the price of Sefton Resources!
News, sentiment, fundamentals, prospects, buyers, sellers, trend, resistance, support, market makers actions, tips, and coverage affect the price, but not the "risk grade" graph.

Now here's an interesting fact:

Since SER's announcement after close last Tuesday about selling TEG Canada to raise cash to develop their CBM assets, investors have put over 500,000 into this stock in just 8 trading days!

Just a coincidence? I don't think so.

MJ - I'm no client of Hoodless Brennan, I was actully pleased to see that the FSA fined them in 2003 for misleading information if I remember correctly and the subsequent cover up. Scarecrazy.com are there appointed reps are my bet is they are to do with the misconduct you described above.

Riskgrade doesn't directly affect the sp no your right however for me anyway a falling riskgrade does help with confidence along with the other factors above you described. Its clear were not going to agree on this point so lets just move on. We agree SER is a good investment for the long term and currently seam to have the same strategy.