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

These shares have started moving again like hot cakes. Director dealings yesterday show confidence which the city seams to have picked up on.

Yep, should be a lot stronger from now on. And hopefully they will keep these tighter spreads now they've got into the habit.

we were up and running there for a few days thought it could be a brakeout aboVe .35 nearly went back in for more could get chance at the cheaps .25 the doesnt seem to be much confidence aboVe .35 yet.

People will be waiting for the bid to rise (and spread to narrow).
The MM's needed to get some stock back anyway, they sold 5M more than they bought last week, at prices between 0.26-0.35 so the bid was not going to go above this until they've squared their books.

I think there could be another change to buy at 0.32 or slightly under this week, but I reckon the days of 0.27p offer are largely gone now, as there will be huge support as soon as the price gets near what the Director paid (IMO). If it does go that low, it will only be for a millisecond, as they say.

Morning All

With winter future prices already starting to move in our favour, things will be all the better for us when these guys show figures...

Patience will yeild nice % profits at these prices...

666

No visible trades to warrant a drop in price, looks like MM's bluffing again, hoping for another 3M sells at 0.27p or lower.

They'll be bloody lucky! Who in their right mind is going to sell at a loss now?

MJ

I'll give them 0.28... lol

666

MM's know they will get their hand bitten off at anything near the Director's price now. That's why they are keeping the offer high.

Trouble is, they are not getting any sellers. So expect the bid to rise to 0.30 soon.

MJ

Even buying in at 0.35 will yeild a profit of over 20% on this one based on it returning to it's normal trading levels...

Never ceases to amaze me though, folks seem to forget, the key to this game is always 'buy low - sell high' - regardless of your position - long or short... When something as obvious a this share comes up, sitting on the fence and waiting for a move up before you buy will only cost you... Anyone procrastinating should take a fresh look at the company... It's obvious which way it's going over the coming months...

'This shares recent performance is not an indication of the future' lol


DYOR obviously...
666

Unfortunately, the curse of most retail punters, myself included here, is "buy high sell low". This happens when you let emotions - fear and greed control your investing, when it should be a rational detached view of the facts.
Many people suffering from this affliction will only buy when they see the price has risen a certain amount, and they will sell when the price has fallen to a low.

It has taken me many years and thousands in losses to realise how to buy low, sell high. It is one of those things that is definitely easier said than done.

(Done the buy low bit anyway, the sell high part will come in 6-12months+)

LOL, and there goes one now - 250k@0.28p - bye bye!

MJ

This http://www.investopedia.com/university/stocks/stocks7.asp
sums it all up really...

Especially 'The Other Animals on the Farm'

666

Thanks for that link Diablo.

I would say up until recently I was definitely a "pig", but i'd like to think i've become a "bull" with this stock.

MJ

We've all done it...

The most important thing is to 'preserve capital'...

The big mistakes are not cutting losses, chasing news, or over trading...

This one will run... It's just patience that's all...

666

You also have to learn when to NOT cut your losses, and average down instead.
It's all about picking a really good stock, by doing thorough and continuous research, that you know beyond reasonable doubt should return you a good reward commensurate with the perceived "risk" factor.

I have lost out on THOUSANDS of profit by selling stocks at the first downturn, because I hadn't done my research. They would have gone on to give my huge returns if only i'd had the patience and confidence gained through proper research.

This little gem has a reqular production and income from that as well.As you know management has diluted the shares by issuing millions of shares last year and year before.This is the best time for the mangement to buy back as much as they could in order to keep the company in a state investors will love it. With the monthly income and assets sales they could easily buy back the shares in order to reduce dilution(Share price is in a doldrums --they must make use of this opportunity).Once the share price starts moving forward you cannot use this method share price will become volatile due to excess issues in the market.

MJ

Spot on... 'Run your profits - Cut your losses'...

Another thing I see - most people look to be long... shorting, whilst risky, yeilds great returns too...

Ref. Sefton...

Whoever is selling out right now must need the money... Between now and the next results - at current buy prices - their will be ample room for a high % gain... something any 'lurkers' should consider doing research on...

666

Pund

Nice to have someone else come out of the shadows...

666

I'm another lurker. Been building a little stake in SER. Currently 2.5m.

I,m fedup with these games 1.7m traded today lowest for good few days 6% drop we need a bit more news flow or a good drop so can sell some dogs and top up here a few weeks i was happy to buy at .35 but been spoilt by the lows.