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

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.

Dropping on very low volumes - just MM activity. It's a bullish sign when there is low volume on down days and high volumes on up days.

If they drop the offer / raise the bid tomorrow to narrow the spread, I think we will see a lot more buyers at this level. Can't see many more sellers though other than "the seller" (if he's still around).

looks like a persistent seller there, 3 x 250,0000, niced and spaced out every two hours or so.

Maybe some overhang still remaining?

Could be, but 250k shares is only 750

Don't see why one person would bother to sell 750k in 3 lots.
There was no point during the day when I couldn't get a quote to sell 750k, at a 0.01p or so above the bid price.

Looks more like short-term "traders" (T traders?) who bought in last week hoping to make a fast buck.

I am interested but the spread is so massive there is a big notional loss instantly. That's why I remain on the sidelines.

Coeliac

Wise move at the moment... Wait for narrow or drop...

Cnile

You won't regret it...

All...

Patience must be exercised... Just let the chicks n pigs run...

666

D666

Cheers- eyes are peeled.
O/T are there any views on this stock versus the various Falklands players?

Coeliac

To be honest, regardless of current expectations for this one, if you can get in around 0.3 (buy) when it moves back to normal trading levels of 0.4+ (sell) you can make an easy 30% + gain in the short term...

In reality, even 0.35 is still good value... BUT... the way it's currently trading, it is surely worth watching like a hawk...

Another thing that has helped me was telephoning for a quote... You'd be surprised what price you will get offered sometimes... well below the offer on volume buys or sells...

Sure you know this stuff but:

A good suggestion would be to look at a chart for the past 12 months so you can see it's normal trading levels... With all the expectation around Sefton re: now pumping - awaiting show of profits news - many have jumped on expecting a quick buck or 'news'... Truth is, things don't always work that way.... I'd have thought those getting off the ride are in essence 'chasing the market'... something that should never be done as it can punish you severely if you get it wrong... A thing most newbies learn to the detriment of their capital...

DYOR obviously...

666

D666 -ty again. That large spread could multiply if you bet the wrong way.

Agree on newbies.I am not one but I have a limited repertoir and not really into massive speculations.I trade online and am not sure you get a great deal that way and often have to phone because of the miserable volume limits and I find that frustrating as I see the price move while I am waiting..

Any views on DES,FOGL,RHK or are they off your radar? I reckon rig companies must be doing pretty well!