Monday, 25 February 2013

Its time to actually think about it

Today I feel compelled to put out this brief message

As we the retail Investors navigate the stock markets daily,weekly,monthly many fellow P.I's find some resolve by sharing research from a fundamental perspective or commenting on a variable depth of technical and historical data so what I'm about to say may seem alarming/far out.

Today a announcement was made by Sefton Resources:

Legal Action

RNS Number : 5809Y
Sefton Resources Inc
25 February 2013
25 February 2013
Sefton Resources, Inc.
("Sefton" or the "Company")
Legal action
Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas announces that legal action has been initiated against Tom Winnifrith and Daniel Levi.
· Legal proceedings have been issued against Tom Winnifrith and Daniel Levi (Broker Man Daniel) for libel in the Queen's Bench Division of the High Court of Justice.
· Complaints have been made against Tom Winnifrith and Daniel Levi to the Financial Services Authority (FSA) regarding apparent breaches of the Financial Services and Markets Act 2000.
· US counsel has been engaged to review comparable actions with US courts and regulatory authorities.
Jim Ellerton, Chairman of the Board said:
"Sefton is accelerating the development of its oil and gas operations both in California and Kansas to create shareholder value. Sefton is not against free speech and people expressing their opinions in the press or on the internet; however, when boundaries of common decency are breached the Company will vigorously pursue anyone and the vehicles they utilize, that seek to illegally damage Sefton."
For further information please visit or contact:
I'm now focusing on the stock market in general with a focus on small cap Oil & Gas as a sector.
How much do we really know? How much of our reasoned opinion and moderate research actually scratches the surface of where our money is invested, Time and time again we see the markets maker rally the share price as numerous exploration and so called production companies come to market from a pre arranged position (i.e equity line) and dump the diluted stock onto the enthusiastic retail investors usually supported by some feeble Rns of bonza rewards in Oil & Gas fields far from home....
The reality is many of these acquisitions are made cheaply and from 2nd and 3rd rate Industry sources with a vast majority presenting very little value for money.
There a sponge for cash and this cash is provided by YOU the private Investor, The guy that sits in the chair speculating is doing so with our money, our money that many invest with the hope to a reward similar to Gkp,Rkh etc.
We always look past the companies that have slowly eroded in front of our very eyes or drop through the black hole and into the abyss never to mentioned again.
The primary focus being the success cases!!!
Which leads me onto the statement from Sefton Resource today...
Are they a down on there luck E&P company doing there best to deliver shareholder value or are they another company not reimbursing any value what so ever to its shareholders?
This is a question you need to ask yourself???
I myself although from a technical point of view see value in San Leon, I don't agree with the CEO paying himself nearly £2m in just over 2yrs.But If the Sp goes up and they prove up what they say and you have a 7.5p entry (Which looks good) then you sing the praise of the Ceo however if your in at 24p then the quacking starts '' Wow that's you problem mate '' or '' You bought at the wrong price '' When reality is the Investors who bought at that level bought into a theory that San Leon would draw down heavily for around £60m and use this to deliver or fast track A,B and C.
The outcome....... ? Well we know as the 7.5p suggests '' Things didn't go to plan and those folk are now at 30% of there investment ''
Fellow investors can blame one another but the reality is that the company did not do as they said....
Again this is the high risk sector we invest and have to accept this BUT the bitter pill to swallow is the huge salaries these people receive for not doing what they say!!!
I have been a big advocate in giving the company chance to do there job, San Leon still have time to reward its shareholders....
Have Ser?
Lets now look at the freedom of speech and the freedom of information
Earlier this week a man stood up in the centre of London and sang a song about a guy who murders his girlfriend in a jealous rage. The lyrics seemed to blame it mainly on the woman. Watching the singer from a nearby spectator stand were the prime minister, the Archbishop of Canterbury and much of the royal family. They rocked or even sang along with the refrain, "Why, why, why, Delilah?" Some of them also waved little Union Jack flags, to endorse this enjoyable little ballad of murder ("I felt the knife in my hand and she laughed no more"). One question this raises is: why did the police not immediately arrest them all – princes, prime minister and archbishop – under section 5 of the Public Order Act?
Don't be absurd, you say. But would it be any more absurd than a student being arrested under section 5 for saying to a mounted policeman: "Excuse me, do you realise your horse is gay?", or the 19-year-old Kyle Little, charged and convicted – though then cleared on appeal – for delivering what was described as a "daft little growl" and a woof at two labradors?

As quoted in the Guardian in June 2012

We can see clear examples of how this is being manipulated to suit the bigger boy picking on the smaller one!

Again question the alleged comments made by the authors  towards a small cap oil company like sefton from the accused?

Then ask how this could correlate to the absurd cases the guardian covered.

''Okay now lets look at your rights to information in the public sector''

If we can by rights of law access this information in the public sector why can't we in the private? After all its our money they have and inevitably its all our risk that is associated with the success or failings of a company.

The Freedom of Information Act gives you the right to ask any public sector organisation for all the recorded information they have on any subject.
Anyone can make a request for information – there are no restrictions on your age, nationality or where you live.

If your request is turned down
Some sensitive information might not be available to members of the public. If this is the case, the organisation must tell you why they have withheld some or all of the information you requested.

Transparency is not such a difficult request is it?
The private sector/Aim listed companies should start to wake up to the rights of the people carrying the financial can... '' After all its not like there making great headway to warrant the break ''

Yes we know these resolutions are past year in year out at the AGM or EGM but usually these formalities are rarely attended by numbers big enough or significant enough to make a difference....

The in house team in many companies reward themselves, If there not trying to defer bonuses in a ploy to hide the value or worse they pay these people who failed us!

Failure is now something that is rewarded regularly weather it be in our social structure, Working culture or within the once 'Great British' infrastructure.

We know that we have a better transparency now with laws helping us mere mortals access sometimes much needed information under the freedom of information act and we also have identified how we need a greater freedom of speech or at least a playing field as mention in the above article. Which brings me again to the alleged claims that have been made by two individuals at the forefront of the retail world and there now soon to be public battle with sefton resources.

I have one question for the 3 parties involved

Daniel Levi
Tom Winnifrith
Sefton Resource (Jim Ellerton)

'' When this is over and the innocence of the investors has been tarnished yet again will you be able to hold up your head and say I did what was morally right and the best for the shareholders of the company ''

(I'd like to add a few sentiments that are not mine or endorsed,written or supported by me, These are opinions from the public forums that the P.i share there thoughts)

The views from Buller a reasoned,respected and often the defender of his investment. I spoke at length with Buller and always liked the guy which is why I use his post as sentiment but feel that there is plenty of posts highlighting the extreme disappointment in SER Board of directors and perhaps a few that are unhappy with BMD and TW.


''In my view the board has lied to us. The main example that is easy to prove is the drilling of the 4 wells which were back in November/December 2011. Several time they refer to drilling on 4 wells have commenced or will be completed in a few weeks time. At the time of writing they knew that they did not have permission to drill the 4th well and by not stating that it is an open faced lie and and I don't care who takes me to court on that one.

I would also claim that the dates given on the Ali report being published were lying against better knowledge. There must be a certain understanding when you run a publicly listed company that the people who run it and publish
information have just a grain of understanding of what they are dealing with. In announcing several time that Ali report is due within weeks they must and should have known better. They will be asked t o provide in court evidence that Ali had told them that the report was reay in weeks which obviously is impossible as we now know what complexities and research would be involved in finalising the report. It will be very interesting to get Ali on the stand and he could get the board into severe difficulties.

The final one I would mention was the announcement of the immediate appointment of the new CFO on April 12th last year. Of course it turned out that this never happened. They had not competed and never did complete negotiations and a contract with this guy and he never tool the job.How could they announce that he had taken the job in that RNS
(again these are not my views but those of shareholders and investors in SER)
My view for the record is this:
More money wasted
More time wasted
Its not adding value (May provide another excuse)
Its not helping
All the best Doc
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1 comment:

  1. Tom Winnifrith here:

    Thanks for the post. I shall hold my head up high. I would add to Buller's comments the issue of the 11/9/2012 RNS re H2 output issued when SER must have known July and August data ( 116 & 97 bopd). Review this and ask on whose side the Angels are?