In 2013 the real gravity of nepotism applied by Sefton Resources (LON: SER) surfaced, like chairman Mao '' Big Jim Ellerton '' would sit at his desk fuelling his egotistical belief that '' Nobody would ever be smart enough to find out how the mechanics of the company worked '' - I won't speculate too much as the poor guy cannot defend himself as he lies in his Hawaiian Paradisiacal retreat! Not before systematically destroying Sefton's future
We really have to focus on abuse cases on London AIM as it helps us understand the deep rooted barely regulated workshop or incubator the alternative market can be. The rules of engagement are designed to favour those with the brass neck to front out such complex, convoluted companies. Many offer a fair risk/reward where others offer the Jekyll & Hyde experience of investing within the small cap.
I won't say big Jim's a crook but the fact he no longer heads the failing company says it all. Considering he had also been charging for "further advice" through consultancy agreements was incredible. '' Why not leave the windows and doors open whilst the toxic gas outside threatens to further poison '' Err distract '' the company.
This year we have seen six equity draw downs of which each shows a growing desperation to get there hands on whatever pittance they can. The reason for this is the Bank (Of the West) needs the interest paying on there heavily weighted debt of which the Bank has every right to exercise. Unless changes are made quickly, resulting in a complete overhaul I'd say the end is nigh as the B.O.W pull the strings which in turn will pull down the shutters. No more Sefton Resources.
It's staggering to myself and many commentators that some Private Investors remain insistent in even considering '' let alone holding '' Sefton Resources '' Unless there's a white knight riding to the resuce with $4.7 million dollars then the company is toast. There is no white knight daft enough to throw $4.7million dollars at the Tapia field that costs $5 dollars to make $3 dollars!
Take heed of this case and let its gravity ingrain your investors mind: '' Hitler once said if you tell a lie big enough and for long enough people will start to believe it '' It's almost to late for many but not late enough to retain some dignity.
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