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Chris Oil been swamped by questions about (LSE:SER) Sefton Resources and (LSE:XTR) Xtract Resources after my interview with Justin Waite ADVFN podcast show. So i have tried to put down my personal thoughts on these two companies both i believe are multi baggers because both companies have tiny market caps which enable speculative growth.
Xtract Resources (LSE:XTR) had an important holding rns yesterday stating Revelo Resources confirmed it was out 500m shares to zero which has been holding the stock down. Clearly now is the time to buy with the issue behind it and very good news moving forwards.
On fundermental grounds the company has excellent management history with a Chile gold mine in production ramping up to $17m income and $12m operational profit forecast on the tiny cap of 12m seems vastly undervalued. Remember value in the mining game is made with opening up a mine in profit not discovery as in the oil industry. With peers in the sector on values around £30m to £50m cap, we should all know where this company is going come profitable June RNS that has been quoted on a tv interview mentioning $500,000 profit within two months. Either hold or buy for a giant catalyst. It feels like a mini Ithaca Energy (LSE:IAE) with a greater upside in the short term. Remember risk /reward. Directors RNS also gives positive direction going forwards.
Jan transformed Pan African Resources from a cash shell to a 250,000 oz gold producer a repeat ?
The second company is the speculative high risk very high reward play of Sefton Resources (LSE:SER) on Tuesday ex ceo Dan Levi has excerised his options meaning he has bought them bringing his holding to over 3% in the company i would suggest this is a vote of confidence in the mists of unknown.
Because Sefton Resources is an investment based on the unknown not the overvalued cash shell at present. From speculation in the media new CEO will come in and an asset will be bought that could value the comapny on much higher multipules this could be correct or incorrect. However the point being made based on events something could be in the pipeline and would think the ex CEO excercised his options shows faith in the short term future.
Its not unreasonable to suggest giant upside based on investors demand for the stock based on the last two investor shows and whats happen to other recent past hot stocks for example (LSE:UKOG) events at Horse Hill.
If you hold keep holding if your watching buy on the dips . I declare i do own both stocks above however due to my busy life only had time to post about these two speculative hot stocks today.
Will be on Justin Waite show again this Thursday April 30th talking about both of these hot stocks.
If your interested in advfn they have excellent data and level 2 on companies mentioned well worth registering below.
Until the next tome more ramblings from the castle can be seen @chrisoil
http://www.chrisoil.blogspot.co.uk
