The company are trading at virtually ten times cash value. Cash in the bank was approx. £1,000,000 while assets were non existent, unless you count a costly agreement to ‘assess a gas asset as an asset!’ The truth of the matter is that CEB have no assets whatsoever there is no asset value to be attached to the company when trying to work out the net asset value (NPV). In actual fact Sefton Resources (LON: SER) are in a far better position cash wise & asset wise. They actually have about the same cash if you unwind the ridiculous UTAS JV and they still have Kansas and several gas pipelines.
CEB are one of the most ramped and pumped up stocks currently trading on the London AIM. The current valuation is ridiculous and as sure as night follows day it will ‘Place’ and crater. The market cap on a fully diluted basis is approx £10 million pounds. For any company to progress to conclude asset deals there’s a whole raft of costly due diligence that has to be embarked upon. That DD is then compounded by introduction fees, consultancy fees to the likes of Dave Whitby’s buddies at Corsair Petroleum. Then there’s licence transfer fees, then on top of that they have to pay for the asset/s, furthermore they have to develop the asset/s. The capital expenditure alone minus the cost of the asset/s would swallow up every last penny and lots more. Now take into account the bloated PLC costs, that is to say what it costs to keep the lights burning at CEB, nomad fees, broker fees x 3 (CEB has 3joint brokers) Director remuneration, listing costs, presentations, Investor relations, expenses etc. To keep the lights on costs approx. £500,000 per year. One can very quickly see that this has all the hallmarks of a cash & grab. A placing is on the way.
I emailed the head honcho CEO Dave Whitby and asked him to either confirm or deny unequivocally that there would be no placing within the next 6 months or the next 3 months. Whitby ignored the emails even though the receipt told me that they had been opened. He ignored them because he couldn’t answer the question without giving the game away.
I can state quite catergorically that CEB are looking to place. My sources state that they want to place before Xmas 2015. The 3 bucket shops are on standby awaiting the green light to go.
CEB have been pumped and dumped over a long period of time by the Whitlow P&D Crew their modus operandi is exactly the same on every stock, WSG, ADSS, UJO, SRES, MSMN, RRR, MXO, NTOG, NCT, PRS, GKP, PXOG, ROSE, SOLG, HNL, BOX, KGLD, to name but seventeen! And who can forget the absolute shocker of the New World Oil & Gas debacle? Which cost traders/investors millions. The sad fact is that there are only a couple of dozen decent stocks on the whole of the London Aim let alone the resource sector! That in itself is the giveaway. Their trick is to befriend the CEO’s, then buy into micro cap companies, they then begin posting and tweeting absolute nonsense about 10p targets or big assets, multibaggers and 10baggers etc. Then they manipulate the CEO to speak on podcasts such as sharepickers or Whitlow’s very own ‘tinny’ soundcloud this is then followed by BBposts and twitter posts pumping up the company. This is exactly how CEB have got to this fantastical valuation. On nothing more than hot air and lies. It is hugely over-valued and like all ‘hot air’ balloons it will quickly deflate. The placing is coming.
I know Corsair Petroleum very well. I met them some months back on other matters and I can tell you now that at the time I spoke to them they did not own any assets in Indonesia. What they are doing is taking fees and expenses from CEB for introductions. The CEB CEO just happens to be a partner in? Corsair Petroleum. The Indo assets that I was introduced to needed $2/$3 million dollars spent on them over a 12 month period to bring production to the princely total of approx. 100bopd. That is a fact.
It’s nice to see Tom Winnifrith coming out exposing CEB in his own inimitable way. I don’t have any time for Winnifrith or shareProphets however when a man is right credit has to be given. The Winnifrith case that “whats going on here is a ramp” is 100% correct. Of course when TW exposed the P&Ders they immediately trolled him. Again this is part of their modus operandi. I myself was tweeted a thinly veiled Death Threat while my photo was tweeted out by Whitlow and his crew. Make no mistake. There’s a massive cash call on the way here and like most grossly inflated companies it’s going to be heavily discounted.
Now unlike others I actually do see some intrinsic value in what I call ‘sentiment stocks’. CEB are a sentiment stock driven by hype but that hype has been massively manipulated. The actual net asset value of CEB is approx. 0.15p. If you add in the sentiment which I see at 100%-150% then CEB should be trading at 0.30p or thereabouts. The moment that sentiment begins to evaporate then the stock is doomed to fall like a stone thrown up into the air. The company know this and if they are business men then they would be failing in their duty to not take advantage of the gross valuation. i.e They will place.