chewy on your boot trade4profit, page-16

ironfist...

The problem for those that rely on such things for determining "fair value" is that whilst they may well work on mid and large caps, ie, less volatile stocks, they can be next to useless when used on speculative small caps, which can add tens of millions to their underlying value model with a simple acquisition, discovery...or any number of fundamentally significant corporate events.

As soon as we see someone do such a thing with NPV's, we are instantly aware of their likely background...and just how far out of their depth they are in the speculative market.

I too would like to see a reasoned argument at how he arrives at such a valuation for CVI.

He said they were expensive at 8c and he didn't like them...he is still saying it now...clearly one must at some point feel a revision of their valuing model is in order?

I must say though, there is nothing wrong with using NPV's for ball-park figures, but everyone knows in the small spec market, value is measured by far more than such rigid "bankable" asset values.

What if CVI were to pick up say a concession with an NPV of $100m...will this simply add some 25c to the share price?

What if it had wells with previous production...I touched on this months ago...does our "value" to the share remain at 25c per share?

How do we measure the impact on shareprice between 2,000 or say 20,000 barrels per day production from the very same concession, with the very same NPV value?

What if the quality of management and their specific industry experience could turn a 2,000bbls/d field into a 20,000bbls/d field?

What "value" then?

One mans chewies is another man's boat!

Cheers!