I do not think you can compare CVI to CVN (except that they share two letters). CVN had a known resource when I first bought in early 2006 and its share price was 5 cents. At the time it had a value per share of some 12 cents I think on the basis of a much lower oil price.
What happended to CVN was that it had a new energetic joint partner. Drilling was commencing. The area was well known to be hghly prospective. The run up in CVN's share price was gradual to about 12 cents. Around April/May? 2007 Fat Prophets came out with a very stong recommendation and placed a value of over 40 cents. FP has strong following, and it was after this that the share price started to take off. Drilling was progressing etc. The rise in CVN's share had a strong basis and it was only as a result of the August 2007 sharemarket plunge that CVN's share price fell to under 14 cents. Since then on positive results from the drilling CVN's share price has risen to about 60 cents.
In comparison CVI is just an interesting spec. It does not have a resource base (other than its cash and tenements) to give it any value. However, people are willing to take a punt, so long as the share price does not go too high. The upper limit on pure punts seems to be about 20 cents. Anything more than this and speculators want some actual resource.
Those that got in early to trade CVI have been in a position to make good profits. Those that got in as longer term investors will only reap a reward if CVI is actually profitable.
loki
CVI Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
