rang company, page-4

0.545c (11% down) close is surprising and disappointing for holders. Some of it must be end of tax year sorting out & for anyone in for a while (12-18 months) although it's well down from 0.79c it's still a ten-bagger, so some will be opting out, not because they doubt CVN's future, but in the belief there is more immediate upside in other stocks (I am tempted but have held).

It is a more volatile stock than its fundamentals, acreage, new permits, impending increased reserves and quality management warrants but I think it comes from doing so well so quickly.

As EL reminded us a month or so ago the rate of revenue growth for CVN will decrease, at least for a time. By the nature of the agreement with the Thai Govt CVN's % of revenue in this permit declines with greater volume. It is still well worth them recovering more (of course) and in outright terms the more bopd the more revenue but it nonetheless acts as an incentive to develop new acreage in new permits, as with the impending work with Sun Resources (SUR) late 08, & Pearl 09. Then there is work with Rialto (is it?) NW Australia etc.

It traded down like this a few months ago and it will go up again. I am surprised more stocks have not done this today. There is no objective reason why CVN will not be in the 70s again in 4-5 weeks! Good news is more than likely not far away, as other posts said today. Hold or Buy!!