The colour of money.

Just returned from the AGM.

Again we were greeted by a table filled with decades of experience, headed up by none other than the man himself: Adrian Cook. Looking resplendent in a tie 'the colour of money', Adrian gave a thorough presentation and then met with shareholders for coffee, after the meeting had finished.

In no particular order, I noted the following:

* 2017 is NOT going to be the "sleeper" year that some may have thought.
* The main catalyst for PS2 is the gas at the exploration section at the very bottom of the drill.
* Chance of success here at the bottom, is 50/50.....yes, 50/50!
* Dorado is absolutely enormous and early discussions with Quadrant, suggest a drill in 2017.
* Adrian is of the opinion, that we have seen the bottom in the oil price.
* In the last 2 years, there has been a 49% drop in industry activity. This is the biggest drop ever and cannot continue. We are using more oil than ever before and with exploration and discovery activity this low, demand is going to outstrip supply very soon. When this happens (Adrian thinks we're seeing the start of this now), oil price will go mental.
* Management is still nervous about the Company being taken over whilst our share price is so low.
* Management all hold a bunch of stock...and so do their families.
* Production would not start for another 6 years, but the clear focus is to sell out before this stage. Reading between the lines, it seems the logical timing for this is once PS2 is firmed up, and after the drilling of Dorado next year.
* Yes, Quadrant is the obvious player to be stalking CVN, but the market is bigger than just one Company and many others are/will be running the ruler over us.
* "Have you received any offers yet?"....response: "No".
From the floor: "But would you say so anyway?"...Adrian smiles and says nothing.
* PS2 will hit final target on Christmas day. Chairman says: "could be a very merry Christmas"
* Quadrant kept CVN after taking out Finder because of our industry experience and expertise.
* Institutions from New York were given the instruction to "sell oil". They have been merciless in their exit of all oil stocks; ours included. There are signs this is finally changing, with funds turning bullish on oil.
* When the Intos do start to buy again, it'll be none of this pissy 100,000 shares at a time. Gloves will come off....and they won't hold back.
* Institutional buy model is 3 tiered and all boxes need to be ticked. Top down it's 1) management and expertise, 2) asset and story, 3) sector. Unfortunately the buy isn't triggered going from top to bottom, but rather, from the bottom up. Institutions LOVE cvn but are still awaiting their buy instruction based on an improving sector. This is not far off and when they pull the trigger, "CVN's share price will instantly double".
* Likely takeover price has now increased to a range of 80c-$1.00 based on current data.
* Adrian loves the Bulldogs

I'm sure others who were there will fill in any gaps, but once again, I came away feeling absolutely certain, that the man with the green tie would eventually show us all, 'the colour of money'.


Gottalove...