Cuervo Resources Inc CRVNF

The crux of the matter

[jamieb3]

Here in FE's last quarterly we find the whole crux of what is wrong with this stock and this company. "Find's realized natural gas price fell by 33 percent or $3.95 per mcf in the quarter compared to the fourth quarter of 2005. Prices at the AECO storage hub and on the NYMEX market followed suit, declining by 33 percent and 39 percent respectively. The traditional winter heating season began in the fourth quarter of 2005 with storage levels at capacity. The warmest January in history sharply reduced demand for natural gas for heating and prices quickly declined. With gas storage inventories far in excess of historical norms for this part of the year, prices remain weak. The outlook for gas prices is unclear, but signs indicate that prices may have touched bottom." The questions that this information produces are as follows: 1) if you are not going to initiate a hedge in the face of 33-39% declines in gas prices, when are you going to do it? 2) what is the outlook for FE this year in that they are attempting to increase prodcution into the largest storage glut in history 3) why would you even try to call a bottom in a market that you are clearly incapable of predicting? If you had even the slightest ability to judge where gas prices were going FE would not be trading under $9 this morning and your share holders would not be selling your stock with such abandon, and 4) will you eliminate stock-based compensation for your under-performing management team in the face of Find's year-to-date failure to accrue any value to its share holders? A stock buy back would be of far greater value to share holders.

[beckalodeon]

Whoa. I think the way to play FE is to buy when jamieb3 is really grumpy, and to sell when he's effusive. Dude, seriously, you're going to take years off your life with this stuff. If you bought in - what? - 2003, you must be sitting on a huge gain. I chose to sell my entire position into the recent strength, but would look at buying back in on some truly ugly selling (like, down to 5-6

[jamieb3]

Sitting on a huge gain? This stock has done nothing this year. It is trading at about the same price it did in January and the year is about half done. That is under-performance by any measure. I haven't gotten in touch with management but would dearly love to hear their reasoning behind not hedgeing. Their quarterly clearly lays out all the reasons you would initiate a hedge - yet they

[Mexp3]

Patience is the key. I added to my position at $9.65 today. I believe this stock is very cheap. I hope Im right. Plus I dont really care if the company didnt hedge. I want the company to strictly focus on increasing production through drill bit and by acquisition. Which it has done very well. When things look at there bleakest, BUY!