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.