RE: RE: Down 2 cents? Seriously?I'm almost done thinking about CNE as well...
I think Danny's post last night about proveable reserves is part of the reason the SP did not pop. However, even if we look at it from that perspective - i.e. the NR yesterday was just notice that the company is depleting it's reserves 40% faster than it was the day before - the SP isn't taking increased cash flow into condiseration.
What's 4000 bopd worth? A couple hundred thousand a day? A million or so every couple of weeks? That's not chump change for a company like CNE. It's pretty clear that despite tapping into those reserves, the company will be recycling the revenue into it's other projects that will in all likelihood prove far more in terms of retrievable oil.
I still think there's something more at work here - what and why - I don't know. In all fairness the SP should have easily gone up 10% on yesterday's news (it's net production afterall, and it is by far the best well in RH). Yet, here we are on D+1 and we're back to where we were the day before this news broke - go figure.
I'm done until the K2 results are released. My gut tells me not to expect much since it'll probably just be flow rates, and not an analysis on what's in the reservoir...
I'm not trying to sound negative, I'm up 400% on my initial investment, 300% on my second, 200% on my third, and a few pennies on my latest CNE purchase from last week...all in all this company's been very good to my portfolio - I just wish there was an easier way to read the market's direction on this thing. Good things are certain to come, but I guess patience and ignorance are key to that waiting period.
Cheers!