CAVU Resources Inc (CAVR)

[dmbao]

I still don't know what to think about todays PR. There is obviously some major disconnect here but I don't know what it is. I can only assume its inability to raise capital.

Just as the Advisory Board has brought structure and order to CAVU's business, likewise the Advisory Expense Committee aims to oversee the expense side of CAVU's business, especially important as CAVU is expecting much improved revenues in the 4th quarter, 2014 and beyond," stated Chairman of the advisory committee Mark McLaughlin.

So In the end of September they have high expectations only to see a month and half later they stop all production for technical problems.

Are these the same technical problems that caused the 3 wells to take from May
http://ih.advfn.com/p.php?pid=nmona&article=57784690
to July to actually get going?
http://ih.advfn.com/p.php?pid=nmona&article=58567122

and never really got going until September was it?

Then there is this beauty talking about how things are going on November 25th

Date of Report: November 25, 2013
CAVU resources, Inc., (the “Company”) discloses the following supplemental
information:
CAVU Resources Two, LP, Chisholm Lease – The Chisholm B-2 and Nabors 1 wells are
both producing, with work being completed on the natural gas distribution system to
allow the production to be increased and create an additional revenue stream. The
production pump for the B1 is being tested and will schedule installation in the next two
weeks. Unfortunately, the B-3 well cannot be utilized due to significant below ground
damage to the well and was recently plugged. Based on information compiled during the
work-over process on the B-3, the company plans to move forward on a capital raise to
drill a new well in the same location.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95913802

Only for production to stop what the next day and take 4 month more to solve "technical issues"

Each time you here excuses the weather this and that.

Add to that this

Based on information compiled during the
work-over process on the B-3, the company plans to move forward on a capital raise to
drill a new well in the same location.

also in November and no such update or a any mention of this new well 4 months later?

So they certainly aren't getting much done here on the Chisholm Lease

Brown Lease

There seemingly is some progress on the Brown Lease with 5 wells operating that we own 50% of. However those wells look trivial at best from a production point of view?

5 Phase I wells currently producing gas at 30 to 40 MCF per day certainly isn't much to get excited about.

More wells are to be coming on line at some point while I may be wrong they might be able to get 12-60bbls a day from the entire project which once again is only half owned by us. Trivial.

FILO SWDW #1, LP Seems that no progress has been made here either. Need to raise some money and first well was a failure?

St. Louis Lease Same story no money yet to do anything.

Hog Shooter Lease Sold it for something? Have to see the financials.

Envirotek/Energy Revenue America, Inc. Note Not sure what is going on here. I may have misunderstood this. It seemed like we owned a pipeline sold it for several million and never got paid. There has to be more to it as you would just repossess it in lieu of payment? This isn't happening so have to assume it really isn't worth anything to us and would cost money to take back? Other wise why haven't we repossessed the asset? And tried to resell it use , do something with it?

So with all this news its pretty clear to know understand the stock behavior over the past 6 months. It will be of some interest to see the financials due soon (most likely late filed as typical here although with so little going on it hard to understand why that would be the case?)

Where does this go from here. It might bounce of the bottom but I can't see any real run yet with what we know. We are essentially back to where we were in September with a three wells and some plans that seemingly can't be financed as these plans were mostly already known.

Any positives? A few, they aren't dead yet which is good, the insiders A and B shareholders have canceled the $10.00 liquidation feature. That was never going to happen anyways but certainly gets rid of another red flag. I think the conversion of old debt to Partnership interests is old news but hard to tell with the disclosure here. Just dilution of a different kind and further reduces our revenues from the only real producing asset but also eliminates the debt?

Once again getting rid of the B preferred so we only have A is cleaner ad when the next financials come out I may bother trying to understand what the true capital structure here is to determine our real market cap?

In the end it looks like we are better of than a year ago as we do now have some production but I don't see anything that is a catalyst for a much higher stock price any time soon? Considering their track record over the past year I have trouble expecting much from these management but with revenue and capital raises there could be some growth.

I certainly got this very wrong. I thought they would accomplish far more. I don't see any real light at the end of the tunnel short term but will give them some more time. See no reason to add at this time.