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Gold/Mining/Energy : Clayton Williams Energy (CWEI) OIL
CWEI 131.900.0%Apr 25 5:00 PM EST

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To: Buzz Mills who wrote (582)4/10/1997 10:11:00 AM
From: Steve Wagner   of 1017
 
Buzz,

Thanks for all the fantastic research on CWEI. You have done a great job keeping all of us CWEI investors informed. However, I have to disagree with you on the Zacks rating system being "based purely on the analysts recommendations". They do "report" what brokerage recommendations are for a stock, but they don't just take the average of that to arrive at their rating. It is based on "revisions in analysts' earnings estimates" along with other proprietary factors. In fact, Zacks often has their rating completely different than the brokerage recommendations. For example, the current GreenTree Financial (GNT) report has a Zacks rating of "4" and there are NO brokerage recommendations below a "3".

The following definition is from their site at:

ultra.zacks.com

"The Zacks Performance Rank is based upon a proprietary stock selection model developed by Zacks Investment Research in 1979. The ranking predicts which stocks will outperform or underperform the market averages during the next three months. The 1 to 5 ranking (1=Best expected Performance and 5=Worst expected Performance) is updated weekly, and is derived entirely from a multi-factor model which analyzes the momentum of analysts' estimate revisions."

Steve.
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