Todd,
Still here, just haven't been on much lately--BTW I still have the same Email address--it works.
Major oils were off today so some are attributing CWEI's fall to that, however a 10% drop in one day is a bit much.
CWEI issued the following: >>>>> We have been talking to the analysts that follow our stock, checking to see if any of the other "players" in the Cotton Valley Trend have released negative news, etc. I've heard that UPRC and Sonat (Cotton Valley players) expect to release some information soon -- but we don't know what.
>
> No one seems to have any explanation for the stock's downward movement. The analysts said there was a possibility that profit-taking that affected the Dow a few days ago could have affected our stock and energy prices have fluctuated. (this was about the last week im June)
>
> Our lead analyst, Greg McMichael of Hanifen Imhoff who has a "Strong Buy" on CWEI, continues to be very bullish on CWEI. We are expecting to see new research from his firm anytime in the next few weeks. They can't give us a specific date because that would be insider information.
>
> To update you -- the 3-D seismic shoot is expected to be completed in late July or late August (that area of Texas has had severe flooding lately --very unusual). Management said they expect to be able to release the results in early November (takes about 3 months to interpret the data). The drilling in the Austin Chalk formation is going well and production is up. There are at least two other projects on-going. Both are on target. I'm sorry I can't be more specific. More information will be forth coming in the 2nd quarter earnings release (planned for late July) and greater detail in the 2nd quarter 10Q (to be file by August 14). If you would like to be added to our mailing list for the Form 10Qs filed quarterly with the Securities Exchange Commission, please email me your address. Also, the Form 10Qs are available within hours of the time we file them on the Internet through EDGAR (www.sec.gov or there is a link from our web page at www.marshill.com/cwei).
>
> Basically there are no fundamental reasons for the stock to be down this low. Most of the CWEI peers are trading at 5 to 7 times their cash flow. CWEI's 1996 cash flow was over $5 per share and is estimated to be at $4.98 for 1997.
>
> The most recent insider buying has been one of a board members, Former Governor Bill Clements who purchased approximately 23,000 share in February. The Company also purchased 70,000 shares in January 1997. The Company can still purchase a few more shares. Also, Mr. Williams takes his salary each month in stock and has for the past two years.<<<<<<
Buzz |
