On August 6, 1996 Rodman & Renshaw initiated coverage on CWEI with a Buy, estimating earnings at $1.00 for 1996 and CFPS at $4.35.
On August 13, 1996 Hanifen & Imhoff came out with a "Buy", estimating earnings at $1.37 for 1996 and CFPS at $4.72.
After the first three quarters earnings are at 0.96, with 0.45 in the third quarter; CFPS is at $3.55 with $1.25 in the third quarter.
When the above estimates were done, oil was selling at just under $20 per barrel. CWEI averaged $19.76 for the oil they sold in the first three quarters of 1996. CWEI averaged $21.19 for the oil they sold in the third quarter. The price of oil averaged $24.50 per barrel during October and is presently at $23.59.
The average Independent Oil Producer stock sells for 7.6xCFPS or somewhere around 27xEPS. If CWEI earns $1.50 in 1996, or close to it, and the CFPS came in at $5.00, or close to it, CWEI stock would be selling at 2.7xCFPS and 9.0xEPS. I am not saying that CWEI is an average oil producer but the above are offered as general guidelines.
Before the offering of 1.25M shares, there were 7.58M shares of stock issued, of which 51% was owned by management. That left a float of 3.6M shares on the open market, and a good percentage of these are owned by institutions. Having a relatively small number of shares remaining available for trading, it doesn't take much volume to move this stock up, or down, whatever the case may be. |
