This ia from Dave C. The secondary is this week.
C = Current Earnings - EPS of .45 significantly exceeded last years
EPS of a loss of .30 before a $6 million of 1.02 non-recurring gain on the sale of property and equipment. Cash Flow from operations, before changes in working capital,increased to $9.6 million from $5.0
million in 1995.
A = Annual Earnings - Company has already exceeded the mean EPS
estimate of .85 in only three quarters. The company has reported eps of .96 ( .19 in 1st qtr, .32 with a .16 charge in second qtr and .45 in the third qtr ) Cash Flow from operations, before changes in working capital, during the nine months ended 30 Sept 96 increased to 27.0 million from 17.8 million in 95
N = New Product, New Management, New Highs - Company has a not new
oil field called the Cotton Valley Lime Pinnacle Reef Play that could be hugh. Company has hired a new geologist from Marathon to lead
this effort and has recently announced a 3D partnership to conduct 3D shots on 20,000 acreas.
S = Shares Outstanding - More than 95% of the stocks in O'Neils study
of the greatest winners had less than 25 million shares outstanding. CWEI has 7.486 million shares. Company is issuing another 1.25 million shares within the next 2 weeks. Stock has moved up over 30% after the announcement of the additional offering.
L = Leader - CWEI has the highest relative strength rating of .99 and
has a group rating of A.
I = Institutional Ownership - Some institutional ownership is needed.
CWEI has institutional ownership of 38%. Net buying the last qtr of 885,000 shares. Two mutual funds - the Heartland Value and the DFA
U.S. 9-10 Small Company fund have increased their position recently.
M = Market Direction - Up and the Oil and Gas Industry has been one
of the hottest areas. |
