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Gold/Mining/Energy : AAA STOCKS THAT SHOULD DOUBLE IN A MONTH!!!

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To: HASSAN MAYANLOO who wrote (30)	11/17/1996 12:34:00 PM
From: Buzz Mills	of 106

Double over the next three months Clayton Williams Energy (CWEI) 13 5/8 will move up into the mid 20's over the next three months. First Call, used by Investors Business Daily (IBD), has earnings estimates for the year at 0.85. CWEI has already earned 0.96 through the first three quarters and will have very good earnings this fourth quarter. First Call also has an earnings estimate of 0.29 for the fourth quarter; look at the table below to get your own estimate. First Call will receive updated estimates within three weeks. Oil Price Sold Gas Price Sold CWEI earnings 1996 First Quarter $18.78 480K $2.29 1472K 0.19 1996 Second Quarter $19.38 598K $2.53 1354K 0.32* 1996 Third Quarter $21.12 521K $2.62 1367K 0.45 1996 October $24.75 ? $2.70 ? 1996 Today $24.17 ? $2.90 ? The above numbers give one a warm feeling the fourth quarter numbers will be good. Hanifen has an estimate of 0.42, Hanifen estimated 0.36 for the third quarter and CWEI beat that estimate by 25% (0.45). CWEI has bettered every estimate by 25%, or more, each quarter this year. The above numbers strongly suggest that CWEI will come in well over the estimate. The fourth quarter will change the past years earnings from what is now (-0.82) to a positive $1.40 or better, and go from a negative P/E to a P/E of 10 at todays stock price: 13 5/8. The stock of the average oil producing company sells for 27 X EPS. 27 X $1.40 = $37.80 Is CWEI underpriced at 13 5/8??? The average for the industry is also 7.6 X Cash Flow and CWEI's CFPS should approach $5.00 for 1996. * actual earnings were 0.48 but took a 0.16 charge against. For more information go to the Clayton Williams site: Subject 9396

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