Clayton Williams Energy (CWEI) OIL Message Board

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Gold/Mining/Energy : Clayton Williams Energy (CWEI) OIL

CWEI 131.90

0.0%

Apr 25 5:00 PM EST

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To: Buzz Mills who wrote (45)	11/21/1996 1:41:00 PM
From: Buzz Mills	of 1017

Trading is getting back to normal---as of 1045, only 45K shares--some profit taking and so the stock has pulled back to 14 7/8 X 15 1/8. Time for a little introspection. Items that affect CWEI negatively are: In the Investors Business Daily, the EPS Rank for CWEI is only 30 (scaled 1-99 with 99 being the best). The EPS Rank measures a compny's earnings per share growth in the last 5 years and the stability of that growth. It is calculated by taking the percentage change of the last two quarters earnings vs. the same two quarters a year ago and averaging that with the five year record. This year CWEI earned 0.32 and 0.45 in the second and third quarters; last year CWEI earned (-0.14) and 0.72 in the second and third quarters. The 0.72 in the third quarter last year was a bogus number gotten through the one-time sale of equipment. However it happened, the results are still the same; ends up with 0.77 divided by 0.58 equals only a 29% gain; disregarding the five record record. After the fourth quarter earnings are reported the calculations will be: 0.45 and 0.55 vs. 0.72 and (-1.78); that is $1.00 divided by -$1.02; therefore the EPS Ranking should change dramatically. In addition, the Investors Business Daily shows: Quarter EPS percent change; again CWEI had that bogus 0.72 for last year's third quarter vs. 0.45 for this year's third quarter. 0.45 divided by 0.72 equals a -37. That -37 is in the paper and is very much a detractor to anyone scanning for stocks. After the fourth quarter earnings are released then it will be a bit better: 0.55 vs. (-1.78)---that should create a rather large number and gain a proportional amount of attention. Then having the annual earnings estimate published as 0.85 does not add to the attractiveness of CWEI. That estimate, coupled with the existing fourth quarter estimate of 0.29 will not turn heads. It will be much better when the published estimates become 1.45, and 0.45, respectively. If the Investors Business Daily relents, (I am hopeful) and publishes 1.25 for the annual earnings estimate in the meantime, that would be helpful. Just received an Email from Zack's--said they would correct their errors on CWEI next week. Hoping the announcement of the completion of the secondary offering is soon--CWEI needs momentum. BTW, Natural Gas, after hitting $3.85 this morning, was $3.67 the last time I looked; again this is compared to the $2.62 CWEI received in the third quarter.

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