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Gold/Mining/Energy : Clayton Williams Energy (CWEI) OIL
CWEI 131.900.0%Apr 25 5:00 PM EST

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To: Buzz Mills who wrote (115)12/5/1996 9:20:00 AM
From: Kendell Phillips   of 1017
 
The new intro page looks great!

I did an interesting analysis.

In order of Capitilization take the first 50 small capitalized Independent Oils, which range from $200 millon to $62 millon market capitalization(this range put CWEI right in the middle), average the PEs from the ones which are making money like CWEI. You get a PE of 35. What lead me to do this? I had noticed several companies with less revenues and lower earnings with very high PEs. This confirms how undervalued CWEI is currently and the potential for price increase once CWEI gets more attention. Along with the potential CWEI has in revenue increases with the Cotton Valley play in FY97 and with oil prices well above $20 (remember CWEI was making money at $19/BBL and $2.25 Natural Gas) we should see significant increases in this stock in the near and far term.
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