Jeff,
Thanks for your response. I wnet back and pulled this out of an earlier post regarding the EPS Relative Strength; the EPS number along with the P/E and everything else will go thru a dramatic change with the publication of the 1996 actual earning:
Items that presently affect CWEI negatively are:
In the Investors Business Daily, the EPS Rank for CWEI is only 31
(scaled 1-99 with 99 being the best). The EPS Rank measures a
company'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 0.60 vs. 0.72 and (-1.78); that is $1.05 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% decrease. 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: 0.60 vs. (-1.78)---that should create a rather large number and gain a proportional amount of attention.
That again, is taken from an earlier post and updated with more current information. Another point I would like to make: I would hate to see anyone get shaken out of their position in this stock by any of the recent, or near future, volatility in the stock, or more so in the oil industry in general. It is only my opinion but I believe CWEI will assume it's rightful place, and rightful price, only with the announcement, and publication of the fourth quarter earnings, which will result in all of the above numbers changing. The P/E will go from a negative to a very low P/E, the EPS will markedly move up, and the Quarter Earnings per Share % change will go from a -37 to a +50. In between now, and that time, there are others who would love to have your shares as cheaply as they can get them.
Buzz |
