Kendell,
I had asked Meredith, via Email, for the information regarding the institutions involved and also that we hoped the people from Prodigy would post on this thread. CWEI has great upside potential--the downside, if any exists at all, is extremely limited. The fundamentals for CWEI are solid--earnings are outstanding. Having seen all of the 10K buys on CWEI this past week tells me there are institutions buying this stock. I just saw a note in the IBD for Forcenergy--it said they expect to earn 0.50 this year, and 0.75 next year, after operating at a loss for two years--the stock is selling at 34+. Not at all unlike CWEI, except that CWEI will earn 1.60 this year, or more. Seeing news articles like that, over and over again makes me realize all that much more how undervalued CWEI is; nevertheless it will take time to climb. It is only my opinion but I think the market is only allowing CWEI to go up only so fast, but it will go up and the inequity in price will disappear as CWEI strings positive quarters together. We know CWEI is going to have an outstanding fourth quarter just based on the price of oil and gas during this quarter. Looking ahead--I can't see CWEI not bettering the '96 first quarter numbers of 0.19 per share in the '97 first quarter. In the first quarter of '96, CWEI received $18.78 for oil and $2.29 for gas, and although oil and gas may not command the prices of $24.47 and $3.43, which they currently enjoy; in the '97 first quarter they will be higher than last year. That coupled with the fact that CWEI will have a third drilling rig operating, which should produce more oil and that will increase earnings.
Buzz |
