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 (263)	1/6/1997 1:50:00 AM
From: Buzz Mills	of 1017

Caught this on the SGA Whisper Stock Recommendations coming out for Monday After reading it I realized that this is what I wrote about CWEI two months ago and mailed out to a bunch of newsletters I found on the WEB--SGA must have been one of them. I have now been published. I have put correct numbers in parentheses. Anyway the additional advertising can't hurt although some of the news is now a little stale and outdated: CLAYTON WILLIAMS ENERGY : (CWEI) $18 3/4 Up 1/4 and traded on the NASDAQ Stock Exchange.... Even though this stock has recently broken out to all time highs, it is still undervalued when compared to its piers. SGA first told you about Clayton Williams Energy on November 20 at a share price of $15 1/4. By comparing Barrett Energy's numbers to those of Clayton Williams Energy, SGA truly believes that we have a stock which is headed to the mid $20's. Long term subscribers to SGA know that Barrett Resources was first recommended at a share price of $9. Barrett's most recent quarterly numbers were earnings of $.22 cents and cash flow of $.73 cents, which brought the nine month figures to earnings of $.62 cents and cash flow of $2.08. Assuming that Barrett comes in with an improvement to fourth quarter ... CONTINUED >>>CONTINUED FROM PAGE #4 : numbers of 20%, this would give Barrett earnings for the twelve months of $.88 cents per share and cash flow for the twelve months of $2.96 per share. The average Oil Producers sell at 27 x EPS, or at 7.6 x CFPS. Last year, CWEI operated at a loss, but the company has had three very good quarters in a row and should have a very good fourth quarter just like all the other energy issues due to the higher price of natural gas. An anticipated good fourth quarter for Clayton Williams Energy will take the company from having a negative P/E to having a P/E of only 12.5 at Friday's close of $18 3/4. Presently, Investors Business Daily has the estimates for the quarter at 0.29 (0.57) and for the year at 0.85 (1.65). New estimates should bring the consensus for the quarter to 0.45 (0.57) and for the year to 1.45 (1.65). 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 fourth quarter will change the past year's earnings from what is now (-0.82) to a positive $1.50 (1.60)or better, and go from a negative P/E to a P/E of 12.5 (11.75) with a stock priced at $18 3/4. Zack's and First Call have recently received a single earnings estimate of $1.53 for the year from one source. CWEI's cash flow through the first three quarters was $3.55. There's only 8.9M shares outstanding which probably explains why this stock does not yet command the respect of its pier group. The stock is now up 23% since our initial listing back in late November and our near term price objective still is projected for the mid $20's. The company's number is (915) 682-6324.

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