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: Gary K. Best who wrote (340)	1/31/1997 3:28:00 PM
From: Buzz Mills	of 1017

Gary, This has to be an excellent buy point. CWEI is now selling at just over 9X estimated earnings. I believe the recent pullback in the oil sector followed by the confusion caused by the "erroneous Paine Webber estimates" has created some uncertainty among CWEI stockholders. I was looking back at the chart and at the end of August CWEI broke the 50 day moving average for 3 or 4 days; this cycle is somewhat similar. I was even wondering if it might have something to do with the fact that CWEI's IPO was at 17; of course that was 3 1/2 years ago, but then again memories last a long time especially with underwriting brokerages. I too notice some apparent manipulation going on; i.e. the MM moving the Bid/Ask up or down without any visible trades to support the move--I see these things and just have to wonder what is really going on. I do know that someone is getting this stock cheap. I have been shaken out of a stock just before a major run-up, and have watched it happen many times since; the price dropping dramatically on very little volume and then within a short time see the stock break upwards to new highs. We know that CWEI's earnings will be down in '97 due to the exploration and I wonder if that is contributing to some holders selling. I decided to play this stock quarter by quarter and right now I know two absolutes: 1) the fourth quarter earnings are going to substantially beat the street estimate. 2) the first quarter '97 earnings will be excellent relative to the first quarter '96 earnings. CWEI earned 0.19 in Q1 '96; estimates I have seen for Q1 '97 average 0.47 and with oil prices remaining high I expect the estimate to go up. Buzz

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