John,
I don't think CWEI should be trading at this price but it is beginning to appear as if oil needs to stop falling in price, we need a noteworthy news release out of CWEI, or an upgrade from a brokerage. I pulled the following out of one of Lajuanda Holder's reponses to a fellow CWEI investor on AOL (he mailed it to me, it is from a few days ago):
>>>> No "new" news yet. I can't release any information or hints, etc. about production. The third rig is operating in the Austin Chalk. Still waiting for news about the 3-D Seismic. It's possible it has already started, but I have not gotten word to confirm that. I hope we will do a release when it begins, however, with similar events in the past management has felt that we shouldn't do a release on "old news". I just have to keep asking. Management has not given me any information I can release regarding the buy back. Earnings should be out the first week in March. If that date changes, I
would only know perhaps one week in advance. Please feel free to keep checking.<<<<
I just glanced in today's IBD and it has that CWEI, at a price of 15 5/8, is selling at a PE of 9--guess we will see 8 in the next edition. I asked CWEI to contact Rodman, Renshaw to have them add the 0.16 non-recurring charge into the 1996 fiscal year estimate --that will raise Rodman, Renshaw's estimate to $1.72 and I just sent another letter to Zacks to ask if they have done anything about deleting Morgan Keegan's phony $1.15 estimate for the year.
Today's volume was very large--I would think the stock is oversold.
Buzz |
