Gerald,
Prior to the recent debacle, created by an erroneouse earnings report coupled with a stock buyback announcement, and falling oil prices, causing CWEI to plummet from the 19 range down to as low as 12, I would have answered your inquiry with a resounding yes. At this juncture all I am willing to say is, CWEI, with earnings about to be announced which will finally give it a very positive PE, there certainly should be a magnitude greater upside potential, than downside risk, in this stock. After seeing the effects of the aforementioned items, somehow I think the street's interpretation of the buyback announcement, fueled by the error in earnings announcement and falling oil prices, was that CWEI believed the price of their stock was going to fall back below the Secondary Offering price, which it definitely ended up doing. I don't expect the climb out of this deep pit will be easy; there are a lot of wounded investors who, after losing large paper profits, are disheartened and will want to get out; halfway afraid the stock will fall again.
Buzz Mills |
