Gary,
I appreciate your candid technical analysis. The chart definitely doesn't look very good. CWEI's price is reflective of current oil prices and admittedly it got hammered, more than most independent oils, during the recent oil sector rotation. I think mainly because of its meteoric rise in the past year. The market always looks for ways to topple high flyers, and falling oil prices, coupled with Paine Webber's error, and CWEI going into an exploration year where their earnings will be lower than last years, all contributed. Items that would reverse the present trend and affect the markets present uncertainty with CWEI, and the resultant technical analysis, are: positive news relating to the drilling of the reef well 9 miles to the north; an article on CWEI due to come out in BuySide Magazine in the future; an upgrade by Paine Webber; a stabilizing, or rise, in oil and gas prices; and last, but not least, the actual earnings release in less than two weeks, which will greatly change CWEI's published financial picture. After the earnings release, the fundamentals will be rock solid. So much of what happens on the market is based on timing and so let's hope that the timing is on our side for a change.
Buzz |
