covenants will be breached and credit line will be reduced dramically next redeterrmination
that isnt so short sighted
things can turn very fast gents
CWEI has a substantial land position in the Permian Basin.
CWEI trades at a significant discount to its peers on an enterprise value to leased acre basis.
CWEI should be valued at $500 per share, implying an increase of 285% vs. the current stock price of $129.92 (as of July 10, 2014).
By Andre Kovensky and Alyjan Daya
Investment Summary: The Permian Basin is potentially the largest oil and gas basin in the United States. Clayton Williams Energy (NYSE:CWEI) has a substantial land position in the Permian Basin (Wolfbone in the Delaware Basin and Wolfberry in the Midland Basin) but trades at a significant discount to its peers on an enterprise value ("EV") to leased acre basis. We believe that CWEI should be valued at $500 per share, implying an increase of 285% versus the current stock price of $129.92.
ares buying up all the stock in open market to gain majority control then sell off for 80-100 a share
What you fail to realize is there is an underlying bid by CXO to aquire this coamny for 70-100 a share if the CEO Mr. Clayton was on board since he owns more then 51% of company. Also ARE Management has aquired 2.2 million warrents are 22 a share with there 350 mill load to the company. They have been buying in the open market everyday. Looks like tehy want to aquire another 3.5 million shares bwteen them and Third point hedge fund and then they will have the majority share of the company and turn around and sell to CXO for 100. Rising oil prices will only increase the value they can sell for at 50 oil they should be able to fetch 120 a share. plus the 2 million share short they will rush to cover could be a real ugly day coming very soon for them.
Wallstreet will catch on soon. No brainer buy here
no braine r
i smell a huge rip coming
Yeah anyone with hald a brain will be buying back as much debt as they can at 40 cents on dollar. Buy all you can here
That would bring EV vale at 1.1 billion which is still extremely cheap for the land and reseves this company owns
Very good purchase on there part and hopefully they are still buying more at this level