Trade-Ideas LLC identified

Clayton Williams Energy

(

CWEI

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Clayton Williams Energy as such a stock due to the following factors:

  • CWEI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.4 million.
  • CWEI has traded 272,789 shares today.
  • CWEI is down 3.6% today.
  • CWEI was up 14.8% yesterday.

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More details on CWEI:

Clayton Williams Energy, Inc., an independent oil and gas company, explores for, and develops and produces oil and natural gas primarily in Texas and New Mexico. CWEI has a PE ratio of 11. Currently there are no analysts that rate Clayton Williams Energy a buy, 3 analysts rate it a sell, and 3 rate it a hold.

The average volume for Clayton Williams Energy has been 629,900 shares per day over the past 30 days. Clayton Williams Energy has a market cap of $308.9 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.43 and a short float of 40.9% with 3.62 days to cover. Shares are down 1.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Clayton Williams Energy as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • CLAYTON WILLIAMS ENERGY INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CLAYTON WILLIAMS ENERGY INC swung to a loss, reporting -$8.07 versus $3.61 in the prior year. For the next year, the market is expecting a contraction of 24.2% in earnings (-$10.03 versus -$8.07).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 93.4% when compared to the same quarter one year ago, falling from -$18.23 million to -$35.26 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CLAYTON WILLIAMS ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CLAYTON WILLIAMS ENERGY INC is currently lower than what is desirable, coming in at 29.91%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -117.09% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $0.52 million or 97.33% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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