Quick Win by the Algorithm: CWEI

Quick Win by the Algorithm

CWEI (Clayton Williams Energy, Inc)

On July 22nd 2016, the I Know First algorithm gave a bullish signal of 73.36 for the ticker CWEI with a predictability indicator of 0.38. In accordance with the algorithm’s prediction CWEI experienced a Quick Win by the Algorithm of a 109.5% increase in stock price in only 1 Month.

Quick Win by the Algorithm

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. The company also owns interests in and operates oil, natural gas, and water service facilities. Clayton Williams Energy, Inc. was founded in 1991 and is headquartered in Midland, Texas.

I Know First has been following CWEI closely since mid-January when the algorithm accurately predicted that the stock would increase. The algorithm was right and CWEI increased of 109.5% from July 22nd to August 22nd.


Quick Win by the Algorithm

This increase can be attributed to the fact that Clayton Williams Energy announced an agreement to sell $150 Million of common stock. This new capital will strengthen the balance sheet, reduce leverage and enhance growth. Proceeds from this sale will provide additional liquidity for potential debt reduction transactions related to its 2019 Senior Notes.

In connection with the transaction, lenders under the Company’s term loan credit facility waived certain restrictions to enable the Company to use proceeds from equity issuances and specified asset sales for debt reduction and capital expenditures. The Company also announced that it has engaged an executive search firm to assist in recruiting executives to fill two senior management positions.

This forecast for CWEI was sent to current I Know First subscribers on July 22nd, 2016.